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CNA has a standard pre-print that you can buy there. From what i remember was OK but don't know if it is updated with NCA etc. Also there is one on www.offertopurchase.co.za I think it is about R50 for that one or there abouts.
Haha GOOD POINT! It's nice to see how many view points there actually are when neutral. In my view there is only ONE OTP... property. Kinda realise could be selling pets
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Presumably you are dealing via a business broker - do they not already have the necessary documents?
They do but it is for a offer to purchase property, i think its the first time they are selling a business. I have asked them to get the correct document. but in the mean time i am trying to see if i can get one.
Another quick Q: Is it normal for the broker to request a deposit that will be held in the sellers lawyers account where commission will be paid out before the deal is concluded ?
J - I've emailed you a generic sale of business agreement template (one of the privileges of being an admin - I can hunt down your email address). But as Garth points out, this is the sort of thing where a lawyer could be a very worthwhile investment.
On deposits held by lawyers, as long as it is held in their trust account you should be fine. If you're not sure of their credentials, you can ask for a copy of their (fidelity?) certificate. I know they can't play around with trust moneys without running the risk of pretty severe consequences.
as this is my first time going into business its quite scary.
All the more reason to have a lawyer watching your back, especially seeing as you are buying a business. I'd hate to hear you'd been taken for a ride one day. If you look at the money in play, the cost of legal help is small potatoes.
Generally yes. you "could" use a generic but a little dodgy. I use the word generally cause (now i slate my line of work) most agents dont have seperate agreements. We use a sectional, freehold, development contract. The minor issues are usage areas, rates, taxes, levy, acceptance of rules etc.
The scary bit. I reckon 90% of written offers are incorrect or mistakes big enough to cause real issues (inadequate training). Many conveyancers let them ride simply as to get them really correct through the agents probably enough to lose hair over. It's fine and goes through ok - until one of the party's decide to breach, then those little mistakes become very expensive
Could be either and this aspect must be clarified upfront - depending on whether seller is registered VAT vendor or not. Then it could also be a standard supply @ 14% or a zero rated supply if sale is on "going concern" basis. It is a requirement of the VAT Act that if the sale is "going concern", then your agreement must specify clearly that the supply is INCLUSIVE of VAT at zero %.
I strongly agree with Dave's previous posting - rather spend extra money on obtaining decent legal AND accounting advice - just the VAT implications alone in an incorrectly worded OTP can cause you severe financial hardship.
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