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Contract Confidence with PropWiz: What Every Buyer, Seller, and Landlord Should Know

Contract Confidence

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Signing a property contract is one of the biggest decisions most South Africans will ever make. Yet, many buyers and sellers feel overwhelmed by the legal language, fine print, and pressure to act fast. At PropWiz, we believe you deserve clarity, guidance, and full confidence before putting pen to paper. That’s why we’ve launched this 5-part educational series - “Contract Confidence with PropWiz” - to demystify property contracts and help you make smart, informed decisions. Whether you’re buying your first home, selling an investment property, or navigating a rental agreement, here’s what you need to know.

1. What Makes a Property Contract Valid? A property contract isn’t just a handshake and a signature. For it to be legally binding, four essential elements must be present: - Consensus: Both parties must clearly agree on the terms. - Capacity: Each party must have the legal ability to act (e.g., being of sound mind and over 18). - Legality: The purpose of the contract must be lawful. - Formalities: The contract must comply with legal requirements, such as being in writing and signed by all parties. Without these basics, your contract may not hold up in court. At PropWiz, we ensure every offer to purchase or lease agreement is carefully structured, clearly explained, and legally compliant - so you don’t get caught off guard.

2. Suspensive vs Resolutive Conditions – What’s the Difference? Not all contracts take effect immediately. Many include conditions that must be met for the contract to proceed or stay valid. - A suspensive condition puts the contract on hold until something happens - like a buyer getting bond approval. If the condition isn’t met, the deal is cancelled. - A resolutive condition means the contract is valid from the start, but it will fall away if a certain event occurs later. These clauses exist to protect both parties. For example, if you’re selling and the buyer doesn’t get financing in time, the suspensive clause allows you to move on without penalty. If you’re buying, you don’t want to be stuck in a deal you can’t afford. PropWiz takes the time to walk through every condition with you before any decisions are made.

3. Common Contract Mistakes (and How to Avoid Them) Many deals fall through or end up in dispute due to simple mistakes - some of which are easily avoidable: - Leaving blanks in the contract - Crossing out terms without signing next to the change - Relying on verbal agreements not written into the document - One person signing on behalf of another without legal authority Remember: if it’s not in writing, it doesn’t exist. That’s why PropWiz thoroughly reviews every line, double-checks signatures, and ensures that what you’ve agreed to is what’s on paper. Our role is to safeguard your interests and help you avoid costly errors.

4. Mandates Made Simple: Choosing the Right One When you’re selling your home, one of your first decisions will be choosing a mandate - an agreement between you and the estate agent.

Here are your options:

Open Mandate: You can list your property with multiple agencies at once. While it may seem like you’re getting more exposure, it can lead to confusion, duplicated listings, and limited agent commitment.

Sole Mandate: You give one agency exclusive rights to market the property for a set period. This often results in more focused marketing, a better buyer match, and a smoother process.

MLS (Multi Listing Service): A PPRA-compliant system where agencies share listings with other qualified professionals. It combines the focus of a sole mandate with the reach of multiple agents, all under clear rules. PropWiz actively markets all our sole and MLS mandates with professional photos, pre-qualified buyer access, and platform-wide exposure. We consult with you on the best strategy to ensure your property stands out.

5. What Happens If the Deal Falls Through? Sometimes, despite best efforts, a property deal doesn’t go according to plan. Perhaps the buyer doesn’t secure financing, the seller breaches the terms, or either party decides to walk away.

That’s where contract clarity is crucial. Here are a few key protections built into real estate contracts:

Cooling-off period: In some cases (especially with sales under R250,000), the buyer has a 5-day period to cancel without penalty.

Breach clauses: These outline what happens if one party doesn’t fulfil their part - like a late deposit or missed occupation date.

Deposit handling: The contract should state how the deposit is protected and what happens if the deal collapses. At PropWiz, we handle these situations with care, professionalism, and your best interest at heart. We liaise with attorneys, banks, and buyers or sellers to find solutions and protect your investment - whether the deal goes ahead or not.

Why It Matters: Confidence Through Compliance In a world of legal jargon and high-stakes deals, the role of a responsible, professional estate agency is more important than ever. As a PPRA-registered real estate agency, PropWiz adheres to the highest standards of ethics, transparency, and consumer protection.

That means you can trust:

Clear communication

Proper documentation

Expert contract advice

Legally compliant processes

When you work with PropWiz, you don’t just get a property agent - you get a real estate partner committed to protecting your financial future. A contract is more than a piece of paper - it’s your gateway to owning, selling, or renting property with peace of mind. The more you understand about how contracts work, the better prepared you are to navigate your property journey with confidence.

Let PropWiz guide you through it. Property Sales | Property Rentals | Commercial Property | Property Development | Real Estate Market | PPRA Registered.

At PropWiz, the genius isn't just in our name – it's in everything we do.

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