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OFF-PLAN HOUSE purchasing. congratulations to those purchasing houses in this economy especially women and 'chamas' however there are a few red flags people are ignoring. here is a thread of a few.
1. “Completion Date” shall mean the date falling Seven (7) working days after receipt by the Purchaser’s Advocates of the Architect’s Certificate of Practical Completion. If you see this clause, demand to have a specific date, e.g 7/0/2020 (cont)
Put specific date of completion, we don’t want an issue where the vendor does not come through in construction and expects you to wait until he finishes construction, yet you already borrowed see linkhttps://twitter.com/Pombembaya/status/1301103279280214017?s=20
2."Deposit" ensure the advocate doesn't release that money to the developer and holds it as a stakeholder. This will ensure that the sums are held in trust for either party so that if the vendor defaults, the you will get repaid your money.
3. "interest" some contract charge interest in default by the purchaser This is because the provision of forfeiture of the deposit is meant to cushion the vendor from any losses that may be incurred as a result of an aborted sale.(cont)
Where no loss is incurred but gains result, it will be inequitable for the vendor to retain the purchaser’s deposit as this would be synonymous with unjust enrichment which equity shall not allow.
4."Default by vendor" a lot of these contracts dont have this clause, or give you the opportunity to terminate the agreement when the vendor defaults when they dont complete the project on the agreed completion date. (cont)
Add these clauses: 1.the Vendor returns the Deposit to the Purchaser together with Accrued Interest; 2.The Purchaser shall return any documents he received from the Vendor 3. Will, at the Vendor’s expense, to cancel any entry made on the register. (cont)
5.The Purchaser retains their other rights and remedies at law and in equity but upon demanding the refund of the Deposit & shall not have a claim for specific performance
