Common use of POSSESSION AND RISK Clause in Contracts

POSSESSION AND RISK. 16.1 Possession of the Property shall be given by the Seller, and taken by the Purchaser, on the date on which the Property is registered in the name of the Purchaser, from which date the Purchaser shall be liable for the risk of loss and profit in the Property, which means that the Purchaser will be responsible for anything that might happen to the Property and be responsible for all costs relating to the Property, including all rates, taxes and other charges levied upon the Property (including levies due to the applicable home owners’ association) plus Value Added Tax (“VAT”) thereon, if applicable and shall receive all benefits from the Property. 16.2 The Purchaser is aware that the Property forms part of a property development, the planning and execution of which is subject to numerous factors outside of the Seller’s control. While every effort will be made by the Seller to ensure that the development is proceeded with, there is no guarantee to this effect. Should the Seller be incapable of obtaining transfer of the erf on which the Property is to be constructed, or should the development lose its commercial feasibility, or should the development not occur for any reason in the Seller’s discretion, then the Seller will be entitled to cancel this Agreement on notice to the Purchaser, who shall then be entitled to return of its deposit.