Sale Agreement: Life Right - Pam Golding Properties

SOMERSET GARDENSLIFE RIGHTS AGREEMENTEntered into by and between:SOMERSET GARDENS DEVELOPMENTS (PTY) LIMITEDNo.1993/006113/07Of59 Southfield Road, Plumstead 7800The “Grantor”AndSOMERSET GARDENS MANAGEMENT (PTY) LIMITEDNo. 1992/003640/07Of59 Southfield Road, Plumstead 7800The “Management Company”And………………………………………………………Of………………………………………………………………………………………………………………………………………………………………………The “Occupant”Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 2 of 291. INTERPRETATION1.1 For the purposes of this Agreement, any reference to one gender shall include theother genders and any reference to the singular shall include the plural and viceversa and, unless the context otherwise requires, the following words shall havethe meanings assigned to them:1.2 THE SCHEME being the Somerset Gardens Life Rights Scheme1.3 THE SECTIONAL TITLE SCHEME being the Somerset Gardens Sectional TitleScheme.1.4 THE RESIDENTIAL UNIT being:1.4.1 Unit Number: …………as more fully described on the Plans of the retirement villagedevelopment scheme known as SOMERSET GARDENS situate atSomerset West of which Residential Unit the1.4.2 Floor Area is ………… square metres in extent,1.5 THE OWNER being the Grantor who is the registered owner of the land andbuildings of which the Residential Unit described in Clause 1.2 above is a part oralternatively who is the registered owner of the real right to extend the SectionalTitle Scheme or alternatively who is the registered owner of the Section.1.6 LIFE RIGHT being the right of the Occupant to use or occupy the Residential Unitfor the duration of his lifetime or the Nominated Occupant’s lifetime.1.7 OCCUPATION CONSIDERATION being the lease premium payable to theGrantor and in the amount ofR……………………………1.8 THE DATE OF OCCUPATION being……… of …….…………………… 200…..1.9 THE NOMINATED OCCUPANT being……….…………………………………1.10 THE SECTION being the section comprising and forming part of the ResidentialUnit as shown on the Draft Sectional Plans.1.11 THE UNIT being a Section and the undivided share in the Common Propertydetermined in accordance with the participation quota in respect thereof, in theSectional Title Scheme.1.12 THE SECTION 11(3)(B) SCHEDULE being the Schedule certified by aConveyancer setting out the servitudes and conditions of title burdening orbenefiting the land upon which the Sectional Title Scheme has been establishedand other registerable conditions imposed by the Local Authority or theAdministrator when approving the Sectional Title Scheme or by the Grantor asDeveloper and a copy of which is available for inspection at the offices of theGrantor and Agent.1.13 THE SECTIONAL PLAN being the Sectional Plan prepared by the Land Surveyorin respect of the buildings comprising the Sectional Title Scheme, a copy of whichis available for inspection at the offices of the Grantor and Agent.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 3 of 291.14 THE DRAFT SECTIONAL PLANS being The draft Sectional Plans in respect ofthe phase into which the Unit falls, a copy of which may be inspected at the at theoffices of the Grantor and Agent.1.15 THE EXCLUSIVE USE AREAS being any areas allocated for the exclusive use ofthe owners of Units delineated on the Sectional Plan.1.16 THE PARTICIPATION QUOTA being the Participation Quota allocated to theSection in the Sectional Plans.1.17 THE PHASED DEVELOPMENT being the various phases of development as arenecessary in terms of the right reserved to the Grantor as Developer in terms ofSection 25 of the Sectional Titles Act, details of which may be inspected at theoffices of the Grantor and Agent.1.18 THE SECTIONAL TITLES ACT being the Sectional Titles Act 95 of 1986.1.19 THE RETIRED PERSONS ACT being the Housing Development Schemes forRetired Persons Act No. 65 of 1988.1.20 THE DEFINED INTEREST RATE being the prime lending rate of Standard BankLimited.1.21 THE ARCHITECT being Jac Snyman of J S Associates, Architects and UrbanPlanners, of 26 Cromer Road Muizenberg 7950, telephone 021 7881421.1.22 THE BODY CORPORATE being the Body Corporate of the Sectional TitleScheme.1.23 THE OCCUPATIONAL RENTAL being the amount arrived at by multiplying theDefined Interest Rate by the balance of the Purchase Price outstanding from timeto time, calculated and payable monthly in advance on the first day of each monthfrom the date of occupation until the date payment in full of the Purchase Price ismade.1.24 THE TERMINATION DATE being the date of termination of this Agreement.1.25 THE MAINTENANCE LEVY