57 BURT DRIVE, NEWTON PARK, PORT ELIZABETH

0861 005 670

DEED OF SALE

NAME OF SCHEME: _________________

NAME OF ATTORNEY: ________________

ANNEXURES:

ANNEXURE “A”: COVERING SCHEDULE

ANNEXURE “B” SITE PLAN AND ELEVATION PLAN

ANNEXURE “C” PLANS AND SCHEDULE OF FINISHES

ANNEXURE “D” EXTRACTS OF SECTION 37(1)(a), 28 and 44 (1) OF THE

SECTIONAL TITLES ACT

ANNEXURE A: COVERING SCHEDULE

Name of Scheme: _____________________________________________________

Property Situated at: ERF _____________________________________________________

Street Name: _____________________________________________________

DEVELOPER/BUILDER: COHEN CONSTRUCTION AND PROPERTY DEVELOPMENTS CC

REG No: 2006/026894/23

57 BURT DRIVE NEWTON PARK PE, TEL 0413643999 FAX 041 3643999, E-MAIL: aaroncohen20@yahoo.com

SELLER: COHEN CONSTRUCTION AND PROPERTY DEVELOPMENTS CC REG No: 2006/026894/23

57 BURT DRIVE NEWTON PARK PE, TEL 0413643999 FAX 041 3643999, E-MAIL: aaroncohen20@yahoo.com

Hereinafter referred to as the SELLER

PURCHASER 1

Full Names:

Surname:

Identity Number:

Marital Status (Unmarried / Married IN / OUT):

Spouses Name:

Spouse Identity Number:

Purchaser Address:

Telephone Number Work:

Telephone Cell (Home):

E-mail address:

Where do you bank:

PURCHASER 2

Full Names:

Surname:

Identity Number:

Marital Status (Unmarried / Married IN / OUT):

Spouses Name:

Spouse Identity Number:

Purchaser Address:

Telephone Number Work:

Telephone Cell (Home):

E-mail address:

Where do you bank:

PURCHASE PRICE (INCLUDING VAT and INCLUDING NHBRC LEVY)

R ( )

Payable as follows:

DEPOSIT: R CASH / GUARANTEES

Payable on signature of the agreement.

BALANCE: R CASH / GUARANTEES

Payable on Demand from the Conveyancer / Against Sale of Purchasers Property

BOND TO BE APPLIED FOR: R

Mortgage bond to be approved within 30 (THIRTY) days after signature hereof: ___________(date)

THE PURCHASER SHALL DELIVER ALL DOCUMENTS REQUIRED FOR THE BOND APPLICATION TO

THE BOND ORIGINATOR WITHIN 72 HOURS FROM SIGNING THE AGREEMENT. A LIST OF ALL

DOCUMENTS TO BE PROVIDED HAS BEEN HANDED TO THE PURCHASER AS ATTACHMENT

PROPERTY DESCRIPTION:

DWELLING AS PER ATTACHED SITE PLAN AND FRONT ELEVATION PLAN

IN EXTENT: 104.2m2 (SQUARE METERS)

PROPERTY TYPE (AS PER PLAN): 3B No entrance

POSSESSION AND OCCUPATION:

ANTICIPATED DATE OF OCCUPATION: _________________________________

OCCUPATIONAL RENT: R________________________________

ESTATE AGENT:

AGENT : R________________________________

CONTACT NUMBER : _________________________________

AGREEMENT OF SALE

MEMORANDUM OF AGREEMENT OF SALE made and entered into by and between the Seller

and the Purchaser as set out in the covering schedule.

PREAMBLE

A. The Seller intends erecting two sectional title units on the erf described to in the Schedule. B The sectional title units will be erected as demand dictates substantially in accordance with the Site

Plan and the BUILDING PLANS.

C The Seller wishes to sell and the Purchaser wishes to buy the Unit referred to hereinafter and in the

Schedule.

D. The Seller confirm that the garage herein sold will be registered as part of the townhouse (if

applicable) and the garden area will be registered as an exclusive use area.

DEFINITIONS AND INTERPRETATION

1.1 For the purpose of this agreement, unless the context indicates otherwise: 1.1.1 "ACT" shall mean The Sectional Titles Act No. 95/1986 or any amendment thereof, or any Act

which may be promulgated in place thereof. 1.1.2 "BODY CORPORATE" shall mean a BODY CORPORATE as defined in the ACT, which, upon

incorporation, will be the controlling body of the BUILDINGS in terms of the ACT. The Body Corporate is registered in the Deeds Office when the Sectional title unit is registered.

1.1.3 "BUILDINGS" shall mean the BUILDINGS to be erected on the PROPERTY and to be known as the Scheme described in the Schedule.

1.1.4 "PROPERTY" shall mean the Seller's property namely the ERF described in the Schedule in the Nelson Mandela Metropolitan Municipality, Division of Port Elizabeth, the Province of Eastern Cape;

1.1.5 "OCCUPATION DATE" shall mean the anticipated date of occupation as set out in the covering schedule and subject to the conditions contained in the clauses relating to the occupation of the property.

