In terms of the law of contract all agreements (contracts), whether reduced to writing, or not (verbal contracts) are equally enforceable in law. However, contracts of sale of immoveable property are one of few contracts that, by law, must be recorded in writing (Alienation of Land Act 68/1981).
Furthermore, according to the Alienation of Land Act above, contracts of sale of immoveable property must contain all material terms relating to the sale of the said property (i.e. description of the land sold, the identity of the parties to the contract, the purchase price etc), as well as all the (suspensive) conditions on which terms the said property is being sold (i.e. bond approvals etc). Thus, the contents of the contract (deed of sale) will depend on the individual circumstances of each case.
Nevertheless, many estate agents often use standard offer to purchase documents, which upon signature thereof (by both seller and purchaser), becomes a valid and legally binding deed of sale.
Therefore, in the event that either party does not comply with the terms of the deed, such non-compliance is a breach of contract. In such a case the innocent party can rely on a number of legal remedies in order to rectify the breach, including but not limited to, claiming damages from the party (who is in breach).
Thus, it is of the utmost importance that the deed of sale is a custom-made contract (drafted by an attorney) to suit the needs and requirements of both the seller and purchaser. Furthermore, it is also of the utmost importance that both parties are aware of and understand the contents of the deed of sale, in order to avoid unnecessary disputes.
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