being the amount payable monthly by the Occupantor the Nominated Occupant to the Management Company in respect of theResidential Unit and as more fully detailed in Clause 10.1.26 THE MANAGEMENT ASSOCIATION being an association established in terms ofthe Retired Persons Act and upon the opening of the Sectional Title Register shallbe constituted by the Body Corporate.1.27 THE RULES being the Statutory Management and Conduct Rules in terms ofSchedules 8 and 9 to the Regulations of the Sectional Titles Act together with anyamendments thereto, a copy of which is annexed hereto (Annexure “C1” and “C2”)and which Rules shall apply mutatis mutandis to the Management Association.1.28 THE ESTIMATED ANNUAL EXPENDITURE FOR THE NEXT THREE YEARSbeingYear 1R …………………Year 2R …………………Year 3R …………………which amounts are based on a completed development. The actual amounts willbe relative to the number of units built and occupied during each year.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 4 of 291.29 THE ESTIMATED ANNUAL MAINTENANCE LEVY FOR THE NEXT TWOYEARS beingR………………………Exclusive of any Value Added Tax. (See Clause 39.)1.30 THE MONTHLY MAINTENANCE LEVY payable by the Occupant or NominatedOccupantR………………Exclusive of any Value Added Tax. (See Clause 39.)1.31 THE MONTHLY FRAIL CARE LEVY payable by the Occupant or NominatedOccupant in the event that either receives care and is accommodated in the FrailCare facility within the DevelopmentR………………Exclusive of any Value Added Tax. (See Clause 39.)1.32 THE DEVELOPER being Somerset Gardens Developments (Pty) Limitedregistration number 1993/006113/07 and a Party to this Agreement.1.33 THE MANAGEMENT COMPANY being Somerset Gardens Management (Pty)Limited registration number 1992/003640/07 and a Party to this Agreement.1.34 THE AGENT being……….…………………………………Of……….…………………………………1.35 THE LAND SURVEYOR being Jennings, Goullee, Thomson of 9 Maritz Street,Bellville, 7530 Telephone 021 948 0654, Fax 021 9462330.1.36 THE CONVEYANCERS being Morkel & De Villiers of The Forum, 13 DramaStreet, P.O.Box 43, Somerset West, 7129, Telephone 021 8524417, Fax 0218517163.2. INTRODUCTION2.1 The Somerset Gardens Scheme is a Phased Development for retired people, andis subject to the provisions of both the Sectional Titles Act and the HousingDevelopment Schemes for Retired Persons Act No. 65 of 1988 and Annexure Ahereto provides all disclosures required in terms of The Retired Persons Actand/or the Regulations thereto.2.2 The completed Scheme including the Sectional Title Scheme will comprise ofapproximately 203 Units plus additional Sections representing certain facilitiessuch as kitchens, offices, stores, workshops, frail care units, assisted care unitsetc.2.3 The Grantor as Developer has reserved the right to extend the Sectional Plan andthe Sectional Title Register in terms of the provisions of Section 25 of theSectional Titles Act.2.4 The Owner as Grantor offers occupation of Residential Units comprising SomersetGardens Retirement Village by disposing of Life Rights in respect of ResidentialSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 5 of 29Units within the Scheme to senior citizens, subject to the terms hereinaftercontained.2.5 The Occupant wishes to obtain the Life Rights to the Residential Unit, which theparties acknowledge and agree are not registerable, subject to the terms andconditions hereinafter contained.IT IS THEREFORE AGREED AS FOLLOWS:3. INCORPORATION3.1 Clauses 1 and 2 above are hereby incorporated in and form an integral part of thisAgreement as do the Annexures hereto.4. GRANT OF LIFE RIGHT4.1 The Grantor hereby grants to the Occupant a Life Right to the Residential Unit.5. OCCUPATION CONSIDERATION5.1 The cost of the said Life Right is the sum reflected as the OccupationConsideration in Clause 1.7 above.6. PAYMENT6.1 The Occupant shall pay to the Conveyancer, in trust:6.1.1 A holding deposit of R5000.00 on signature hereof.6.1.2 A deposit of 10% of the Occupation Consideration less R5000.00 beingan amount of:R …………..………by not later than:andthe …….… day of …………...…………… 200…… ;6.1.3 The balance ofR ……………………on occupation of the Unit being given by the Grantor or by not later than:the …….… day of …………...