1.1.6 "UNIT" shall mean the UNIT in the SCHEME as referred to in the Schedule to be established in

terms of the ACT comprising:

1.1.6.1 The townhouse (including the garage, if applicable) reflected on the covering schedule forming part of the BUILDINGS to be erected on the PROPERTY in accordance with the BUILDING PLANS (hereinafter referred to as the SECTION); and

1.1.6.2.1 An undivided share in the common property in the land and the BUILDINGS as shown and more fully described on the SECTIONAL PLANS apportioned to the SECTION in accordance with the participation quota of the SECTION to be specified in a schedule to be endorsed on the SECTIONAL PLANS.

1.1.7. “GARAGE” if applicable, shall mean part of the “UNIT” as described above and registered as such. 1.1.8. “GARDEN AREA” shall mean the exclusive use area registered as being the garden of the Unit. 1.1.9. "SECTIONAL PLAN(S)" shall mean the sectional title plan(s) in respect of the UNITS drawn by a

Land Surveyor and approved by the Surveyor General in terms of the ACT. 1.1.10 "SELLERS CONVEYANCERS" shall mean the attorneys firm, Greyventeins Inc, 041 501 5500.

1.1.11."BUILDING PLANS" shall mean the plans and schedule of finishes attached hereto and marked

Annexure "B".

1.1.12 "SCHEME" shall mean the SECTIONAL TITLE SCHEME comprising the townhouses, garages,

garden areas and communal property erected on the PROPERTY by the Seller in accordance with

the BUILDING PLANS described in the Schedule.

1.2 Other words or expressions defined in the ACT shall have the meanings therein defined

notwithstanding that the registration of the SECTIONAL PLAN in respect of the PROPERTY has not

been effected.

1.3 Any words in this agreement importing the masculine gender shall include females, words importing

persons shall include corporate bodies, and the singular shall include the plural.

1.4 The head notes to the clauses in this agreement are inserted for reference purposes only and shall

not affect the interpretation of any of the provisions to which they relate.

1.5 The annexures and the Schedule to this agreement shall be deemed to be incorporate in and form

part of this agreement.

1.6 Any rights and obligations to which the Seller is entitled to in the agreement and which is

imposed upon the Seller and any reference to the Seller is automatically regarded as rights,

obligations and reference to the Developer.

2. SALE OF UNIT

2.1 The Seller hereby sells to the Purchaser who hereby purchases the UNIT, GARDEN AREA and the

GARAGE (applicable) in the SCHEME as set out in the SCHEDULE.

3. SECTIONAL PLAN AND VARIATIONS OF BUILDING PLANS

3.1 The Purchaser acknowledges that the SECTIONAL PLANS have not been approved and that the

exact boundaries of the SECTION forming part of the UNIT shall be as shown on the SECTIONAL

PLANS TO BE APPROVED and the Seller warrants that they will be substantially in accordance

with those set out in the annexures hereto, and that the undivided share of the common property

apportioned to the SECTION shall be in accordance with the participation quota which is ultimately

determined in terms of the ACT upon approval and registration of the SECTIONAL PLAN. The

Purchaser further acknowledges that the Seller has the right from time to time to make reasonable

variations to the BUILDING PLANS provided that such variations are only minor and that the UNIT

hereby sold, does on completion, substantially agree with that described in the BUILDING PLANS.

3.2 The Purchaser shall not be entitled to claim cancellation of this agreement or any reduction in the purchase price by reason of: - 3.2.1 Any minor alterations to the size, location or participation quota of the Section or any other

Section or Sections. 3.2.2 Any minor variations in the undivided share of the common property as set out in clause 3.1,

or 3.2.3 The addition of garages or parking bays for the use of the owners;

and the Purchaser undertakes to accept transfer of the UNIT as defined in the SECTIONAL

PLANS.

3.3 In the event that the extent of the UNIT is within a 5% variance of the approximate extent

reflected on the Covering Schedule, it will be deemed to be a minor alteration.

In the event of any dispute as to whether any changes exceed those permitted or as to whether any

variation or alteration mentioned is minor or not, the written decision of the Seller's architect or

engineer or land surveyor, acting as an expert and not as an arbitrator, shall be final and binding on

the parties.

3.4 The Purchaser confirm having been informed that the registration of this Unit can only be

effected once both Units forming part of this Scheme has been sold, is completed, retentions

is uplifted and the Sectional Title Register can be opened.

3.5 The Purchaser confirm having been informed that the Seller requires the consent from

abutting owners to consent to the building of two units on the erf as well as Municipal

approved plans. Should the Seller not be in a position due to outstanding municipal

requirements or any other factor out of the control of the Seller to commence with the

building of the unit within a period of 6 months from date of acceptance of this offer, the

Seller shall be entitled to give notice to this effect to the Purchaser, and unless the problem

is solved within 30 days from date of such notice, the Seller shall be entitled to cancel this

agreement. The purchase price of any new agreement between the Seller and Purchaser after

cancellation of this agreement shall be negotiated between the parties taking into account

any increase in building cost and demand in the market which will dictate the market value /

current selling price of the units.

