Common use of Obligation to Build Clause in Contracts

Obligation to Build. 9.1 If the PROPERTY is a vacant erf, the PURCHASER undertakes that the erection of a house on the PROPERTY will commence within 2 (two) years of the date of registration of transfer of the PROPERTY in the name of the person who purchased the PROPERTY in the first instance from the DEVELOPER or such extended date recorded in Clause 1.16, and will be completed within 12 (twelve) months from such commencement. The house shall be regarded as being completed upon the issue of an occupational certificate by the Local Authority and the ASSOCIATION or its nominee whereafter the PURCHASER shall be entitled to take occupation of the improvements on the PROPERTY. 9.2 Should the PURCHASER fail or neglect to erect a house within the period stipulated in Clause 9.1, the DEVELOPER or its nominee shall have the right at any time after the expiry of the prescribed period, to repurchase the PROPERTY from the PURCHASER on the following terms and conditions: 9.2.1 The DEVELOPER shall exercise its right by written notice to the PURCHASER’S chosen domicilium in terms of Clause 21 hereof; 9.2.2 Should there be no improvements on the PROPERTY, the purchase price shall be an amount equal to the PURCHASE PRICE at which the PURCHASER acquired the PROPERTY; 9.2.3 Should the PROPERTY have been improved, the purchase price shall be an amount equal to the PURCHASE PRICE at which the PURCHASER acquired the PROPERTY plus the cost to the PURCHASER of the improvements or the value of the improvements as they stand, whichever is the lower, less the costs of transferring the PROPERTY to the DEVELOPER. The cost or the value of the improvements shall be determined by a quantity surveyor appointed by the DEVELOPER, whose decision shall be final and binding on the PARTIES and who, in arriving at such decision, shall have acted as an expert and not an arbitrator. 9.3 Should the DEVELOPER exercise its rights in terms of Clause 9.2: 9.3.1 The full purchase price will be paid to the PURCHASER on registration of transfer of the PROPERTY to the DEVELOPER; 9.3.2 The profit realised by the DEVELOPER on the resale of the PROPERTY after deduction of its expenses, shall be paid into the banking account of the ASSOCIATION for the benefit of the OWNERS; 9.3.3 Transfer of the PROPERTY shall be registered by the DEVELOPER’S Attorneys as soon as possible after the DEVELOPER has exercised its rights in terms of Clause 9.2; 9.3.4 All risk, benefit, and occupation of the PROPERTY will, in this case, be given to the DEVELOPER on transfer of the PROPERTY to it. All rates, taxes, levies, and other relevant expenses on the PROPERTY shall be borne and paid by the PURCHASER until the transfer of the PROPERTY; 9.3.5 The PURCHASER agrees to do all such things as may be necessary or incidental or conducive for the implementation of the terms, conditions, and import of this Clause 9.3. The PURCHASER hereby irrevocably and in rem suam appoints the DEVELOPER with power of substitution as its attorney and agent on its behalf, to sign all documents and do all things necessary to give effect to this Clause 9.3 and to appoint conveyancers on its behalf to transfer the PROPERTY to the DEVELOPER. 9.4 Should the PURCHASER sell the PROPERTY before the erection of a house thereon in terms of Clause 9.1, the DEVELOPER shall have a pre-emptive right to purchase the PROPERTY from the PURCHASER at the price offered by the third party, subject to the standard conditions of current MOUNT ROYAL Agreement of sale but without the DEVELOPER having to pay a deposit. 9.5 Should the DEVELOPER choose not to exercise its rights in terms hereof, the PURCHASER acknowledges that the ASSOCIATION nevertheless has the right to demand performance by the PURCHASER of its obligations in terms of Clause 9.1.

