Vehicle Sale Template

[sterne.law@gmail.com]

Greetings my fellow TFSA'ers.

I am designing templates.
The challenge is to make it easy for the user (presuming they have little knowledge of subject matter) yet vague enough to be flexible.

Appreciate your thoughts in this regard, if templates should have notes, instructions

[Justloadit]

On the seller's rights on breach of contract, what if the Purchaser moves or does not notify the seller of his new address or even provides an incorrect address, or simply disappears before full payment, meaning that there will be no acknowledgement of receipt of the notice?

What if the purchaser defaults and con not pay the full amount as requested in the breach?

[sterne.law@gmail.com]

Default, seller take possession as per normal remedies. There is scope for clauses to say payments forfeited.
Seller keeps papers and is still owner, so that allows for certain powers.

As to moving, it may be a good idea to put a tracker and keeping sellers name.

[Justloadit]

Happy with your reply, my problem in the past was tracking the vehicle down. Another instance - when is the vehicle transferred to the new owner?

My experience, while holding onto ownership, was that the purchaser rolled up a number of hefty traffic fines during the period before full payment, an in one instance even managed to get a summons to a dorpie in the middle of nowhere due to speeding. Whilst I did an affidavit stating that I was not the driver, and had it couriered, it was still a frightening experience if it was not accepted by the local court.

Another issue to take into consideration is E-Tolls as well.

[Dave A]

The solution to the fines etc. problem might be to do it the way the banks do it - transfer title to the purchaser, but remain as owner until the debt is paid.

Question - with it being effectively an instalment sale agreement, would this arrangement require the seller to become registered as a credit provider in terms of the National Credit Act nowadays?

p.s love the template concept, Anthony. And a great example.

[sterne.law@gmail.com]

The contract is structured so that ownership vests with seller and he keeps papers.
An interesting point - ownership and possession are 2 different things.
You might possess but not own and vice versa.
So ownership stays with seller (like the bank would be), and only passes on final payment.

In the absence of a fee or charge, it escapes the definition of a credit agreement.

Of course larger transactions will possibly have charges .
The other issue is the requirement to register which deals with the threshholds.
So probably good idea to title the agreement as for sales under XYZ rand (XYZ being the threshold)

[Dave A]

In the absence of a fee or charge, it escapes the definition of a credit agreement.

Ah yes, of course.
Thanks for clearing that up.