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Instalment Of Sale Agreement (ISA)

In the Online Property Investment Course you will learn all the ins and outs of Instalment Of Sale Agreement (ISA) #LegacyOnlineCourse

This remains the secret of some of the most successful investors in the property market. However, it is not a secret. It is information available to each and every individual who undertakes to develop a large property portfolio and build a legacy.

In short, Instalment of Sale Agreement (ISA) is also known as Seller Financing, ALA (Alienation of Land Act) or Rent to Own. This is where the property purchaser buys a property from the seller through agreed instalments over a period of time, within which this is legally recorded in the Deeds Office registry for protection of both the buyer and the seller.

Instalment sale agreement is based on the Alienation of Land Act, 1981 (ALA) and is primarily used or intended for residential purposes. According to the Act, the purchase price is paid to the seller by way of more than 2 (two) instalments over a period of longer than 1 (one) year and the period that may not exceed 5 (five) years.

This might sound complicated, but in effect, it is easier than you think. Best of all it is legislated within the Act and therefore most of the different scenarios have been well worked out and are legally binding.

Most purchasers are finding it difficult to get mortgages and purchase properties because financial institutions require higher deposits and due to the restrictions of the NCA (National Credit Act). This is most prevalent if you are an investor, business owner, blacklisted due to credit history, etc. Most importantly, there is an emphasis from the financial institutions to have higher deposits for purchases, for example, 10-20% of the value, without considering that the purchaser is also required to pay transfer costs.

To learn more about ISA be sure to book for the Online Property Investment Course today.


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