Obligation to Build. 9.1 If 17.3.1 It is specifically agreed that the PROPERTY is sold to the PURCHASER for the purpose of the PURCHASER erecting thereon a vacant erfdwelling house acceptable to the ASSOCIATION, within a period stipulated by the ASSOCIATION. 17.3.2 The PURCHASER undertakes that the erection of a the dwelling house on the PROPERTY will commence within 2 24 (twotwenty four) years of months after the date of registration of transfer of the PROPERTY in the name of the person who purchased the PROPERTY in the first instance from the DEVELOPER or such extended date recorded in Clause 1.16, TRANSFER DATE and will be completed within 12 (twelve) months from such commencement. The Until such time as a dwelling house shall be regarded has been erected on the PROPERTY as being completed upon the issue of an occupational certificate by the Local Authority and the ASSOCIATION or its nominee whereafter envisaged in this agreement, the PURCHASER shall not be entitled in any way to take occupation donate, sell, exchange or in any way alienate the PROPERTY without the consent of the improvements on SELLER first being obtained in writing, which shall not be unreasonably withheld. This obligation as provided for in clause 17.3.1 shall commence from the PROPERTYdate of registration of the first transfer from the developer to the First PURCHASER and the time limits as provided for herein shall no be interrupted in the event of the PROPERTY being sold to successors in title. 9.2 17.3.3 Should the PURCHASER fail or neglect to erect a house dwelling as set out in this clause 17.3.2 within the period stipulated in Clause 9.1stipulated, the DEVELOPER or its nominee SELLER shall have the right at any time after the expiry of the prescribed period, to repurchase re-purchase the PROPERTY from the PURCHASER on the following terms and conditions: 9.2.1 17.3.3.1 The DEVELOPER SELLER shall exercise its right by written notice to the PURCHASER’S PURCHASER chosen domicilium in terms of Clause 21 hereof;clause 20. 9.2.2 17.3.3.2 Should there be no improvements on the PROPERTY, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER acquired the PROPERTY;PROPERTY less the cost of transferring the PROPERTY to the SELLER. 9.2.3 17.3.3.3 Should the PROPERTY have been improved, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER acquired the PROPERTY plus the cost to the PURCHASER of or the improvements or of the value of the improvements as they stand, whichever is the lower, less the costs of transferring the PROPERTY to the DEVELOPERSELLER. The cost or the value of the improvements shall be determined by a quantity surveyor appointed by the DEVELOPERSELLER, whose decision shall be final and binding on the PARTIES parties and who, in arriving at such decision, shall have acted as an expert and not as an arbitrator. 9.3 Should the DEVELOPER exercise its rights in terms of Clause 9.2: 9.3.1 17.3.3.4 The full purchase price will be paid to the PURCHASER on registration of transfer of the PROPERTY to the DEVELOPER;SELLER. 9.3.2 The profit realised by the DEVELOPER on the resale of the PROPERTY after deduction of its expenses, shall be paid into the banking account of the ASSOCIATION for the benefit of the OWNERS; 9.3.3 17.3.3.5 Transfer of the PROPERTY shall be registered by the DEVELOPER’S Attorneys ATTORNEYS as soon as possible after the DEVELOPER SELLER has exercised its rights right in terms if clause 17.3.3.1. 17.3.3.6 The costs of Clause 9.2;transferring the PROPERTY to the SELLER including transfer duty or VAT, whatever the case may be, shall be borne by the PURCHASER. Should the SELLER deem it necessary, such costs shall be paid by the SELLER and deducted from the purchase price due to the PURCHASER. 9.3.4 17.3.3.7 All risk, benefit, benefit and occupation of the PROPERTY will, in this case, will be given to the DEVELOPER SELLER on transfer of the PROPERTY to it. All rates, taxes, levies, levies and other relevant expenses outgoings on the PROPERTY shall be borne and paid by the PURCHASER until the transfer of the PROPERTY;PROPERTY to the SELLER. 9.3.5 17.3.3.8 The PURCHASER agrees to do all such things as may be maybe necessary or incidental or conducive for to the implementation of the terms, conditions, conditions and import of this Clause 9.3. The PURCHASER hereby irrevocably and in rem suam appoints the DEVELOPER with power of substitution as its attorney and agent on its behalf, to sign all documents and do all things necessary to give effect to this Clause 9.3 and to appoint conveyancers on its behalf to transfer the PROPERTY to the DEVELOPER. 9.4 Should the PURCHASER sell the PROPERTY before the erection of a house thereon in terms of Clause 9.1, the DEVELOPER shall have a pre-emptive right to purchase the PROPERTY from the PURCHASER at the price offered by the third party, subject to the standard conditions of current MOUNT ROYAL Agreement of sale but without the DEVELOPER having to pay a deposit. 9.5 Should the DEVELOPER choose not to exercise its rights in terms hereof, the PURCHASER acknowledges that the ASSOCIATION nevertheless has the right to demand performance by the PURCHASER of its obligations in terms of Clause 9.1.clause

