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Commercial Real Estate Sales Contract Template for South Africa

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Key Requirements PROMPT example:

Commercial Real Estate Sales Contract

"I need a Commercial Real Estate Sales Contract for a multi-tenant retail property in Cape Town, South Africa, which includes provisions for transferring existing lease agreements and manages the transition of tenant deposits, with the transfer expected to complete by March 2025."

Document background
The Commercial Real Estate Sales Contract serves as the primary legal instrument for transferring ownership of commercial properties in South Africa. This document is essential when businesses or individuals are engaging in the purchase or sale of commercial properties such as office buildings, retail spaces, industrial facilities, or mixed-use developments. It must comply with South African property law, particularly the Alienation of Land Act 68 of 1981, the Deeds Registries Act 47 of 1937, and relevant commercial legislation. The contract includes comprehensive provisions covering property description, purchase price, payment terms, transfer conditions, warranties, compliance requirements, and risk allocation. It's designed to protect both parties' interests while ensuring a smooth property transfer process within the South African legal framework.
Suggested Sections

1. Parties: Identifies and provides full details of the Seller and Purchaser, including registration numbers for companies or ID numbers for individuals

2. Background: Sets out the context of the sale and confirms the Seller's ownership of the property

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes rules of interpretation

4. Sale of Property: Details the agreement to sell and purchase the property, including the physical description and title deed information

5. Purchase Price: Specifies the purchase price, payment terms, and deposit requirements

6. Payment Terms: Details the method and timing of payments, including deposit handling and guarantee requirements

7. Transfer and Registration: Outlines the process and timing for property transfer and registration in the Deeds Office

8. Transfer Costs and Charges: Allocates responsibility for transfer costs, duties, and other charges

9. Possession and Risk: Specifies the date of possession and transfer of risk, including provisions for rental if applicable

10. Seller's Warranties: Lists the Seller's warranties regarding the property's condition, title, and any encumbrances

11. Property Condition: Describes the current condition of the property and any agreed repairs or improvements

12. Compliance Certificates: Lists required compliance certificates and responsibilities for obtaining them

13. Risk and Insurance: Addresses insurance requirements and risk allocation before transfer

14. Breach: Details consequences and remedies for breach of contract

15. Dispute Resolution: Outlines the process for resolving disputes

16. Notices and Domicilia: Specifies how and where notices must be delivered

17. General Terms: Includes standard legal provisions such as whole agreement, variation, and governing law

Optional Sections

1. Tenant Rights and Obligations: Required when the property is currently leased to tenants, addressing their rights and the transfer of lease agreements

2. VAT Provisions: Required when the transaction is subject to VAT, particularly for going concern sales

3. Development Requirements: Needed when the property requires specific development or modifications before or after transfer

4. Environmental Provisions: Required when there are environmental concerns or requirements related to the property

5. Agent Commission: Included when a real estate agent is involved in the transaction

6. Due Diligence: Required when the sale is subject to a due diligence investigation period

7. Suspensive Conditions: Included when the sale is subject to specific conditions such as financing or zoning approvals

8. Property Management: Required when interim property management arrangements are needed

9. Special Conditions: For any unique requirements specific to the transaction

Suggested Schedules

1. Property Description Schedule: Detailed description of the property including diagrams, title deed information, and zoning details

2. Fixture and Fittings Schedule: List of included and excluded fixtures, fittings, and equipment

3. Financial Schedule: Detailed breakdown of the purchase price, payment terms, and costs

4. Existing Lease Agreements: Copies and summaries of current lease agreements if applicable

5. Compliance Certificates Schedule: List and copies of required compliance certificates

6. Due Diligence Checklist: List of items to be verified during due diligence

7. Property Condition Report: Detailed report on the property's condition with photographs

8. Zoning and Land Use Certificates: Relevant zoning and land use documentation

9. Building Plans and Approvals: Approved building plans and municipal approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses



































Relevant Industries

Real Estate

Commercial Property Development

Retail

Industrial Manufacturing

Hospitality

Healthcare

Financial Services

Professional Services

Logistics and Warehousing

Office Space Management

Mining and Resources

Agriculture

Relevant Teams

Legal

Finance

Real Estate

Operations

Risk and Compliance

Property Management

Asset Management

Business Development

Facilities Management

Corporate Services

Investment

Acquisitions and Disposals

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Property Manager

Real Estate Development Manager

Legal Counsel

Property Investment Manager

Facilities Manager

Asset Manager

Property Acquisition Manager

Risk Manager

Commercial Director

Operations Manager

Property Portfolio Manager

Company Secretary

Finance Director

Business Development Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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