4. PURCHASE PRICE

4.1 The purchase price (including VAT and the NHBRC Levy) of the UNIT set out in the covering

schedule shall be payable as follows:

4.1.1 a deposit as reflected in the Covering Schedule on the following conditions be paid by the

date stipulated in the Schedule or if no date is mentioned, within 7 days from date of request

thereof by the Seller’s Conveyancers. The Seller’s Conveyancer is authorised to invest the

amount for the benefit for the Purchaser unless otherwise agreed.

4.1.2 The Purchaser shall in respect of the balance of the purchase price on demand, provide

the SELLER'S CONVEYANCERS with cash or a bank or other guarantees acceptable to the

Seller and payable upon registration of transfer, provided that such guarantees shall not be

demanded until fulfilment of all suspensive conditions.

4.2 Any amount not paid on request from the Conveyancer shall from date of demand therefor bear interest at the rate of 4% above the prime overdraft rate charged by the Seller's bankers.

4.3 THE RATIFICATION ( “RAT”) CLAUSE: Prior to fulfilment of the suspensive conditions stipulated above or contained herein, the SELLER retains the right to continue marketing the PROPERTY which is the subject of this agreement and in the event of the SELLER receiving a satisfactory written offer free of suspensive conditions from a third party, he shall notify the PURCHASER in writing or by fax or by e-mail, furnishing the PURCHASER with a copy of such written offer and giving the PURCHASER 72 Hours (excluding Saturdays, Sundays and Public Holidays) notice to waive the suspensive conditions contained in this agreement in WHICH EVENT THE PURCHASER MUST PROVIDE PROOF OF GUARANTEES FOR THE FULL PURCHASE PRICE, and if the PURCHASER fails to give the SELLER written or faxed notice of such waiver AND PROOF OF GUARANTEES within such 72 hour period, the SELLER shall be entitled to cancel this agreement forthwith by giving written notice to the PURCHASER to that effect.

5. TRANSFER AND COSTS

5.1 The Purchaser undertakes to take transfer of the UNIT and GARAGE (if applicable)

simultaneously with the opening of the Sectional Title Register in respect of the UNIT and accepts that such transfer will be given in terms of the ACT with the benefit of and subject to all rights and duties of a sectional owner under the ACT.

5.2 Transfer shall be effected by the SELLER'S CONVEYANCERS and the Purchaser shall be responsible for the transfer costs, deeds office registration fees and disbursements.

5.3 The Purchaser shall be liable for any bond registration costs, interim interest on the bond (if applicable), disbursements and any financial institution fees in respect of the granting of the bond.

5.4 The Purchaser undertakes without delay to sign all documents required for effecting transfer and for registering any mortgage bond and upon demand to pay the aforesaid costs.

6. POSSESSION, OCCUPATION AND RISK

6.1 Vacant occupation of the UNIT shall be given to the Purchaser on the OCCUPATION DATE

provided, however, that should the Seller be unable for any reason to give occupation of the UNIT on the aforesaid date, then it shall advise the Purchaser of this fact in writing at least 7 DAYS prior to the said date. In such event the Purchaser shall accept occupation on the earliest date thereafter on which the

Seller is able to give it and the Purchaser shall not be entitled to any claim against the Seller in

respect of damages or otherwise.

6.2 In the event of any dispute as to when occupation of the Section is capable of being given, a

certificate by the Seller's architect or engineer or land surveyor, acting as an expert and not as an

arbitrator, that the Section is ready for beneficial occupation, notwithstanding that the Section as a

whole may not have been completed, shall be binding on the parties. The OCCUPATION DATE

shall under no circumstances be deemed to be postponed by reason of any improvements,

additions or alterations to be effected to the Section by the Purchaser. Should the Purchaser

refuse to take occupation when due, the Purchaser shall still be liable for the agreed

occupational rent.

6.3 The Purchaser acknowledges that on the OCCUPATION DATE the common property and other sections may be incomplete and that the Purchaser and other occupiers may necessarily suffer inconvenience from the noise and dust resulting from building operations and that the Purchaser shall have no claim whatsoever against the Seller by reason of any such inconvenience or any damages caused to person or property.

6.4 As from OCCUPATION DATE and pending transfer of the UNIT to the Purchaser and whether before or after the opening of a sectional title register in respect of the BUILDINGS:

6.4.1 The UNIT shall be at the Purchaser's sole risk and he shall be liable for all consumption

charges relating to the UNIT.

6.4.2 The Purchaser shall keep the Section in good order and repair. 6.4.3 The Purchaser shall permit the Seller or his agent at all reasonable times to enter and

inspect same. 6.4.4 The Purchaser shall comply with the conduct or management rules applicable to the

SCHEME.

6.4.5 The Purchaser shall pay to the Seller monthly in advance occupational rent in the sum set out in the covering schedule. Should registration occur prior to the end of any such monthly period, the Seller shall refund part of such payment proportionate to the unexpired portion of such monthly period.

6.5 Notwithstanding Clause 6.1 the Seller shall only be obliged to give occupation once all transfer documents have been signed and all costs and guarantees for the purchase price have been secured to the satisfaction of the SELLER'S CONVEYANCERS.