Obligation to Build. 9.1 If the PROPERTY is 15.1 The Purchaser undertakes to erect a vacant erf, the PURCHASER undertakes that the erection of a dwelling house on the PROPERTY will property. In this regard, the Purchaser shall be obliged to commence building work within 2 24 (twotwenty four) years of months after the date of registration of transfer of the PROPERTY in property into the name of the person who purchased Purchaser which building shall be constructed in accordance with the PROPERTY procedures and processes prescribed in the first instance from Association’s Constitution annexed hereto marked Annexure “D” and the DEVELOPER or such extended date recorded in Clause 1.16, Architectural Design Guidelines annexed hereto marked Annexure “B” and will be completed within 12 (twelve) months from of commencement of construction or such commencementextended period as the design review committee of the Association may decide in its sole discretion. The house weather and availability of building materials and labour permitting, the building process shall be regarded as being completed upon the issue of an occupational certificate by the Local Authority and the ASSOCIATION or its nominee whereafter the PURCHASER shall be entitled to take occupation of the improvements on the PROPERTY. 9.2 a continuous process. Should the PURCHASER Purchaser stop building, and fail or neglect to continue building after 21 (twenty one) days of receipt of written notice from the Association, the provisions of subparagraph 15.2 shall apply in the same way as if the Purchaser had failed to erect a dwelling house within the time period stipulated. 15.1.1 In the event that the Purchaser sells the property within the time period referred to hereinbefore the new Purchaser shall be subject to the time period as if they were the initial Purchasers of the property. 15.1.2 For purposes of this clause 15 the Purchaser shall require the Seller's consent to sell, alienate, donate, exchange the property only in the event that less than 75% of the properties in the estate having been transferred. 15.1.3 In the event of the purchaser wishing to sell the property within 5 years of registration of transfer the Purchaser shall be obliged to use the agent as defined in clause 1.1.13. 15.2 In the event of the Purchaser failing or neglecting to erect or complete a dwelling house on the property purchased within the time periods stipulated in Clause 9.1clause 15.1 above, the DEVELOPER or its nominee Seller shall have the right right, but shall not be obliged, at any time after the expiry of such time periods (by written notice to the prescribed periodPurchaser’s chosen address for notice purposes in terms of clause 10), to repurchase re-purchase the PROPERTY Property from the PURCHASER Purchaser on the following terms and conditions: 9.2.1 15.2.1 The DEVELOPER purchase price shall exercise its right by written notice to the PURCHASER’S chosen domicilium in terms of Clause 21 hereof;be calculated as follows: 9.2.2 15.2.1.1 Should there be no improvements on the PROPERTYproperty, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER Purchaser acquired the PROPERTY;property less the VAT portion of the purchase price paid by the Seller in respect of the sale to the Purchaser, and less the costs including transfer duty, of transferring the property back to the Seller (including transfer duty), and less any contributions owing to the Association, together with outstanding rates and taxes and/or any municipal services and/or monies due and owing to the local authority. 9.2.3 15.2.1.2 Should the PROPERTY Property have been improved, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER Purchaser acquired the PROPERTY property, less the VAT portion of the purchase price paid by the Seller in respect of the sale to the Purchaser, plus the reasonable cost to the PURCHASER Purchaser of the improvements or the reasonable value of the improvements as they stand, whichever is the lower, less the costs of transferring the PROPERTY property back to the DEVELOPERSeller (including transfer duty) and less any contributions owing to the association together with outstanding rates and taxes and/or any municipal services and/or monies due and owing to the local authority. The reasonable cost or the reasonable value of the improvements shall be determined by a quantity surveyor appointed by the DEVELOPERSeller, whose decision shall be final and binding on the PARTIES parties and who, in arriving at such decision, shall have acted as an expert and not as an arbitrator. 9.3 Should the DEVELOPER exercise its rights in terms of Clause 9.2: 9.3.1 15.2.2 The full purchase price will shall be paid by the Purchaser to the PURCHASER Seller on registration of transfer of the PROPERTY property from the Purchaser to the DEVELOPER;Seller. 9.3.2 The profit realised by the DEVELOPER on the resale of the PROPERTY after deduction of its expenses, shall be paid into the banking account of the ASSOCIATION for the benefit of the OWNERS; 9.3.3 15.2.3 Transfer of the PROPERTY property shall be registered by the DEVELOPER’S Attorneys conveyancers nominated by the Seller, as soon as possible after the DEVELOPER Seller has exercised its rights right in terms of Clause 9.2;clause 15.2 9.3.4 15.2.4 The costs of transferring the property back to the Seller including transfer duty, shall be borne by the Purchaser. Should the Seller deem it necessary, such costs and any other amount necessary to effect transfer may be paid by the Seller and deducted from the purchase price due to the Purchaser together with interest thereon at the prime rate charged by Absa Bank Limited plus 3% (three percent) from date of disbursement to date or repayment, both dates inclusive. 