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Bond Renewal Clauses

Category Hendra Knows

As a homeowner selling their property , one needs to be aware of the implications of all of the clauses in a Sale Agreement.

One such clause relates to the suspensive condition to acquire a home loan or bond approval by the Purchaser.

It is often the case that many standard sale agreements will have a such suspensive condition that the sale is suspensive upon the Purchaser getting a home loan approved by a fixed future date .

Sometimes the clause will read that at this fixed future date the bond approval period will automatically be extended by mutual agreement of the parties.

This is allowed in law, however, it often imposes an undue waiting period on the Seller who perhaps has received a back up offer and wants to accept same but now has to wait until this extra period has expired .

Our advice at Hogarty Attorneys is always an old latin expression "caveat lector" or "let the reader beware" and if you signed it - you read it! So if you don't feel confident in an area, let your attorney read over the clauses and make you aware of the pitfalls.

Contact Ryan Hogarty on 0794920063 or write to me on ryan@hogarty.co.za

Author: Ryan Hogarty

Submitted 11 Apr 19 / Views 415