6.6 It is envisaged that the date of Occupation will precede the date of registration of the Unit in the name of the Purchaser.

6.7 Should the Purchaser for any reason delay the registration process, whether it be refusal or delay in signing any documents, meeting any requirements from the Purchaser’s bank, delay or refuse to uplift the retention on his/her bond, or any other reason, the Seller shall be entitled by giving notice via e-mail to that effect, that the occupational rent shall increase with 10% as from the next month following the existing month in which the notice was given.

7. PURCHASER'S ACKNOWLEDGMENTS

7.1 The Purchaser acknowledges that:

7.1.1 The Body Corporate will be established on the Opening of the Sectional title register and

all owners of unit’s part of the Scheme will become members of the Body Corporate.

7.1.2. The Seller/Developer will not appoint a Managing agent for the Scheme

and the members of the Body Corporate may elect to appoint a Managing agent after

Opening of the Sectional title scheme;

7.1.3 Should the Body Corporate elect not to appoint a Managing agent the Purchaser confirm

having been informed that in such an event the Purchaser will not be liable for payment of

any levies but the Purchaser will be liable for:

7.1.3.1 all rates and taxes and other municipal charges on the property as from date

of Occupation/Registration whichever is the earliest (The conveyancer opens

this account at the NMBM as part of the rates clearance process);

7.1.3.2 The Purchaser must adequately take insurance on the Unit/garage and his

undivided share in the common property against all risk and damages for at

least the replacement value thereof and the Purchaser shall take out

insurance for his / her / their moveable property from date of occupation;

7.1.3.3 The Purchaser must repair and upkeep his Unit and the Common property

pro rata with the owner of the other unit and are liable for the control

management and administration of the common property.

7.1.3.4 The Purchaser will be liable for his pro rata share of Water usage on the

Scheme (main erf) divided between the two owners of the Units as per the

amount of water used by each owner and indicated on the water metre

installed on the unit. It is the obligation of both owners of the units to open a

services account at the NMMM in the name of the Body Corporate on

registration of the units in the deeds office. If this account is not opened and

the services are unpaid, the Purchaser shall be barred from buying electricity

for the unit. The Purchaser undertakes to sign a Power of attorney and

suretyship form as required by the NMMM to open this water account and

undertake to pay the deposit for the opening of such account to the

Conveyancer or Developer on request or directly to the NMMM.

7.1.4.5 Each owner will be liable for his own electricity as per the pre-paid electricity

box installed.

7.2 If the Section forming part of the UNIT is not completed as at the date of the last signature hereof, the Purchaser agrees to accept delivery of the Section as shown and completed in accordance with the BUILDING PLANS.

7.3 The actual description of the SECTION shall be in accordance with the SECTIONAL PLANS to be drawn and with its Participation Quota and subject to any conditions of title applying to it. The said participation quota will be adjusted after the registration of each future phase.

7.4 The Purchaser's share in and his rights and occupation of the common property are subject to the exclusive use rights of other owners and rights conferred upon the owners and occupiers of

other units in accordance with the provisions of the conduct and management rules applicable to the scheme.

7.5 It will only be possible for the Seller to give transfer of the UNIT to the Purchaser after both Units

forming part of the Scheme is sold, completed and retentions uplifted and after the registration of

the SECTIONAL PLAN and the opening of a sectional title register. The Purchaser shall have no

rights against the Seller in respect of failure to transfer the UNIT should it not yet be possible as

herein explained. In that event, the Purchaser acknowledges that this agreement shall be on hold

and his rights shall be limited to those set out in this agreement and that he shall have no further

claim upon the Seller for damages or otherwise by reason of the failure to open the sectional title

register or to transfer the UNIT to the Purchaser in terms of the ACT.

7.6 The Purchaser accepts the UNIT subject to all the provisions of the ACT relating to the duties and

powers of the BODY CORPORATE as established by the Sectional Titles Act prescribed conduct

and management rules.

7.7 Upon transfer of the UNIT into the name of the Purchaser, the Purchaser shall become a member

of the BODY CORPORATE established for the BUILDINGS in terms of the ACT, and the Purchaser

acknowledges that:

7.7.1. Such BODY CORPORATE will be responsible for controlling and managing the

BUILDINGS by means of rules;

7.7.2 The conduct and management rules prescribed in the ACT apply and the Purchaser

acknowledges having been shown a copy of these and having read and understood

them. It is recorded that the management rules may not be amended or repealed

except by unanimous resolution, as defined in the ACT, of the BODY CORPORATE,

and the conduct rules without a special resolution, as defined in the ACT.

7.7.3 Pending establishment of the BODY CORPORATE or transfer of the UNIT the

Purchaser shall abide by the management and conduct rules as if he were a

member of the BODY CORPORATE.

7.8 The Purchaser shall not have any claim to be relieved of any obligation under this agreement or entitled to any remission of monies due in terms hereof by reason of any delay in obtaining approval of the SECTIONAL PLANS or opening of the sectional title register.

7.9 He is aware that the only exclusive use areas the Seller will record in the rules are garden areas. If

the Purchaser requires further exclusive use areas they can approach the BODY CORPORATE who can grant such exclusive use areas if authorised thereto by a unanimous resolution.