15.2.5 All risk, benefit, benefit and occupation of the PROPERTY will, in this case, property will be given to the DEVELOPER Seller on transfer of the PROPERTY property to it. All rates, taxes, levies, contribution and other relevant expenses outgoings on the PROPERTY property shall be borne and paid by the PURCHASER Purchaser until the transfer of the PROPERTY;property to the Seller. 9.3.5 15.3 The PURCHASER agrees to Purchaser shall do all such things as may be necessary or incidental or conducive for conclusive to the implementation of the terms, conditions, conditions and import of this Clause 9.3clause. The PURCHASER Purchaser hereby irrevocably and in rem suam appoints the DEVELOPER Seller with power of substitution as its attorney and agent on its behalf, behalf to sign all documents and do all things necessary to give effect to this Clause 9.3 clause 15 and to appoint conveyancers on its behalf to enable the re-transfer of the PROPERTY property to the DEVELOPER. 9.4 Should Seller to be effected and possession of the PURCHASER sell the PROPERTY before the erection of a house thereon in terms of Clause 9.1, the DEVELOPER shall have a pre-emptive right property to purchase the PROPERTY from the PURCHASER at the price offered by the third party, subject be delivered to the standard conditions Seller, including without limiting the generality of current MOUNT ROYAL Agreement of sale but without the DEVELOPER having to pay a deposit. 9.5 Should the DEVELOPER choose not to exercise its rights in terms hereofaforegoing, the PURCHASER acknowledges that the ASSOCIATION nevertheless has the right to demand performance by settle any encumbrance or mortgage bond over the PURCHASER property and any other creditors of its obligations the Purchaser who have attached or are threatening to attach the property, or who waive any lien or alleged lien in terms respect of Clause 9.1the property. 15.4 It is specifically recorded that the Purchaser is aware that the constitution provides that the Association may levy a monthly penalty equal to a maximum of three times the monthly contributions and charges levied from time to time from the commencement of the fourth year until date of completion of the dwelling.

Obligation to Build. 9.1 If the PROPERTY is 15.1 The Purchaser undertakes to erect a vacant erf, the PURCHASER undertakes that the erection of a dwelling house on the PROPERTY will property. In this regard, the Purchaser shall be obliged to commence building work within 2 24 (twotwenty four) years of months after the date of registration of transfer of the PROPERTY in property into the name of the person who purchased Purchaser which building shall be constructed in accordance with the PROPERTY procedures and processes prescribed in the first instance from Association’s Constitution annexed hereto marked Annexure “D” and the DEVELOPER or such extended date recorded in Clause 1.16, Architectural Design Guidelines annexed hereto marked Annexure “B” and will be completed within 12 (twelve) months from of commencement of construction or such commencementextended period as the design review committee of the Association may decide in its sole discretion. The house weather and availability of building materials and labour permitting, the building process shall be regarded as being completed upon the issue of an occupational certificate by the Local Authority and the ASSOCIATION or its nominee whereafter the PURCHASER shall be entitled to take occupation of the improvements on the PROPERTY. 9.2 a continuous process. Should the PURCHASER Purchaser stop building, and fail or neglect to continue building after 21 (twenty one) days of receipt of written notice from the Association, the provisions of subparagraph 15.2 shall apply in the same way as if the Purchaser had failed to erect a dwelling house within the time period stipulated. 15.1.1 In the event that the Purchaser sells the property within the time period referred to hereinbefore the new Purchaser shall be subject to the time period as if they were the initial Purchasers of the property. 