Industrial Property Checklist

November 15, 2017
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What to look for in a deed of sale when buying an industrial or commercial property.

Check the following:

    • That both the selling entity and purchasing entity are correctly stated
    • If it is a company then it should state (Pty) Ltd after the name.
    • The company registration number needs to be inserted.
    • If it is a trust or CC then the IT number or CC registration number needs to be recorded.
    • If both parties are VAT registered, their VAT registration numbers need to be included.
    • The physical addresses, email addresses and contactable telephone/cell numbers need to be inserted alongside each entity
    • The description of the property. This can be obtained by checking the Title Deed which your agent or attorney can verify via the Windeed portal
    • The purchase price and when the deposit is payable and that the said deposit will earn interest until the transfer is registered.
    • The purchase price and when the deposit is payable and that the said deposit will earn interest until the transfer is registered.
    • Are there any onerous conditions such as servitudes running across the property? This needs to be checked in the diagram Title Deed.
    • Who is responsible for payment of the agent’s commision? Usually, the Seller is.
    • The COC ( Certificate of Compliance – Electrical) is issued prior to transfer. This is a legal requirement.
    • In the City of Cape Town, a plumbing certificate is also required.
    • If there are any suspensive conditions contained in the agreement such as the sale being subject to finance, a due diligence period or any other suspensive conditions that need to be fulfilled by either party, then ensure that these are fulfilled with a specified period that needs to be recorded in the Deed of Sale.
    • If an extension is needed, it needs recorded in writing and signed by both parties to keep the agreement alive.
    • It is important to keep track of the dates to avoid the agreement becoming null and void.
    • Make sure the offer is accpeted within the time frame recorded in the Deed of Sale and that it is signed by both parties to ensure it’s validity.