Firstly we will explain the meaning of contract, before explaining sale agreement.
This is an agreement between two or more parties. When the agreement is set down on paper, it is called a written contract. Terms and condition are contained in the contract, once the parties sign the contract, it means that the terms and conditions have been agreed to, and the contract becomes legal and binding. The signing of this agreement is witnessed.
Do not sign a contract if you do not understand or disagree with any of the terms and conditions. Once signed, you all the parties must act in terms of the contract, and keep to all the obligations. If you don’t, you are in breach of contract. Breaking a contract has consequences.
When buying a property, the seller and the buyer enter into an agreement. This is called a sale agreement.
This is the contract a buyer and a seller of an existing property enter into. It is sometimes called a Purchase Agreement. The following is usually found in this contract.
- The names of the buyer and the seller
- The address of the property – or the description of where the property is situated
- The price of the property
- Any special condition to the sale
- The date that you will take occupation, and be able to move into the house
- The name of the lawyers attending to the transfer of the property
- Consequences of breach by either party
- Any other thing that the seller and the buyer have agreed – for example, if the seller agree to leave curtains or other movable items in the house as part of the sale.
The sale agreement becomes a binding contract of sale when the seller accepts the buyer’s offer and sign the offer.