Instalment Agreements Meaning
In this economic climate in South Africa, many consumers choose to enter into temperable sales contracts as a plausible means of buying property or real estate. In the spirit of a catch-up time purchase agreement, the property is booked and payment is deferred and the deferral must be made since the customer must pay the purchase price in increments. The law on the disposal of the property obliges the seller to note the purchase contract in temperament against the declaration of ownership within 90 days of the conclusion of the contract of sale with the competent registrar. If the seller does not handle the registration within 90 days, the buyer has the option to terminate the purchase contract to temper or register the registration. The corresponding title deeds are then confirmed either by the seller or by the buyer. This insulates the buyer, as the seller is excluded from the disposal of the property to a third party. No transfers are allowed except for the buyer. In the case of Amardian e.a./Registrar of Deeds and Others (Women`s Legal Trust Amicas Curiae) 2019 (2) BLCR 193 (CC), the court found that the buyer`s staggered payment obligation is not due and payable before the agreement is entered into the deeds register. It can be inferred that the payments are due and payable from the date of registration of the purchase contract to temper. For access to quality legal documents and online agreements, please contact us at SchoemanLaw Inc.
The temperature purchase contracts have a clause that retains ownership until the final tranche is paid. This serves as a guarantee for the payment of the purchase price. Some tempering contracts are structured in such a way that payments resemble an option-to-purchase lease. Monthly payments are due in amounts similar to the rent that should have been paid under a lease agreement for the exclusive occupancy of the property. In the end, a balloon payment equal to the purchase price is due to acquire ownership of the property. If the payment of the balloon is not made, the contract normally expires without refund of the payments made and without any other liability on the part of the buyer. An example of such a transaction is when a customer buys a car for about R500,000. He must pay the purchase price in increments. Interest is deducted, payment is deferred and ownership is booked until final payment. The customer pays the purchase price of R500,000 plus interest in increments until the full amount is paid to the seller so that the transfer of ownership can take place.
The missed agreement or memorandum of understanding should be registered immediately after signing. As a general rule, a memorandum and not the full agreement is registered not to disclose the exact terms of payment or other private agreements of the parties.