The Seller Financing Real Estate Contract is utilized in South African property transactions where traditional bank financing is either not preferred or not available. This document is essential when property sellers agree to finance the purchase price for buyers, effectively acting as the mortgagee. The agreement must comply with South African legislation, particularly the National Credit Act 34 of 2005 and the Alienation of Land Act 68 of 1981. It includes comprehensive terms covering property transfer, financing conditions, security arrangements, and ongoing obligations. This type of contract is particularly relevant in scenarios involving private property sales, development properties, or commercial real estate transactions where flexible financing arrangements are desired. The document provides security for both parties while structuring the financial and legal aspects of the property transfer and subsequent payment arrangements.

1. Parties: Identification and details of the Seller/Credit Provider and Purchaser/Credit Receiver

2. Background: Context of the transaction and confirmation that the Seller agrees to sell and the Purchaser agrees to purchase the property with seller financing

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the property including erf number, physical address, and extent

5. Purchase Price: Total purchase price and breakdown of any deposits or down payments

6. Financing Terms: Details of the seller financing arrangement including principal amount, interest rate, term, and payment schedule

7. Security Arrangements: Provisions for securing the loan through property mortgage or other means

8. Transfer and Registration: Process and requirements for property transfer and registration of security

9. Warranties and Representations: Warranties by both parties regarding property condition, authority to enter agreement, etc.

10. Insurance and Maintenance: Requirements for property insurance and maintenance during the finance period

11. Default and Remedies: Consequences of default and available remedies for both parties

12. Costs and Taxes: Allocation of transaction costs, transfer duties, and ongoing property taxes

13. General Provisions: Standard contract clauses including notices, amendments, governing law, etc.