…………… 200……, whichever is the later.6.2 The Occupant shall provide the Grantor with an acceptable letter of undertakingfrom an attorney, or a bank guarantee, for the balance to be paid in terms ofClause 6.1.3 which letter or guarantee shall be provided at least four monthsbefore the Occupation Date specified in Clause 1.8.6.3 Failure to provide the letter of undertaking or guarantee specified in Clause 6.2 willresult in a delay in the scheduled date of commencement of construction of theUnit and the Occupation Date specified in Clause 1.8 will be equally delayed.6.4 The Conveyancer shall invest such sums, and the interest accruing thereto, priorto the Occupation Date, shall be for the benefit of the Occupant and thereafter forthe benefit of the Grantor.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 6 of 296.5 Upon fulfilment of any conditions to which this Agreement is subject, or the date ofoccupation, whichever is the later, the Conveyancer shall make payment of allamounts due, in terms of this Agreement, to the parties entitled thereto7. INTEREST7.1 Any amount outstanding and not paid on the due date for payment will attractInterest which shall be calculated as set out in Clause 1.23.8. POSSESSION AND OCCUPATION8.1 Subject to the Occupant having paid the amounts due by him, he shall be entitledto the exclusive and vacant occupation of the Residential Unit, free of rent, duringhis lifetime, subject always to the terms contained in this Agreement. Suchoccupation shall be given on the date of occupation provided all amounts payablein terms of Clause 6.1 above have been paid in full.8.2 From the date of occupation all risk in and to the Residential Unit shall pass to theOccupant who shall be liable for and pay the contributions referred to in Clause1.25.8.38.3.1 The Occupant shall not let, cede, assign, sell or part with possession ofthe Residential Unit (other than to the Nominated Occupant) without theprior written consent of the Grantor.8.3.2 The Occupant acknowledges that such prior written consent shall not beprovided until the Grantor is in possession of a written undertaking fromthe party to whom possession is given indicating that such party will bebound by and abide by the Rules and Conduct Rules of SomersetGardens.8.4 The Occupant shall not make any alterations or additions to the Unit without theprior written consent of the management Association Corporate and the Grantor.8.5 The Occupant and Nominated Occupant shall comply with the Rules and ConductRule of Somerset Gardens, notwithstanding the fact that he may not be a memberof the Management Association.8.68.6.1 Notwithstanding anything to the contrary herein contained, no personother than an Occupant and Nominated Occupant may occupy the Unitwithout the prior written consent of the Grantor. Occupation, for thepurposes of this Sub Clause, shall not include short overnight visits byrelatives or friends of the Occupant or Nominated Occupant.8.6.2 The Occupant acknowledges that such prior written consent shall not beprovided until the Grantor is in possession of a written undertaking fromthe party to whom possession is given indicating that such party will bebound by and abide by the Rules and Conduct Rules of SomersetGardens.8.7 The anticipated Occupation Date reflected in Clause 1.8 of the Schedule is onlyan estimate of the actual Occupation Date and no liability whatsoever will attach tothe Grantor if the Occupation Date occurs before or after the date reflected inClause 1.8 of the Schedule.8.88.8.1 The peaceful use and enjoyment of and access to the Unit and theCommon Property may be temporarily interrupted and noise and dustcaused, from time to time during such building operations.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 7 of 298.8.2 The Occupant shall have no claim whatsoever against the Grantor, norshall the Occupant be entitled to any reduction in the total OccupationConsideration or interest thereon by reason of any such inconvenienceand/or interruption referred to in Clause 8.8.1. The Grantor shallhowever use all reasonable endeavours to procure that suchinconvenience or interruption due to other portions of the Unit and/orBuilding being incomplete at the Occupation Date is kept to a minimum.8.9 The Occupation Date shall under no circumstances be deferred or the Unitconsidered unsuitable for beneficial occupation by reason of any improvements,additions or alterations to be effected to the Unit, in terms of any agreementhereafter signed by the Occupant and the Grantor, not having been completed.9. MAINTENANCE OF THE SCHEME AND THE DUTIES OF THE MANAGEMENT COMPANY9.1 The Management Company shall in terms of the Management Agreement and onbehalf of the Body Corporate provide the services to the Residential Units and theOccupants and Nominated Occupants at set out in Clause 10.1 in terms of theManagement