Deed Of Sale With Assumption Of Mortgage Template for South Africa

The Deed of Sale with Assumption of Mortgage is a specialized legal document used in South African property transactions where the purchaser takes over the seller's existing mortgage instead of obtaining new financing. This arrangement can be advantageous when interest rates have increased since the original mortgage was issued or when the purchaser wants to avoid new loan origination fees. The document must comply with various South African legislation including the Alienation of Land Act, National Credit Act, and Banking Act. It contains detailed provisions about the property transfer, existing mortgage terms, purchaser qualification requirements, and the specific process for transferring mortgage obligations. This type of agreement is particularly relevant in cases where the existing mortgage terms are favorable or when streamlining the property transfer process is desired.

1. Parties: Identification of the Seller, Purchaser, and current Mortgagee (banking institution)

2. Background: Context of the sale, existing mortgage details, and intention to transfer property with mortgage assumption

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Purchase Price, Mortgage Amount, Transfer Date

4. Sale of Property: Details of the property being sold and confirmation of the sale agreement

5. Purchase Price: Total purchase price, payment terms, and breakdown of equity and assumed mortgage amounts

6. Property Description: Detailed legal description of the property, including erf number, size, and location

7. Mortgage Assumption Terms: Terms and conditions of the mortgage assumption, including outstanding amount, interest rate, and payment terms

8. Conditions Precedent: Conditions that must be met before the agreement becomes effective, including mortgage holder's approval

9. Transfer and Registration: Process and requirements for property transfer and mortgage assumption registration

10. Warranties and Representations: Warranties by both parties regarding property condition, mortgage status, and authority to enter agreement

11. Costs and Fees: Allocation of transfer costs, legal fees, and other associated expenses

12. Risk and Possession: Transfer of risk and possession arrangements

13. Breach and Remedies: Consequences of breach and available remedies to parties

14. General Terms: Standard legal provisions including notices, entire agreement, and governing law

15. Execution: Signature block and execution requirements