Document background
The Instalment Sale Agreement Immovable Property is a crucial document in South African property transactions where traditional mortgage financing isn't utilized or preferred. This agreement type is specifically regulated under the Alienation of Land Act 68 of 1981 and must comply with the National Credit Act 34 of 2005. It's commonly used when purchasers require extended payment terms directly from the seller, offering an alternative to traditional bank financing. The agreement must be in writing, contain prescribed information about the property and payment terms, and be signed by all parties. It provides a structured framework for the gradual transfer of property ownership while protecting both seller and purchaser interests through clear terms regarding possession, maintenance, insurance, and eventual transfer. The document becomes especially relevant in developer sales, private property transactions, and cases where conventional mortgage financing may not be suitable.