Agreement entered into between the Body Corporate and theManagement Company.9.2 The Management Company may subcontract any part or all of its duties.9.3 The interior of the Residential Unit, including carpets, cupboards, tiling andpainting shall, for the term of this Agreement, be maintained and/or redecoratedand/or repaired and/or replaced by the Occupant or at the Occupant’s cost andupon termination of this Agreement the interior shall be left in the same state as itwas on commencement, fair wear and tear excluded.9.4 The Management Company or the Grantor shall be entitled to recover the cost ofrepairing any damage caused directly or indirectly by the Occupant or his guests,from the Occupant or to offset this cost from any amount due back to theOccupant in terms of this Agreement.10. MAINTENANCE LEVY10.1 The Management Company hereby undertakes to pay on behalf of the Occupantand/or the Nominated Occupant the:10.1.1 Body Corporate Levy in respect of the Unit to the Body Corporate;10.1.2 Municipal rates applicable to the Unit to the local authority;10.2 By their signature hereto the Occupant and the Nominated Occupant agree to:10.2.1 make payment to the Management Company of the MonthlyMaintenance Levy as set out in Clause 1.30 in return for theManagement Company assuming the obligations of the Occupant interms of Clause 10.1 above.10.2.2 grant to the Management Company a proxy to attend all generalmeetings of the Management Association and to vote on the Occupant’sor Nominated Occupant’s behalf at such meetings in respect of allmatters that will affect or relate to the Body Corporate Levy.10.3 The Body Corporate Levy shall include:10.3.1 Management of the Scheme including the employment and supervisionof all management, service, support, maintenance, cleaning, gardening,security and nursing staff, but excluding the employment of privatecleaning and gardening staff for servicing the interior of individualResidential Units and private gardens or the employment of privatenursing staff for the nursing care of individual Occupants or NominatedOccupants;Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 8 of 2910.3.2 Maintenance of the exterior of all communal buildings and ResidentialUnits and the interior of communal buildings, but excluding themaintenance of the interior of Residential Units;10.3.3 Insurance of all communal buildings, the Residential Units and TheScheme in general, but excluding the insurance of the contents ofindividual Residential Units;10.3.4 Supply of water to the communal property and communal gardens, butexcluding the supply of water to individual Residential Units for privateconsumption;10.3.5 Supply of electricity to the communal property and communal buildings,but excluding the supply of electricity to individual Residential Units forprivate consumption;10.3.6 The levy payable in respect of each Unit to the Heritage Park MasterOwners Association, which association comprises all the propertyowners within Heritage Park;10.3.7 Rates and taxes on all communal buildings;10.3.8 Maintenance of the communal gardens, but excluding the maintenanceof private gardens where these have been permitted;10.4 The said Maintenance Levy shall be due on the first day of each month and shallbe paid to the Management Company each month or as the ManagementCompany directs.10.5 The Occupant shall be liable for and pay the Maintenance Levy in respect of theResidential Unit with effect from the date of occupation.10.6 The amount of the Maintenance Levy payable by the Occupant is set out inClause 1.30 above and is determined based on the average age of the Occupantand any Nominated Occupant or Joint Occupant at the time of entering into thisAgreement. Accordingly, the Grantor as developer has amended the provisions ofRegulation 14(a) to the Act regarding the basis of calculating the levy.10.7 In the event that the Body Corporate budgets to perform additional services or tomeet additional costs over and above those contemplated herein and these costsresult in an increase in the Body Corporate Levy then the Management Companywill be entitled to recover from each Occupant or Nominated Occupant theincreased portion of the Body Corporate Levy relating to the additional services.10.8 The Maintenance Levy as set out in Clause 1.30 shall remain fixed:10.8.1 For as long as the Occupant or the Nominated Occupant occupies theResidential Unit or the Frail Care Facility or occupies an Assisted CareUnit pursuant to Clause 12.7.10.8.2 For as long as the Body Corporate and/or its