BANK’S LETTER ENOUGH FOR BOND CLAUSE FULFILMENT OR MUST QUOTATION BE PROVIDED?
Phepeng and Another v Estate Late Ame Combrinck and Others (792/2017)  ZAFSHC 54 (23 March 2017)
Clauses making a transaction subject to a buyer’s successful loan application are common features in sale agreements of land. The wording in these clauses often rings similar, requiring a letter of offer, a quotation and a pre-agreement to be provided as proof that the loan has been obtained. This matter dealt with an agreement that required such documentation to be obtained by the purchaser, with no obligation that these had to be provided to the seller or his agent. As such, communication by the purchaser to the seller, accompanied by the bank’s letter confirming that it approved the loan application was regarded as adequate to fulfill the suspensive condition. The seller’s argument that the sale had lapsed as no quotation and a pre-agreement were provided was rejected.
STBB’s STSMA REFERENCE GUIDE
In this, the twenty-second set of notes for your STSMA Reference Guide, regulation 6 of the Act is discussed.
Regulation 6 (Notifications)
(N.B. Print in landscape)