A special mortgage over a property containing the terms and conditions of the mortgage agreement.

1. Kustingsbrief installment sale agreement

As a result of the current volatile economic climate it is important to be aware of all the implications involved when purchasing property.

Immovable properties are generally sold by way of a deed of sale in terms whereof the full purchase price is paid on the date of
registration of transfer of the property on the purchaser’s name.However, the Alienation of Land Act 68 of 1981 makes provision for a “kustingsbrief.”

What is a kustingsbrief - A kustingsbrief is a special mortgage in favour of a seller of land as security for the unpaid balance of the purchase price, or in favour
of any other person or financial institution who advanced the balance of the purchase price to the buyer.

A kustingsbrief is registered simultaneously with transfer of the property to the buyer and is, in terms of the principle of prior in
tempore, potior in iure (“first in time first in law”), kustingsbrief meaning - the strongest kind of mortgage as real security.

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