Trustees (who are electedby the members of the Body Corporate including the Occupant) do notterminate the Management Agreement by which the ManagementCompany has been appointed10.9 In the event that the Body Corporate and/or its Trustees terminate theManagement Agreement then the Maintenance Levy payable to the ManagementCompany in terms hereof will no longer be payable and the provision of servicesby the Management Company to the Occupant and the Nominated Occupant andspecifically the undertakings given in Clause 10.1 shall cease.10.10 The Occupant acknowledges that he has acquainted himself with the Rules andthe method of calculation of levies payable by him in the event that theManagement Agreement is terminated and that the method of determining thelevy will be as specified in the Sectional Titles Act and the Retired Persons ActSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 9 of 2911. FRAIL CARE LEVYand will be calculated using the Participation Quota to apportion the total costsincurred by the Body Corporate in operating the Sectional Title Scheme betweenMembers of the Body Corporate, the Occupant or Nominated Occupant beingobliged to pay to the Body Corporate the levy applicable to the Section.11.1 The Grantor shall provide and the Management Company shall manage andadminister a facility for the care of Occupants and Nominated Occupants whobecome frail or who require nursing care while recovering from an illness oroperation (the “Frail Care Facility”).11.2 The services offered by the Management Company in the Frail Care Facility areinter alia:11.2.1 Accommodation in a private or shared room;11.2.2 Daily meals and refreshments;11.2.3 Room cleaning service;11.2.4 Laundry service for linen and personal clothing;11.2.5 Primary nursing care;11.3 Not included in the Frail Care Levy are:11.3.1 Professional fees including those of doctors and specialists;11.3.2 Hospital fees;11.3.3 Medicines, dressings and other medical consumables;11.3.4 Specialised and/or intensive nursing care;11.4 For the purpose of clarity it is recorded that the Frail Care Facility is not a hospitalor specialised geriatric unit but capable only of providing primary nursing care.Any Occupant or Nominated Occupant requiring specialised care, treatment,supervision or nursing will not be able to receive this from the Frail Care Facility.11.5 No guarantee is given that the Frail Care Facility is capable of meeting theOccupant’s frail care needs either now or in the future.11.6 Neither the Occupant nor the Nominated Occupant is guaranteed thataccommodation will be available in the Frail Care Facility as the size of the facilityis fixed and accommodation will be given on a “first come first served” basis.11.7 In order to defray the costs of operating the Frail Care Facility the ManagementCompany may, during periods of low occupancy, provide care to those who arenot Occupants or residents of the Scheme and the Occupant and NominatedOccupant, by their signature hereto agree to the Management Company so doing.11.8 The Occupant or Nominated Occupant may only be admitted to the Frail CareFacility with the approval of a medical practitioner or the nurse in charge of theFrail Care Facility.11.9 Should either the Occupant or Nominated Occupant need to be cared for in theFrail Care Facility then they shall individually be charged a Frail Care Levy by theManagement Company, the amount of which is set out in Clause 1.31 above andis determined based on the average age of the Occupant and any NominatedOccupant or Joint Occupant at the time of entering into this Agreement.11.10 The Frail Care Levy shall be billed monthly in arrears and is due and payable onthe last day of each month that the Occupant or Nominated Occupant receivescare in the Frail Care Facility. The amount due will be calculated pro rata for anyportion of the month that the Occupant or Nominated Occupant receives care inthe Frail Care Facility.