7.10 He shall permit the implied servitudes and access prescribed in terms of Sections 28(1)(b) and

28(2)(b) of the ACT and will comply with the provisions of Section 44(1) of the ACT. (See

Annexure "C" for extracts of The ACT).

7.11. He shall, in terms of the ACT, be entitled to the implied servitudes and access rights mentioned in

Section 28(1)(a) and to ownership of the common property as provided for in the ACT in

accordance with the Participation Quota.

7.12. Seller shall be entitled to vary the Plans and building materials to such extent as may, in the

Seller's opinion, be reasonably necessary to meet any requirements of any competent authority; or

meet any special features of the PROPERTY; or meet any special impediments such as water,

sewer or electrical lines either above or underground or under any rock or other soil condition; or

give effect to any changes in materials, finishes or fittings which the Seller considers to be

appropriate or which may not be readily available at the time due to shortage in supply of such

materials, finishes or fittings, without however detracting from the quality of the UNIT; or obtain the

approval of the SCHEME as a sectional title development and/or the opening of the sectional title

register. In the event of a dispute arising in connection with any of the matters referred to in this

clause, then the matter shall be referred to the Seller's architect or engineer, acting as an expert

and not as an arbitrator, whose decision shall be final and binding on both parties.

7.13 Should the Purchaser in any way delay the registration process he shall from the date when

a notification has been sent to him by the SELLER'S CONVEYANCERS setting out the cause

of the delay and until the date when the cause of the delay has ceased to exist, pay to the

SELLER'S CONVEYANCERS a penalty calculated for the relevant period on the purchase

price of the Unit at the overdraft rate charged by the Seller's bankers plus 4 %. Should the

delay further also cause a delay in the registration of the other unit forming part of the

Scheme, the Purchaser shall further be liable for a similar penalty calculated on the purchase

price of the other unit. Failure by the Purchaser to sign a Letter of Completion or Happy

Letter or failure by the Purchaser to authorise his bank to uplift the retention against his

bond would also constitute a delay in the registration process and be subject to the penalty

referred to above.

7.14 In the event of cancellation by the Purchaser or as a result of any default by the Purchaser, the

Seller shall be entitled to full compensation for improvements made by the Seller to the Property as

per the specifications requested by the Purchaser.

7.15 Should the PURCHASER notify the SELLER in writing of his intention to cancel the Agreement of

Sale after all Suspensive Conditions have been met but before any improvements have been made

to the Property, and should the SELLER accept the cancelation then the SELLER shall be entitled

to a reasonable cancelation fee in the amount of R10 000.00 (ten thousand rand) for administration

costs and expenses incurred by the SELLER for conclusion of the sale and reservation of the Unit.

7.16 Should any breach of this agreement by the PURCHASER or Cancelation of the Agreement or any

act or omission occasioned by the Purchaser result in the cancellation or lapsing of this agreement,

and should the SELLER be liable to make any payment whatsoever to the ESTATE AGENT in such

circumstances, the PURCHASER shall, without detracting from any other rights the SELLER may

have arising from such breach by the PURCHASER, be liable to refund to the SELLER an amount

equivalent to what is payable by the SELLER to the ESTATE AGENT, as per the ESTATE

AGENT'S mandate.

7.17 Should the PURCHASER wish to cancel this agreement for any reason other than as a result of any

breach of this agreement by the SELLER, then, without prejudice to the right of the SELLER to

refuse to accept such purported cancellation and to hold the PURCHASER to this agreement,

should the SELLER accept such cancellation by the PURCHASER, the SELLER shall be entitled to

recover the sum of R30 000,00 (thirty thousand rand) from the PURCHASER, over and above any

additional claim for damages which the SELLER may have against the PURCHASER.

8. UNDERTAKINGS AND WARRANTIES BY SELLER

The Seller undertakes and warrants: -

8.1 That it will take all reasonable steps necessary to obtain registration of The Sectional Plan(s) in

respect of the UNIT.

8.2. That should the UNIT not be completed at the time of sale the Seller will promptly provide

everything necessary for the construction of the UNIT and will construct the UNIT substantially in

accordance with the BUILDING PLANS and to the same standard in respect of the finishes as the

first townhouse which is built.

Such completion shall be deemed to have taken place when the Seller's architect or engineer,

acting as an expert and not an arbitrator, issues a certificate that they have been completed.

8.3 That provided that Purchaser has settled his account in full or has made arrangements, acceptable

to the Seller, for the settlement thereof it:

8.3.1 Undertakes to repair any roof leaks occurring within twelve (12) months after the OCCUPATION DATE referred to in the covering schedule.

8.3.2 Undertakes to repair any material or latent defects resulting from defective workmanship and arising within a period of ninety (90) days from the OCCUPATION DATE.

8.4 The Seller shall only be obliged to make one visit to undertake the said maintenance referred to

herein and the Purchaser shall prepare a list(s) of items required attention at expiry of the

ninety (90) day period which will be repaired at the discretion of the Seller within a reasonable

period of being advised of such defects. Where the list of items requiring alterations is not delivered

to the Seller within 90 days of the OCCUPATION DATE, the Seller shall have no obligation to rectify

such items. The Purchaser shall not be entitled to use their own contractors to attend to any repairs

and if they do, the Seller’s obligation to affect any repairs shall lapse.

