AUCTION
1. AUCTION
1.1 The property shall be sold to the highest accepted bidder “the PURCHASER” subject to
the Conditions of Sale which the PURCHASER shall sign immediately on fall of the
hammer.
1.2 The AUCTIONEER oversees the auction and has the sole right to regulate the bidding
procedure and correct any errors made by him. Should any dispute arise between the
bidders, the final decision of the AUCTIONEER shall be binding.
1.3 Every bid constitutes an offer to purchase the PROPERTY for the bid amount, and the
SELLER or the AUCTIONEER are entitled at their discretion to accept or reject an
offer. The AUCTIONEER AND THE SELLER have the right to protect the price and are
entitled to withdraw the PROPERTY from sale prior to acceptance by the SELLER.
1.4 The SELLER is entitled to bid, but shall not be entitled to make a bid equal to or exceeding
the reserve price and can authorize any other party including the AUCTIONEER to bid on
his behalf only up to the reserve price.
1.5 Before the confirmation period expires and during which time the offer remains open for acceptance
by the
SELLER, no bid may be withdrawn.
2 PURCHASE PRICE
The purchase price of the PROPERTY, plus V.A.T if applicable, shall be paid as follows:
2.1 a deposit of 5% (FIVE PERCENT) of the purchase price to the AUCTIONEER by the
PURCHASER
immediately on the fall of the hammer;
2.2 the PURCHASER shall furnish a Banker’s or other approved form of guarantee
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acceptable to the SELLER’S attorneys, made in favor of the SELLER and/or the Sellers
nominee, payable in cash, free of exchange, upon registration of transfer into the name
of the PURCHASER for the balance of the purchase price. The PURCHASER may elect
to secure the balance of the purchase price by payment in cash to the SELLER’S
attorneys, who shall hold same in trust, pending registration of transfer into the name
of the PURCHASER. The aforesaid guarantee shall be presented and/or cash shall
be payable by the PURCHASER to the SELLER’S attorneys within 30 (THIRTY) days of
the acceptance date.
3 VALUE ADDED TAX
The purchase price excludes VAT. In the event of VAT being payable on the purchase price as
a result of the sale, such VAT shall be paid by the PURCHASER to the SELLER'S attorneys
immediately on demand thereof.
4 AUCTIONEER'S FEE
The PURCHASER shall be liable to pay over and above the amounts payable in terms of
clauses 2.1 and 2.2, AUCTIONEER’S FEE of 10% (TEN PERCENT) of the purchase price,
plus VAT thereon, which Fee be deemed to have been earned and is payable
immediately upon the fall of the hammer.
5 OCCUPATIONAL INTEREST
Should the PURCHASER take possession of the PROPERTY prior to registration being
affected, the PURCHASER shall pay occupational interest calculated at the rate of 10% (TEN
PERCENT) per annum on the balance of the purchase price outstanding and capitalized
monthly from date of possession to date of registration of transfer without deduction or off-
set, on registration of transfer.
6 TRANSFER OF THE PROPERTY AND COSTS OF TRANSFER
6.1 The transfer of the PROPERTY will be done by the SELLER’S Conveyancers and as
quickly as possible after the acceptance date.
6.2 The PURCHASER agrees to pay all transfer costs incurred in respect of the transfer of
the property, transfer duty, if applicable, and all other costs necessarily incurred,
immediately upon request to do so by the SELLER'S attorneys.
6.3 The PURCHASER undertakes to sign all documents necessary to effect transfer of the PROPERTY
immediately when requested to do so by the SELLER'S attorneys.
7 RATES AND TAXES
The SELLER shall be liable for all rates and taxes and other Municipal charges levied on the
PROPERTY for the period up to the date the PURCHASER takes possession whereupon
the PURCHASER shall be liable for all rates and taxes and other Municipal charges levied
thereafter. The PURCHASER shall refund to the SELLER a
ro rata share of all rates and taxes paid in advance by the SELLER for the period after the
date of possession, which refund shall be paid upon registration of transfer.
8 POSSESSION AND RISK
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8.1 The PURCHASER shall take possession of the PROPERTY given to him by the
SELLER, at a date determined by mutual consent provided that clause 2 above has
been fulfilled, from which date all risks and benefits of ownership in respect of the property
shall pass to the PURCHASER.
8.2 From date of possession until transfer date, the PURCHASER, shall at his own expense,
insure the PROPERTY together with improvements thereon for the full replacement value
against risk of loss or damage by any cause with an insurer acceptable to the SELLER.
