Lack of respect for, or ignorance of the law can bedevil SA property transactions
Category News
In South Africa there is a large body of people today, who despite having had more than three centuries of written law in force in at least parts of the country, still somehow believe that a signed legal contract can be thrown overboard if it proves to be inconvenient or no longer to their liking. This applies regularly with Deed of Sale Property Agreements, says Rowan Alexander, Director of Alexander Swart Property.
"There is a deplorable lack respect for signed legal documentation among some South Africans," says Alexander. "In my experience this often comes about purely from ignorance - but in a few cases the party trying to break the agreement is just "trying it on"."
In a recent case handled by Alexander Swart, a Sale Agreement was signed by the seller and buyer. The buyer was granted a bond to buy the property - only to find that the circumstances of the seller had altered (he had changed his mind on a very important decision affecting his future) and now wanted to hold onto his home and to cancel the Deed of Sale. The buyer, who had put a great deal of effort into finding a suitable home and raising finance for his purchase, was understandably not prepared to backtrack and walk away. As things now stand, it looks as if he will soon be able to take possession of the home.
Some of those trying to subvert legal agreements, says Alexander, are under the impression that the much-publicised Consumer Protection Act introduced a year or two ago, to protect naïve and ignorant contract signers from the consequences of agreeing to deals they did not fully understand, will apply in their cases-but this is very seldom the case. Home sellers are not classified as suppliers by the Consumer Protection Act and the buyer therefore cannot be classified as a consumer in terms of the act. In other words, most home sales are private treaties to which the CPA does not apply.
Some people have the idea that the so-called "cooling off clause" which allows for the withdrawal from a residential contract within seven days of signing, applies to all home sales. In reality it can only be called on where the property is valued at under R250 000. Those trying to break a signed Deed of Sale contract, warned Alexander, can find themselves actually having to pay not only their own the legal costs but also that of the other part - and legal fees are not cheap.
So, what advice does he give to those who find themselves in this predicament, desperately seeking a way out from a home buying or selling contract which they no longer want? Alexander says the ONLY possible remedy is to be 100% open and honest with the other party. Ask them, possibly for a monetary compensation, to cancel the deal.
"In our experience," he says, "people are often sympathetic and if they can see that they will not be too seriously inconvenienced, may try to help - but do not count on this. Rather take no chances. Before you sign to buy or sell, make completely sure that you will not be changing your mind on this matter down the line."
For further information contact Rowan Alexander on cell phone number 082 581 3116 or email rowan@asproperty.co.za.
Author: Independent Author