8.5. The DEVELOPER is the Builder who will attend to the building of the Buildings on the Property and warrants that he is able and competent to do so.

8.6 The Developer/ Builder is registered with the National Home Builders Registration Council

(NHBRC).

9. ALIENATION AND ALTERATIONS BY PURCHASER

9.1 Prior to the opening of the sectional title register in respect of the UNIT and transfer of the UNIT to

the Purchaser he shall not, without the written consent of the Seller: 9.1.1 Sell, let or in any other manner whatsoever alienate any of his rights to the UNIT; or

9.1.2 Make any structural alterations or additions to the UNIT, alter the colour scheme or redecorate or make any other improvements or changes.

9.2 Any sale under clause 9.1 above shall be for cash and upon terms approved by the Seller, in writing, which shall include obligations

9.2.1 by the person to whom the Purchaser sells to abide by all the terms of this agreement and the annexures hereto as if he were the Purchaser in terms hereof;

9.2.2 by the Purchaser to use the SELLER'S CONVEYANCERS to effect transfer of the UNIT to his Purchaser.

10. BREACH OF CONTRACT

10.1 In the event of either party failing to carry out any of the terms and conditions of this agreement duly

and promptly, and failing to rectify such failure within 7 days of having been hand delivered or sent by registered post a notice to rectify such breach, the other party shall, at his option, be entitled:

10.1.1 To sue the defaulting party for specific performance of the terms and conditions of this

agreement; or

10.1.2 To cancel this agreement, by written notice posted to the defaulting party which shall be deemed to have reached the defaulting party 5 (five) days after it has been posted, and to

claim from the defaulting party payment of such damages as the aggrieved party may suffer as a result of the defaulting parties’ default and the consequent cancellation. Should the defaulting party be the Purchaser, then the Seller shall be entitled to apply any monies paid in terms of this agreement in reduction or in satisfaction of such damages and the Purchaser shall not be entitled to repayment of any portion of such monies until such time as the said damages shall have been assessed, and upon cancellation the Seller shall be entitled to immediate possession of the UNIT together with improvements thereon.

10.2 The Purchaser agrees that, in the event of the Seller instructing its attorneys and/or taking legal proceedings against the Purchaser pursuant to a failure by the Purchaser to fulfil any of its obligation in terms hereof, then the Purchaser shall pay all legal costs plus VAT incurred by the Seller in connection therewith as between attorney and own client, including collection commission laid down at the tariff rate applicable.

10.3. No indulgence which either party may grant the other party shall constitute a waiver of any rights of

the grantor.

11. DOMICILIUM

11. For the purpose of this agreement, the Purchaser and Seller choose their domicilium citandi et

executandi at the addresses specified on the covering schedule at which addresses any notices to

be given in terms of this agreement shall also be served.

12. GENERAL

12.1 The Purchaser agrees that, at the election of the Seller, the Port Elizabeth Magistrate's Court shall

have jurisdiction over any proceedings arising out of this Agreement.

12.2 No extension of time, concession or other indulgence which may be afforded by the Seller to the Purchaser shall be deemed to affect, prejudice or derogate from the Seller's rights in terms hereof.

12.3 The Purchaser acknowledges that this agreement constitutes the sole basis of the contract between himself and the Seller, and that he has not been induced to enter into this agreement by any representations or warranties other than contained herein, nor have any such representations been made by the Seller, his agent or anyone else on his behalf.

12.4 The Purchaser acknowledges that no variation or novation of the terms of this agreement shall be binding upon the parties unless reduced to writing and signed by the parties.

13. MORTGAGE BOND

13.1 The Purchaser or the estate agent or the Seller shall endeavour to raise on behalf of the Purchaser

a first mortgage bond on the security of the UNIT hereby sold for an amount of not less than the

amount specified on the covering schedule upon such terms and conditions applicable to financial

institution bonds.

13.2 Such mortgage bond shall be granted by a financial institution within 30 days of last signature

hereof or such extended period as the Seller in his sole discretion may allow. This condition shall

be deemed to be fulfilled upon notification by the Financial Institution of the PURCHASER or

his Agent of a quotation having being issued.

13.3 In the event of the bond not being granted as aforesaid, this sale shall be of no force and effect.

13.4 For the purpose of this clause the Purchaser undertakes to furnish all information necessary for the

completion of such application.

13.5 To facilitate the registration of the transfer which will be done in batches the parties agree that it is a

suspensive condition of the sale that the SELLER'S CONVEYANCERS attend to the

registration of the mortgage bond.

13.6 The parties herewith agree that the Purchaser shall use the services of the mortgage

originator appointed by the Seller to attend to the application of the mortgage bond on

his/her behalf.

14. AGENT'S COMMISSION

14. The Seller shall be responsible for payment of the agent’s commission arising out of this sale in the

amount set out in the covering schedule.