The SELLER’S interest in the PROPERTY shall be endorsed against such policy for
such period.
9 CONFIRMATION & ACCEPTANCE
9.1 The BIDDER’S (PURCHASER’S) offer shall remain open for acceptance by the SELLER
until close of business on the 7th day from the date of the sale (“confirmation period”). The
offer may be accepted prior to expiry of the confirmation date by either the SELLER or the
AUCTIONEER.
9.2 Should the SELLER reject the PURCHASER'S offer, the AUCTIONEER will repay to the
PURCHASER any deposit and commission paid by it.
9.3 Should the sale require the consent of any statutory authority or any court of law, and then
this sale is subject to such consent.
10 REPAIRS AND IMPROVEMENTS
10.1 The PURCHASER shall not be entitled to effect any alterations to the PROPERTY
before registration of transfer, without the prior written consent of the SELLER.
10.2 In the event of the sale being cancelled, the SELLER shall not be obliged to compensate the
PURCHASER
for any authorized alteration/s effected whatsoever.
10.3 The PURCHASER shall be liable for any charges and damages suffered by the SELLER
as a result of any alterations effected by the PURCHASER unauthorized by the SELLER.
11 EXISTING TENANCIES
11.1 The PROPERTY is sold subject to all existing tenancies, and the PURCHASER shall be
bound by the terms and conditions of the aforesaid, of which he is fully acquainted.
11.2 The PURCHASER shall not be entitled to give notice to any existing tenant of the
PROPERTY until he has complied with clause 2.2.
12 VOETSTOOTS, EXTENT AND REPRESENTATIONS
12.1 The PURCHASER acknowledges and understands that this purchases of the
property is at an auction and the provision of Section 55 of the Consumer Protection Act
(Act No. 68 of 2008)are not applicable to this sale and the Purchaser is offering to
purchase this property “voetstoots” subject to such conditions and servitudes as are
mentioned or referred to in the current and/or prior Title Deeds and to the conditions of
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establishment of the Township and to the zoning applied to it under the Town Planning
Scheme, as it stands. The SELLER shall not profit by any excess nor be answerable for
any deficiency in the nature or extent of the property. Neither the SELLER nor the
AUCTIONEER shall be responsible for pointing out to the PURCHASER any surveyor’s
pegs or beacons in respect of the PROPERTY.
12.2 The PURCHASER hereby acknowledges that he has not been induced into this
agreement by any express or implied information, statement, advertisement or
representation made by the AUCTIONEER or any other person, or by or on behalf of the
SELLER. The PURCHASER hereby waives any rights he may otherwise have obtained
against the SELLER resulting from such information, statement, advertisement or
representation made by or on behalf of the SELLER.
12.3 The PURCHASER acknowledges that he has fully acquainted himself with the
PROPERTY he has purchased.
13. BREACH OF CONTRACT & LEGAL COSTS
In the event of the PURCHASER failing to comply with any of the conditions contained in
this agreement, the SELLER shall be entitled to cancel immediately and the PURCHASER
shall be liable to pay in addition to any commission payable in terms of this agreement, costs
for damages which shall include but not be limited to any and all additional costs associated
with the re-auctioning of the PROPERTY including any additional advertising costs, interest
and damages suffered by the SELLER as a result of the PURCHASER'S breach and the
subsequent cancellation of the agreement. These costs shall be paid to the SELLER. The
SELLER shall be entitled to retain any monies received by it as a genuine pre-estimate of its
liquidated damages which are held by the Conveyancer.
In the event of the PURCHASER failing to comply with any of the terms of this agreement,
The PURCHASER shall be liable for all legal costs incurred by the SELLER to enforce this
agreement, including but not limited to collection commission, on an attorney and client scale.
14. DOMICILIUM AND NOTICES
For the purposes of any notices to be given to, or of any legal proceedings to be instituted in
terms of this agreement, the PURCHASER and SELLER hereby choose domicilium citandi
et executandi the addresses recorded below their signatures hereunder or at any changed
address specified in writing by notice delivered by the party so changing his address to the
other. Any notice sent by pre-paid registered post shall be deemed to have been received on
the fifth day after posting; any notice delivered by hand shall be deemed to have been received
on the day of delivery; any notice sent by fax shall be deemed to have been received on the
first business day after date of dispatch.
15. JOINT AND SEVERAL LIABILITY
Should this agreement be concluded with more than one PURCHASER, then the liability of all such
PURCHASERS to the SELLER and to the AUCTIONEER shall be joint and several in solidum.