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 10 of 2911.11 The Frail Care Levy as set out in Clause 1.31 shall remain fixed:12. ASSISTED CARE UNITS11.11.1 For as long as the Occupant or the Nominated Occupant occupies theResidential Unit or occupies the Frail Care Facility or occupies anAssisted Care Unit pursuant to Clause 12.7.12.1 The Grantor shall provide and the Management Company shall manage andadminister a facility for accommodating Occupants and Nominated Occupantswho wish to give up their occupation rights in their Residential Units and who wishto occupy smaller accommodation units (an “Assisted Care Unit”).12.2 The services offered to occupants of an Assisted Care Unit are inter alia:12.2.1 Accommodation in a private bed sitter room with en suite facilities;12.2.2 Daily meals and refreshments;12.2.3 Room cleaning service;12.2.4 Laundry service for linen and personal clothing;12.2.5 Access to primary nursing care and the ability to call for assistance whennecessary;12.3 Services neither offered nor included in the Maintenance Levy are:12.3.1 Professional fees including those of doctors and specialists;12.3.2 Hospital fees;12.3.3 Medicines, dressings and other medical consumables;12.3.4 Specialised and/or intensive nursing care;12.4 For the purpose of clarity it is recorded that the Assisted Care Units are designedto accommodate the aged who no longer require the space offered by aResidential Unit or can no longer manage a Residential Unit for themselves butwho are not yet frail or otherwise incapacitated. Accordingly the level ofsupervision and care is not as high as that in the Frail Care Facility.12.5 Neither the Occupant nor the Nominated Occupant is guaranteed thataccommodation will be available in the Assisted Care Units as the number of unitsis fixed and accommodation will be given on a greatest need basis as determinedby the nurse in charge of the Frail Care Facility.12.6 In order to defray the costs of operating the Assisted Care Units the ManagementCompany may, during periods of low occupancy, provide accommodation to thosewho are not Occupants or residents of the Sectional Title Scheme and theOccupant and Nominated Occupant, by their signatures hereto agree to theManagement Company so doing.12.7 Prior to occupying an Assisted Care Unit, the Occupant or Nominated Occupantwill be required to permanently relinquish their right to occupy the Unit stipulatedin Clause 1.4.1, to terminate this Agreement and to enter into a separateagreement in terms of which they will rent an Assisted Care Unit. The rentalpayable by the Occupant or Nominated Occupant for a single Assisted Care Unitwill be equal to the Maintenance Levy stipulated in terms of Clause 1.30 plus theinterest earned on the amount to be repaid to the Occupant or NominatedOccupant in terms of Clause 24.5 and their right to repayment of the OccupationConsideration as set out in Clause 24.5 will only apply upon termination of therental agreement for the Assisted Care Unit. Upon termination of this Agreementin terms hereof the amount due to the Occupant in terms of Clause 24.5 shall beheld in an estate agent’s or attorney’s trust account with interest accruing to theGrantor until termination of the rental agreement to the Assisted Care Unit whereSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 11 of 29after such amount shall be released to the Occupant or Nominated Occupant ortheir estate as the case may be less any further reductions in terms of Clause24.5.13. MANAGEMENT ASSOCIATION AND BODY CORPORATE13.1 Upon the opening of the Sectional Title Register, the Grantor, as holder of the titleto the Section, shall and hereby cedes and assigns to the Occupant all of its rightsand obligations as a member of the Body Corporate in terms of the Rulesincluding the right to attend all general meetings and to vote thereat. The Grantorhereby undertakes to sign all such documents necessary to give effect to theterms of this Clause including signing all documents appointing the Occupant asits proxy. The Occupant, by their signature hereto accepts all such rights andobligations.13.2 The Body Corporate shall have its own Rules, hold General Meetings of itsMembers and elect a committee of Trustees.13.3 The Body Corporate shall have its own income and expenditure budget, whichshall be used to determine the Body Corporate Levy according to the ParticipationQuota of each Unit.13.4 The Body Corporate has, in terms of a management agreement, assigned itsrights and duties as contained in the Rules to the Management Company. TheManagement Company has accepted this assignment and undertaken for so longas it remains appointed in terms of the management agreement to fix theMaintenance Levy and Frail Care Levy for the Occupant as it has done in terms ofthis Agreement. The Occupant and Nominated Occupant, by their signaturehereto, irrevocably agree to the appointment of the Management Company andthe assignment to the Management Company of the Body Corporate’s rights andduties. Copies of the management agreement and the Rules of the BodyCorporate are available for inspection at the address of the