APARTMENT NO.
ACKNOWLEDGEMENT
1.
It is recorded that OCEANS UMHLANGA (PTY) LTD, Registration Number 2011/011731/07 (hereinafter referred to as “the SELLER”) and (hereinafter referred to as “the PURCHASER”) intend entering into an OPTION AGREEMENT in terms of which the SELLER, shall grant the PURCHASER an option until Apartment No.
2.
H
on the
2016, to purchase the property described as proposed
Oceans Umhlanga (which unit is still to be constructed).
In consideration for granting the option the PURCHASER shall pay to the SELLER an amount of R30 000.00 (THIRTY THOUSAND RAND) plus Value Added Tax thereon, prior to the date of signature of the OPTION AGREEMENT. The aforesaid amount of R30 000.000 (THIRTY THOUSAND RAND) plus Value Added Tax thereon, shall be deducted from the purchase price of the PROPERTY, in the event of the PURCHASER exercising the option, however shall not, save in the circumstances referred to in paragraph 3 below, be refundable under any circumstances whatsoever, should the PURCHASER not exercise its option (and shall be deemed to be consideration payable by the PURCHASER to the SELLER in respect of the granting of the option).(The SELLER’S bank account details are as follows, namely: Oceans Umhlanga (Pty) Ltd; ABSA Bank; Branch Code: 632005; Account Number: 4088 555 009).
3.
In the event of the PURCHASER exercising its aforesaid option, however, the subsequent contract of sale lapsing as a consequence of the conditions precedent (outlined in paragraph 8 of the contract of sale), not being met timeously, then in that event, the aforesaid amount of R30 000.00 (THIRTY THOUSAND RAND) (plus Value Added Tax thereon), shall be refunded by the SELLER to the PURCHASER within a period of 7 (SEVEN) days of the contract of sale so lapsing (it being specifically recorded, however, that the PURCHASER shall not be entitled to the payment of any interest on the aforesaid amount). The PURCHASER specifically acknowledges that it understands that the aforesaid amount of R30 000.00 (THIRTY THOUSAND RAND) (plus Value Added Tax thereon), having been paid by the PURCHASER to the SELLER directly, is not held in trust by the CONVEYANCERS and the CONVEYANCERS shall have no obligation of any nature whatsoever to the PURCHASER in regard to this amount.
4.
The PURCHASER acknowledges that it can only exercise its aforesaid option by both : 4.1
paying a deposit of R100 000.00 (ONE HUNDRED THOUSAND RAND) to the CONVEYANCERS (namely Garlicke & Bousfield Inc) by way of Electronic Funds Transfer and
4.2 delivering to the SELLER the original of the CONTRACT OF SALE duly signed by the PURCHASER, together with proof of the aforesaid deposit payment both by no later than the date and time referred to in paragraph 1 above. 5.
Insofar as the provisions of Section 49 of the Consumer Protection Act No.68 of 2008 (hereinafter referred to as “the ACT”) apply to the provisions of the aforesaid CONTRACT OF SALE, the PURCHASER specifically acknowledges that: (a)
the provisions of paragraphs 2.3, 4.2, 4.3 and 8.1 of the CONTRACT and 3.3, 3.4, 3.6, 3.10, 3.11, 3.13, 4.2.2, 5.1, 5.2.6, 5.2.7, 5.3, 6.3, 7.2.1, 7.4, 12 and 23.2, of the CONDITIONS OF SALE to the CONTRACT purport to limit the risk or liability of the SELLER and/or the ASSOCIATION;
(b) the provisions of paragraphs 9.1 and 13 of the CONDITIONS OF SALE to the CONTRACT, impose an obligation on the PURCHASER to indemnify the SELLER; (c)
the provisions of paragraphs 2.2 and 3.1 of the CONTRACT OF SALE and 3.6, 5.1, 7.1, 7.7, 8 and 12 of the CONDITIONS OF SALE to the CONTRACT, constitute an acknowledgement of fact by the PURCHASER;
Notwithstanding the aforesaid, the SELLER and the PURCHASER acknowledge and agree that all the terms and conditions of the CONTRACT are material, however, in an endeavor to comply with the provisions of Section 49 of the ACT, insofar as it may apply to the provisions of the CONTRACT OF SALE, the aforesaid specific acknowledgements have been made.
Purchaser Initial
Witness Initial
1
Seller Initial
Witness Initial
6.
The PURCHASER acknowledges that it understands the English language and considers itself fluent therein.
7.
