A consumer is over-indebted if he cannot afford to make all the debt repayments and if his expenses exceed his income. In the case of catch-up sales contracts and other agreements for which payment is deferred, it is important to consider the effects of the national credit law. In order to avoid confusion, the National Credit Act should be amended to include tempe purchase contracts on real estate in the section of the Act. If you need to apply for a loan, be sure to contact a registered and serious credit provider. If a temperature-based sales contract provides for a purchase price of more than R 500,000, the creditor (the seller in the sense of a temperature purchase agreement) should register as a credit provider within the meaning of the law. Under Section 40 of the Act, a seller participating in an installment sales contract must apply for registration as a lender if the lender`s total debt under all outstanding credit contracts exceeds R500,000 (this amount may be changed by the Minister of Commerce and Industry by notification in the government`s press release). Although a tempered purchase contract is defined in the act as a contract for personal property, a stormy purchase contract for real estate is a credit transaction within the meaning of the law. A deferral of the payment that the buyer must make to the seller within the meaning of an agreement; and – A tax, levy or interest that the buyer must pay to the seller because of the deferral of payment. Therefore, if an agreement provides only for the deferral of the payment of capital and there are no interest, commissions or other taxes, National Law 34 of 2005 does not apply to the sales contract. Beware, because the inflation of the purchase price, beyond the market value of the property sold, can be considered as a royalty or a royalty that the National Credit Act can make applicable. Therefore, if, in this case, the seller does not charge interest, fees or fees on the purchase price or if the seller does not inflate the purchase price above market value, the national credit law does not apply.
However, if the seller wishes to add interest, fees or charges to the purchase price or inflate the purchase price above market value, the National Credit Act of 2005. 3 applies. The seller must declare the sales contract to the relevant body within 90 days of the conclusion of the sales contract. The name of the title is confirmed. It thus prevents a new sale or a hypothesis. Of course, this will protect the buyer. The NCA does not apply to a significant agreement between the bank and a consumer who is a legal entity whose assets or annual turnover at the time of the agreement is equal to or above an R1m threshold.