15. UNSOLD UNITS

15. Notwithstanding anything to the contrary herein contained, the Seller shall be deemed to be a

Purchaser in respect of each unsold unit in the SCHEME for the purposes of determining the

Seller's rights and obligations in respect of unsold units, and in particular for the purpose of

determining the Seller's voting rights and the Seller's share of insurance proceeds and of

compensation in respect of any expropriation.

16. ARBITRATION

16. Any difference or dispute between the parties in connection with the interpretation or application of the

provisions of this agreement or its breach or termination shall be referred to and be determined by the

informal arbitration in terms of this clause.

16.1 Any party to this agreement may demand that a dispute be determined in terms of this clause by

written notice given to the other party.

16.2 This clause shall not preclude any party from obtaining interim relief on an urgent basis from a court

of competent jurisdiction pending the decision of the arbitrator.

16.3 The arbitrator shall be agreed upon between the parties. Should the parties fail to agree on an

arbitrator within seven (7) days after the giving of notice in terms of clause 17.2, the arbitrator will be

appointed at the written request of any party to the dispute by the chairman for the time being of the

East Cape Society of Advocates (Port Elizabeth branch).

16.4 The arbitration shall be held: -

16.4.1 at Port Elizabeth;

16.4.2 in an informal manner without any pleadings and without it being necessary to observe the

strict rules of evidence;

16.4.3 as soon as possible with a view to it being completed within one (1) month from the date on

which the dispute is referred to the arbitrator;

16.4.4 in accordance with such procedures as the arbitrator may determine in his discretion

provided that such procedures shall be fair to both parties.

16.5 The arbitrator shall be entitled to investigate or cause to be investigated any matter which he

considers necessary or desirable in connection with the dispute and for that purpose shall have the

widest powers of investigating all the relevant books and records of the parties to the dispute,

including the right to make copies and to have such records and books produced or delivered at any

reasonable place required by them for the aforesaid purpose.

16.6 The arbitrator shall decide the dispute in accordance with South African law.

16.7 The arbitrator shall be entitled to make such award, including an award in respect of costs, as he

may deem fit provided that the arbitrator shall be required to furnish written reasons.

16.8 The decision of the arbitrator shall be final and binding on both parties, save in the event of it being

established that: -

16.8.1 the arbitrator failed to apply his mind properly to the matter;

16.8.2 the arbitrator acted in bad faith;

in which event the decision of the arbitrator shall be subject to review.

16.9 The decision of the arbitrator may be made an order of court by either of the parties at the cost of

such party.

16.10 The provisions of this clause are severable from the rest of this agreement and will remain in effect

notwithstanding the cancellation, termination or invalidity for any reason of this Agreement.

16.11 It is agreed that should either party elect to do so they may choose to institute action or seek

legal relief through a court of law in which instance the parties agree to the Jurisdiction of the

Magistrate’s Court of Port Elizabeth.

17. SALE OF PURCHASER'S PROPERTY (if applicable)

17.1 This sale is subject to the sale, fulfilment of suspensive conditions and receipt of acceptable

guarantees for the purchase price of the Purchaser's property reflected on the covering schedule.

17.2 In the event that the Purchaser's property has not been sold and/or the suspensive condition therein

fulfilled and/or guarantees for such purchase price received by the transferring attorneys within

forty-two (42) days of the date of this sale, the Seller shall be entitled to cancel this sale.

17.3 To facilitate transfer of both properties, the Purchaser hereby grants the Seller the right:

17.3.1 To appoint an agent with sole marketing rights for the sale of the Purchaser's property at 5%

plus VAT or such lesser fee as may subsequently agree upon by the parties.

17.3.2 To nominate the conveyancer who will attend to the transfer of the Purchaser's property.

17.3.3 Irrevocably to retain a sufficient amount of such proceeds to enable the

SELLER'S CONVEYANCERS to pay the purchase price to the Seller on registration of the

UNIT.

18. PERSONAL LIABILITY

18.1 In the event that the Purchaser is a trust, company or close corporation, the signatory hereof on

behalf of the trust, company or close corporation agrees that by his signature hereof he shall be liable

personally if the trust, company or close corporation breaches any terms of this agreement or was not duly

authorised to enter into this agreement.

19. SUSPENSIVE CONDITIONS

19.1 This sale is subject to:

the approval by the Nelson Mandela Municipality of the BUILDING PLANS in respect of the SCHEME.

19.2 In the event that the above condition is not fulfilled, the sale shall lapse.

19.3 These conditions are inserted for the benefit of the Seller and may be waived by the SELLER.

20. DIRECT MARKETING AND COOLING OFF

20.1 In terms of section 16 of the Consumer Protection Act, if this transaction has resulted from direct

marketing, the Purchaser has the right to cancel this agreement without reason or penalty by written

notice within 5 (FIVE) business days after the agreement was concluded, or within 5 (FIVE) days

after delivery of the property.

20.2 The Seller is however unable to accept the risk of cancellation without reason within 5 (FIVE)

business days of delivery as the success of the development is dependent upon the enforceability

of the agreement of sale and the transfer of the units being passed to the Purchasers shortly after

delivery.

