KVV Inc. Attorneys

When Bond Clauses Sink Sales

KVV Inc Attorneys

Published on: 04/03/2025

Preparation 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.

Property

Beware The Badly Worded Bond Clause!

KVV Inc Attorneys

Published on: 04/03/2025

A 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.

Property

Leaving Anything Important Out of Your Property Sale Agreement Will Sink It

KVV Inc Attorneys

Published on: 04/03/2025

Land sale agreements must be in writing and signed by all parties or their authorized agents (Alienation of Land Act). This written contract must include all material terms: essential terms (parties, land, price) and any term materially affecting rights/obligations (e.g., subdivision). Omitting a material term, even if verbally agreed upon, renders the sale invalid. Always record all important terms in writing and seek legal advice before signing.

Property

KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.

Fostering Partnerships, Driving Results.

KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.

Fostering Partnerships,

Driving Results.