KVV Inc Attorneysbuyer's failure to secure bond approval by the deadline, even with a seemingly agreed-upon extension (that wasn't in writing as required), invalidated the sale. Despite later attempts to waive the bond clause, the sale was already void. The buyer got their deposit back, while the seller faced losses. Sellers: ensure written extensions. Buyers: diligently pursue financing to avoid losing your deposit.
KVV Inc AttorneysPreparation is key to a successful house sale. A common pitfall is a poorly drafted "bond clause" (suspensive condition). This clause makes the sale conditional on the buyer getting a bond. Vague wording can lead to disputes. The clause should specify the deadline, amount, and what constitutes "approval." Buyers should consider specifying a maximum interest rate. Sellers might add a "72-hour clause." If the buyer can't secure a bond, the clause can be amended before the deadline, or the buyer can waive it (if for their benefit). Consult an attorney before signing any agreement.
KVV Inc AttorneysA recent court case highlights the importance of clearly worded property sale agreements. A seller tried to escape a sale, claiming a bond clause had expired. The clause stipulated a 30-day period for bond approval, starting from "sole beneficial occupation," not the sale date. Despite the buyer having possession and occupation, the court found "sole beneficial occupation" hadn't been granted due to unlawful occupants. Therefore, the 30-day period never commenced, and the seller remained bound by the agreement. This underscores the need for professional legal assistance when drafting or reviewing these agreements.
KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.
Fostering Partnerships, Driving Results.
© KVV Inc. Attorneys 2025. All Rights Reserved. Privacy Policy | POPIA
KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.
Fostering Partnerships,
Driving Results.
© KVV Inc. Attorneys 2025.
All Rights Reserved. Privacy Policy | POPIA