20.3 This is because the Seller will have obtained development finance on the strength of binding pre-

sales. In addition, if the transaction is cancelled after delivery the Seller will be left to carry the

holding cost of the unit for an uncertain period whilst looking for a replacement Purchaser. This has

the potential to create substantial losses for the Seller and place the development in jeopardy for

other Purchasers.

20.4 The Seller is therefore not prepared to enter into this agreement with any Purchaser if the

transaction has resulted from direct marketing.

20.5 The Purchaser therefor warrants that this transaction has not resulted from direct marketing

and the Seller enters into this agreement relying upon such a warranty.

20.6 If after delivery, the Purchaser is successful in cancelling this agreement by relying upon the

right of cancellation flowing from the direct marketing provisions of the Consumer

Protection Act, the Purchaser shall be liable for the damages suffered by the Seller as a

result thereof on the basis of the Purchaser’s breach of warranty.

21. SECTION 29A OF THE ALIENATION OF LAND ACT (NO. 58 OF 1981)

21.1 If (and only if) Section 29A of the Alienation of Land Act (No. 68 of 1981) is applicable to this agreement, then, notwithstanding any other clause of this agreement to the contrary, the PURCHASER has the right to revoke any offer made in terms hereof or to terminate this agreement, by notice, to be delivered to the SELLER or the agent within 5 (five) days after the PURCHASER has signed this agreement. Such 5 (five) day period is calculated with the exclusion of the day upon which the PURCHASER signed this agreement and of any Saturday, Sunday or public holiday. Should the PURCHASER wish to exercise the aforesaid right to revoke, the notice must therefore be delivered to the SELLER on or before expiry of such 5 (five) day period.

21.2 Any notice of revocation in terms of 22.1 above shall have no effect unless it:

21.3 is signed by the PURCHASER or the PURCHASER’s agent acting on the PURCHASER’s written authority;

21.4to this agreement as the offer or agreement that is being revoked or terminated, as the case may be; and

21.5 is unconditional.

22. ACKNOWLEDGMENT IN TERMS OF SECTION 49 OF THE CONSUMER PROTECTION

ACT NO 68 OF 2008 (CPA)

The Purchaser hereby acknowledges that the above Agreement contains provisions which are of

the nature referred to in Section 49 of the CPA.

The Purchaser confirm that the estate agent representing him/her has explained all the terms of this

agreement in detail. The PURCHASER'S attention is specifically drawn to this clause in terms of

Section 49 of the Consumer Protection Act and confirms that the agent has explained the

consequences of this clause in detail.

The Purchaser hereby acknowledges that prior to signature of this Agreement he was granted

adequate opportunity to receive and comprehend the Agreement, and that the understood the

content thereof and that the Seller and/or his Agent complied with the provision of Section 49 of the

CPA.

PLEASE DO NOT SIGN THIS AGREEMENT UNTIL YOU HAVE HAD A PROPER

OPPORTUNITY TO READ AND UNDERSTAND THE AGREEMENT. IF YOU DO NOT

UNDERSTAND ANY PART OF THE AGREEMENT ASK FOR AN EXPLANATION.

SIGNED by the PURCHASER at PORT ELIZABETH on _____________

AS WITNESSES:

1. _________________________ _____________________ Purchaser 1

2. __________________________ _____________________ Purchaser 2

SIGNED by the SELLER AND DEVELOPER at PORT ELIZABETH on ________________

AS WITNESSES:

1. _________________________

2. __________________________ ___________________ Seller

(Duly authorised thereto and accepting all terms and conditions and liabilities in

terms hereof referring to the SELLER)

DOCUMENTS REQUIRED FOR HOME LOAN APPLICATION:

1. UNMARRIED PERSON

Identity Document

Proof of address less than 3 months old (cell phone, clothing account)

Income Tax Number

Copy of Bank Statement confirming banking details

2. MARRIED IN COMMUNITY OF PROPERTY – HUSBAND AND WIFE EACH TO PROVIDE:

Identity Document

Proof of address less than 3 months old (cell phone, clothing account)

Income Tax Number

Copy of Bank Statement confirming banking details

Marriage Certificate

3. MARRIED OUT COMMUNITY OF PROPERTY – HUSBAND AND WIFE EACH TO PROVIDE:

Identity Document

Proof of address less than 3 months old (cell phone, clothing account)

Income Tax Number

Copy of Bank Statement confirming banking details

Marriage Certificate

Copy of Antinuptial contract

SALARIED WITH NO OVERTIME OR COMMISSION

Salary slips – latest 3 months

Bank statements – latest 3 months with the Bank stamp on each page. No internet statements.

SALARIED WITH OVERTIME AND COMMISSION

Salary slips – latest 6 months

Bank statements – latest 6 months with the Bank stamp on each page. No internet statements.

SELF EMPLOYED

Letter from bookkeeper to confirm monthly gross income

Latest 3 years signed financials

Up to date signed management accounts

Bank statements – latest 6 months with the Bank stamp on each page. No internet statements. Personal account.

Bank statements – latest 6 months with the Bank stamp on each page. No internet statements. Business account.

IT34 (Income declared to SARS)