15.1.2 For purposes of this clause 15 the Purchaser shall require the Seller's consent to sell, alienate, donate, exchange the property only in the event that less than 70% of the properties in the estate having been sold. 15.2 In the event of the Purchaser failing or neglecting to erect or complete a dwelling house on the property purchased within the time periods stipulated in Clause 9.1clause 15.1 above, the DEVELOPER or its nominee Seller shall have the right right, but shall not be obliged, at any time after the expiry of such time periods (by written notice to the prescribed periodPurchaser’s chosen address for notice purposes in terms of clause 10), to repurchase re-purchase the PROPERTY Property from the PURCHASER Purchaser on the following terms and conditions: 9.2.1 15.2.1 The DEVELOPER purchase price shall exercise its right by written notice to the PURCHASER’S chosen domicilium in terms of Clause 21 hereof;be calculated as follows: 9.2.2 15.2.1.1 Should there be no improvements on the PROPERTYproperty, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER Purchaser acquired the PROPERTY;property less the VAT portion of the purchase price paid by the Seller in respect of the sale to the Purchaser, and less the costs including transfer duty, of transferring the property back to the Seller (including transfer duty), and less any contributions owing to the Association, together with outstanding rates and taxes and/or any municipal services and/or monies due and owing to the local authority. 9.2.3 15.2.1.2 Should the PROPERTY Property have been improved, the purchase price shall be an amount equal to the PURCHASE PRICE purchase price at which the PURCHASER Purchaser acquired the PROPERTY property, less the VAT portion of the purchase price paid by the Seller in respect of the sale to the Purchaser, plus the reasonable cost to the PURCHASER Purchaser of the improvements or the reasonable value of the improvements as they stand, whichever is the lower, less the costs of transferring the PROPERTY property back to the DEVELOPERSeller (including transfer duty) and less any contributions owing to the association together with outstanding rates and taxes and/or any municipal services and/or monies due and owing to the local authority. The reasonable cost or the reasonable value of the improvements shall be determined by a quantity surveyor appointed by the DEVELOPERSeller, whose decision shall be final and binding on the PARTIES parties and who, in arriving at such decision, shall have acted as an expert and not as an arbitrator. 9.3 Should the DEVELOPER exercise its rights in terms of Clause 9.2: 9.3.1 15.2.2 The full purchase price will shall be paid by the Purchaser to the PURCHASER Seller on registration of transfer of the PROPERTY property from the Purchaser to the DEVELOPER;Seller. 9.3.2 The profit realised by the DEVELOPER on the resale of the PROPERTY after deduction of its expenses, shall be paid into the banking account of the ASSOCIATION for the benefit of the OWNERS; 9.3.3 15.2.3 Transfer of the PROPERTY property shall be registered by the DEVELOPER’S Attorneys conveyancers nominated by the Seller, as soon as possible after the DEVELOPER Seller has exercised its rights right in terms of Clause 9.2;clause 15.2 9.3.4 15.2.4 The costs of transferring the property back to the Seller including transfer duty, shall be borne by the Purchaser. Should the Seller deem it necessary, such costs and any other amount necessary to effect transfer may be paid by the Seller and deducted from the purchase price due to the Purchaser together with interest thereon at the prime rate charged by Absa Bank Limited plus 3% (three percent) from date of disbursement to date or repayment, both dates inclusive. 15.2.5 All risk, benefit, benefit and occupation of the PROPERTY will, in this case, property will be given to the DEVELOPER Seller on transfer of the PROPERTY property to it. All rates, taxes, levies, contribution and other relevant expenses outgoings on the PROPERTY property shall be borne and paid by the PURCHASER Purchaser until the transfer of the PROPERTY;property to the Seller. 9.3.5 15.3 The PURCHASER agrees to Purchaser shall do all such things as may be necessary or incidental or conducive for conclusive to the implementation of the terms, conditions, conditions and import of this Clause 9.3clause. The PURCHASER Purchaser hereby irrevocably and in rem suam appoints the DEVELOPER Seller with power of substitution as its attorney and agent on its behalf, behalf to sign all documents and do all things necessary to give effect to this Clause 9.3 clause 15 and to appoint conveyancers on its behalf to enable the re-transfer of the PROPERTY property to the DEVELOPER. 9.4 Should Seller to be effected and possession of the PURCHASER sell the PROPERTY before the erection of a house thereon in terms of Clause 9.1, the DEVELOPER shall have a pre-emptive right property to purchase the PROPERTY from the PURCHASER at the price offered by the third party, subject be delivered to the standard conditions Seller, including without limiting the generality of current MOUNT ROYAL Agreement of sale but without the DEVELOPER having to pay a deposit. 9.5 Should the DEVELOPER choose not to exercise its rights in terms hereofaforegoing, the PURCHASER acknowledges that the ASSOCIATION nevertheless has the right to demand performance by settle any encumbrance or mortgage bond over the PURCHASER property and any other creditors of its obligations the Purchaser who have attached or are threatening to attach the property, or who waive any lien or alleged lien in terms respect of Clause 9.1the property. 15.4 It is specifically recorded that the Purchaser is aware that the constitution provides that the Association may levy a monthly penalty equal to a maximum of three times the monthly contributions and charges levied from time to time from the commencement of the fourth year until date of completion of the dwelling.