The PURCHASER acknowledges that it was previously forwarded a copy of the OPTION AGREEMENT and CONTRACT OF SALE, and that it has had an opportunity to carefully read and consider the provisions of the OPTION AGREEMENT and the CONTRACT OF SALE and that it has been free to secure independent legal advice in respect of the provisions of same. In addition, the PURCHASER acknowledges that the SELLER undertook that the SELLER or the CONVEYANCERS would explain any provision of the CONTRACT OF SALE which the PURCHASER may not have understood fully and, to the extent that the PURCHASER made the SELLER aware of any provisions of this CONTRACT it did not understand, such provisions were fully explained to the PURCHASER.
8.
The PURCHASER acknowledges that the CONVEYANCERS are not able to invest the amount referred to in 4.1 above (nor any amount paid into trust with the CONVEYANCERS by the PURCHASER), until such time as the PURCHASER has complied with all the requirements of the Financial Intelligence Centre Act No. 28 of 2001 and has signed the necessary investment mandate (see annexures “G” and “I” to the CONTRACT OF SALE in this regard).
9.
The PURCHASER acknowledges that while the PURCHASER may utilize the proceeds of a loan to finance the purchase of the PROPERTY, the CONTRACT OF SALE (which will result from the PURCHASER exercising its option as contemplated in paragraph 4 hereof) will not be, in any way, subject to, or conditional upon, the PURCHASER being granted a loan.
10.
The PURCHASER acknowledges that its rights in terms of the OPTION AGREEMENT (and the resulting CONTRACT OF SALE should the option be exercised by the PURCHASER) may not be transferred or ceded by the PURCHASER to any third party. In addition, the PURCHASER acknowledges that it is not entitled to sell the unit in the SCHEME it purchases prior to taking transfer of same.
11.
In no way detracting from the generality of the aforesaid, the PURCHASER’S attention is drawn to the fact that no unit in the SCHEME may be let for a period of less than 14 (FOURTEEN) days save with the prior written consent of the Trustees of the BODY CORPORATE and, during the Development Period, the SELLER.
12.
The PURCHASER acknowledges that the OCEANS UMHLANGA marketing material does not constitute part of the contract of sale and the contents thereof is not warranted by the SELLER and is subject to change. As a consequence, the PURCHASER shall not rely on the contents of any marketing material in entering into the OPTION AGREEMENT.
13.
While is shall be incumbent upon the PURCHASER to familiarize itself with the rules of the SCHEME, (which the PURCHASER acknowledges will vary from the standard rules, which form part of the regulations to the Sectional Titles Act 1986 (as amended)), prior to exercising its option to purchase the unit in question (it being recorded that a full set of the rules shall be annexed to the OPTION AGREEMENT), the following important aspects of the rules are specifically brought to the PURCHASER’S attention, namely:
13.1 the liability of owners to make a contribution to the expenses of the Body Corporate will be modified as follows, namely: “Where expenses of the body corporate are directly attributable to one component (it being recorded that the SCHEME will consist of three components namely, the commercial, hotel and residential), those expenses shall be shared by owners of units in that particular component, in accordance with the participation quota of units in that component. It is recorded that the aforesaid expenses shall include, but necessarily be limited to, the following, namely: 1. Maintenance of the common property; 2. Security costs; 3. Water and electricity utilized; 4. Managing agents cost; 5. Pests and hygiene and 6. cleaning
Purchaser Initial
Witness Initial
2
Seller Initial
Witness Initial
The general expense of the Body Corporate not attributable to any particular component (which shall include, but not be limited to, auditing fees, bank charges and post and petties), shall be shared by all owners in the SCHEME in accordance with the participation quota of the SCHEME. 13.2 no dogs, cats or any other pets may be kept within the SCHEME (save that in exceptional circumstances, such as a blind person requiring the assistance of a guide dog, the body corporate may give permission for a dog to be kept in these circumstances, subject to conditions it may impose) and 13.3 such time as the SELLER no longer owns a unit in the SCHEME or the right to extend the SCHEME by the erection of a unit as contemplated in Section 25 of the Sectional Titles Act 1986 (as amended)).
Signed by the PURCHASER at DURBAN on
AS WITNESSES:
Signed by the SELLER at DURBAN on AS WITNESSES:
2016. Time:
H
min
AS PURCHASER:
2016. OCEANS UMHLANGA (PTY) LTD herin represented:
By Pithabram Naicker he being duly authorised hereto by a resolution of directors.
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