This is a follow on to my article of two weeks ago “How do I buy property cheaply?

The seller’s attorney had originally drafted the Sale Agreement and I was engaged by my client to modify it to ensure compliance with SARS’ requirements for zero rating of the sale of a going concern. The seller’s attorney, who clearly didn’t understand the VAT Act, kept putting obstacles in the path until my clients got fed up to the point where they were going to tell the seller that they were walking away from the purchase.

I suggested that rather than walk away, they should put in a stupid offer. They did and got a great deal. However, at that stage it was just a verbal agreement.

About a week later I was asked to check the VAT aspects of the final agreement that the attorney had apparently modified yet again.

I put my version next to his on the same screen and compared them, looking for the VAT related matters.

I was amazed to find that this –

• The PURCHASER acknowledges being aware that the SELLER has registered water rights for irrigation purposes at the relevant authority. The Seller will deliver all relevant documentation regarding the current water rights to the PURCHASER.

had been replaced by this –

• The PURCHASER acknowledges for (sic) being aware that the SELLER cannot deliver proof that they are registered for water rights for irrigation purposes at the relevant authority.

That was bad enough, but there was another clause quietly inserted from nowhere –

• The PURCHASER acknowledges that they are aware that there is a Land Claim lodged on the PROPERTY at the Commission of Restitution of Land Rights on 16 July 2017.

My clients had not spotted these changes. Why? Because they had read that contract so many times, they didn’t think it necessary to read it again.

Lesson to be learned. Before you put your signature to any important document, read it through carefully once more, no matter how many times you have read it already.

That was the final straw. My advice was “Walk away”, which they did.

Oh, and by the way, this –

• The PURCHASER shall be liable for the payment of the costs of registration of transfer of the IMMOVABLE PROPERTY

had been replaced by this –

• The PURCHASER shall be liable for the payment of the costs of this agreement and the costs for registration of transfer of the IMMOVABLE PROPERTY

Cheeky!