The term of validity of any promise of sale agreement is suspended indefinitely until further notice. This emanates from the new legal notice enacted today in the midst of the COVID-19 national and international crisis. Additionally, the legal notice provides for the suspension of other terms relating to property deals, wills and other contracts.
The following legal terms are now suspended:
- legal terms imposed on a notary public by law to register any deed, will, act or private writing;
- any period in which the notary public, in terms of law, has to pay taxes collected by him in the exercise of his profession;
- any term related to fiscal benefits, incentives or exemptions or any period within which a notary public is to submit any information or documentation to any authority or regulator pursuant to relevant notarial activity; or
- any expiration of any term in any promise of sale agreement duly registered in terms of law
This was a natural and expected development following the order of closure of courts effective as from the 16th March 2020 for an indefinite period, until further notice. The suspension of legal terms ensures that, persons or entities who are parties to contractual deals, are not unfairly prejudiced in view of the impossibility to curtail or enforce their legal rights through courts. In the context of property deals, this ensures that promise of sale agreements duly registered with the Commissioner of Inland Revenue are safeguarded, any delay on the payment of taxes does not bring about repercussions and the nullity of agreements or loss of rights due to missed deadlines is excluded.
The suspension of such terms will remain in place for 20 days following the re-opening of the courts.