16. NOMINEE
The PURCHASER shall be entitled to nominate a nominee in his place as PURCHASER, by written
notice to the
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SELLER upon the following terms and conditions:
16.1.1 The SELLER shall be handed the aforesaid notice by no later than close of
business on the acceptance date;
16.1.2 the nominee’s name and address shall be reflected in the notice as
PURCHASER so nominated, and shall be accompanied by the nominee’s
written acceptance;
16.1.3 the nominee has acquainted himself with all the terms and conditions of this
agreement and is bound by the provisions of this agreement as the
PURCHASER;
Should the PURCHASER nominate a nominee in terms of this clause, then:
16.1.4 all reference to the PURCHASER shall be deemed to be a reference to its nominee; and
16.1.5 the PURCHASER by signing this Agreement, hereby binds himself as surety
and co-principal debtor in solidum, for and on behalf of all the obligations of
the aforesaid nominee as PURCHASER, to and in favour of the SELLER, for
all the PURCHASER'S obligations under this agreement, including damages,
and renounces the benefits of division.
17 COMPANIES OR CLOSE CORPORATIONS
Should the PURCHASER be a company, close corporation or trust, the person signing this
agreement on behalf of such PURCHASER, by his signature hereby binds himself as surety for
and co-principal debtor in solidium with the PURCHASER for the due and proper performance
of all its obligations in terms of this agreement hereof.
18 COMPANY OR CLOSE CORPORATION TO BE FORMED
18.1 If the PURCHASER signs this agreement in his capacity as nominee or agent for a
company or close corporation to be formed and the PURCHASER fails within 20
(TWENTY) days from date of acceptance and confirmation of this agreement to
register such company or close corporation having as one of its objects the
ratification and adoption of this agreement, or such company or close corporation
fails to adopt or ratify this agreement within 15 (FIFTEEN) days after date of its
incorporation, then the PURCHASER shall as from the date thereof become the
actual PURCHASER and be bound in his personal capacity to all the terms and
obligations under this agreement.
18.2 In the event of such company or close corporation being registered and duly
adopting or ratifying this agreement, or the nomination effected, then the
PURCHASER by his signature hereunder, shall be deemed to bind himself to the
SELLER as surety and co-principal debtor in solidium with such company or close
corporation for the due performance by it as PURCHASER of the terms, conditions
and obligations arising out of this agreement.
19 ELECTRICAL CERTIFICATE OF COMPLIANCE
The PURCHASER acknowledges that:
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19.1 the SELLER will be under no obligation to furnish him with an electrical certificate of
compliance which certificate is issued in terms of the Occupational Health and Safety
Act No 85 of 1993; and
19.2 the PURCHASER will be responsible for obtaining the electrical installation
certificate of compliance prior to registration of transfer at his own expense including
the cost of any electrical work required to be done, in order to obtain the said
certificate.
20 MAGISTRATES' COURT JURISDICTION
The parties hereto consent to the jurisdiction of the Magistrates' Court in terms of Section 45
read with Section 28 of the Magistrates’ Court Act of 1944 as amended. Notwithstanding the
aforesaid, neither party shall be prevented from approaching the High Court of South Africa
for any relief sought.
21 GENERAL CLAUSES
21.1 Words in the singular shall include the plural and vice versa, and the
masculine gender includes the feminine and neuter genders and vice versa
and words importing persons shall include partnerships and bodies corporate,
and vice versa.
21.1.1 No waiver, extension of time, indulgence or suspension of any of the
provisions of this agreement which either party may have given, shall be
binding, unless reduced to in writing and signed by both parties.
21.1.2 All parties signing this document confirm and agree that they have read and
understood all the terms and conditions of this agreement and are legally
bound hereto.
21.1.3 These Conditions of Sale constitute the entire agreement between the
respective parties and no variation, alteration, cancellation agreement,
representation or warranty between the parties other than those set out herein
are binding on the parties unless reduced to in writing and signed by all parties;
21.1.4 The SELLER warrants that he is duly authorized to sign acceptance of the Deed of
Sale.
22 MORA INTEREST FOR LATE PAYMENT
22.1 By bidding on auction and winning the bid, the Purchaser agrees to abide
by the Rules Of Auction which includes paying as per the Rules of Auction.
Should the Purchaser then make a late payment in terms of the Rules of Auction,
then the Purchaser will be charged interest on the amount paid late and
at a rate 3% above the advertised prime lending rate. Interest
shall be calculated from the date it became payable to the date it was paid,
both days inclusive.