Agreements Eequired

The parties would have to enter into two agreements

an Agreement of Sale to enable the purchaser to purchase an undivided share in the property; and a Use and Occupation Agreement setting out what the parties have agreed in relation to the use and occupation of the property.

In the Agreement of Sale one would have to provide for, interalia, the following
  • the purchase price;
  • which fixtures and fittings are included;
  • how the purchase price would have to be paid;
  • the extent to which the property has been inspected and conditions and servitudes examined;
  • that risk and profit will pass on transfer;
  • who will pay for the cost of transfer and the costs of the agreement;
  • whether any agents commission is payable;
  • electrical installation(s);
  • default or breach by any of the parties;
  • the address which the parties will appoint for the transaction; and
  • the way in which disputes will be resolved, for example by arbitration.
The use and occupation agreement will provide for the following
  • the right to own an undivided share in the property;
  • when each party will be entitled to use the property;
  • the compensation payable for the use of the property;
  • the extent to which the property can be used by people, i.e. how many people can occupy the property;
  • the extent to which the property can be let and under what conditions in relation to damages, rental etc;
  • payment of expenses such as electricity and water and other expenses;
  • maintenance of the property and who will be responsible;
  • the circumstances under which alternations can be made to the property;
  • payment of levies to a fund to cover the expenses of the property;
  • appointment of a management agent to collect levies and pay expenses;
  • all the issues which may potentially arise should the need arise to mortgage the property;
  • obtaining an architect certificate in relation to the building plans lodged with the local authority;
  • dealing with the sale of the share of the property by a party should one party wish to sell same. In this regard our proposal is that a party will not be entitled to sell same without first offering to sell his share to the existing owners;
  • sequestration/insolvency and/or death and the valuation of the property in the event of these circumstances arising;
  • the parties general obligations would have to be set out in relation to issues such as insurance etc;
  • what will happen if there is loss or damage to the property;
  • breach and termination of the agreement and the circumstances under which that could take place;
  • management rules for the use of the property;
  • dispute resolution;
  • meetings and the procedures which should be followed in these meetings; and
  • the cost of the agreement.