Grantor.13.5 The Occupant acknowledges the rights granted to the Management Company asset out in Clause 10.2.2 above.13.6 The Occupant acknowledges that after the establishment of the Body Corporate interms of Section 28 of the Sectional Titles Act, a general meeting of the BodyCorporate will be convened in terms of the said Act, at which the Rules ascontained in Annexures 8 and 9 of the Regulation to the said Act will beamended/substituted to incorporate the relevant terms of this Sale Agreement, aswell as the Rules imposed by the Seller. To this end the Occupant hereby givesand grants to the Seller an irrevocable Power of Attorney in rem suam (operativefrom time to time the Occupant becomes a member of the ManagementAssociation) to attend such general meeting on behalf of and to the exclusion ofthe Occupant to vote at such meeting of the Body Corporate for the adoption ofsuch amended/substituted Rules.14. ABSENCE FROM RESIDENTIAL UNIT14.1 For the purpose of enhancing the security of the complex and the occupants, theOccupant shall notify the Management Company if he is to be absent from theResidential Unit for a continuous period of more than 24 (TWENTY FOUR) hours.In the event of any Residential Unit being left vacant at any time, the Grantor orManagement Company shall, in cases of emergency, be entitled to access suchunit.15. RIGHT OF INSPECTION15.1 The Grantor and the Management Company shall at all reasonable times beentitled to inspect the Residential Unit and to effect improvements or repairs.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 12 of 2916. ALTERATIONS AND ADDITIONS16.1 The Occupant shall not make any alteration, addition or improvements to theResidential Unit without the prior written approval of the Grantor and whereapplicable in terms of the Rules of the Management Association. This shallinclude the installation of air-conditioners, sun-awnings, burglar guards, doorguards or any other fixture.17. INSURANCE17.1 The Management Company shall insure the Scheme, including the ResidentialUnit, against loss by fire and in respect of any other risk or risks, which it hasconsidered advisable to do.17.2 The Occupant shall not do or permit anything whatsoever to be done which may inany way vitiate such policy of insurance or cause the premiums thereof to beincreased.17.3 The insurance of the contents of the Residential Unit shall be the soleresponsibility of the Occupant.17.4 The cost of any insurance arranged by the Management Company is included inthe Maintenance Levy.17.5 The Management Company shall furnish the Occupant with a copy of the policy ofinsurance referred to herein, together with any amendment thereto, upon theOccupant’s request in writing.18. INFIRMITY18.1 Should the Occupant or Nominated Occupant become mentally or physicallyinfirm as certified by a registered medical practitioner, he shall, if it is deemed tobe in his best interest as determined by the Management Company and the saidmedical practitioner, be transferred to the Frail Care Facility within SomersetGardens or some other more suitable institution as directed by the said medicalpractitioner. The cost of such care shall be for the account of the Occupant18.2 Should the Management Company and the said medical practitioner be unable toreach agreement in respect of the matters referred to in 18.1 above, then thedecision of the medical practitioner shall prevail.19. TERMINATION OF LIFE RIGHT19.1 The Occupant’s right of occupation shall be terminated upon the happening of anyof the following events:19.1.1 By mutual agreement between the parties that such Life Right beterminated.19.1.2 Upon cancellation of this Agreement by the Grantor in terms of Clause2019.1.3 Subject always to the provisions of Clause 22, upon the Grantor beingfurnished with a Medical Certificate as is provided in Clause 18,certifying the Occupant to be mentally or physically infirm and theOccupant vacating as a consequence thereof.19.1.4 Upon the Occupant giving two calendar months written notice toterminate his rights and vacating the Residential Unit.19.1.5 Subject always to the provision of Clause 22, upon the death of theOccupant.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 13 of 2920. CANCELLATION19.1.6 Upon the death of the Nominated Occupant or surviving spouse or JointOccupant should he or she have acquired the right of occupation inaccordance with Clause 22.20.1 Should the Occupant breach the terms of the Agreement by failing to payMaintenance Levies for a period totalling 3 (three) months and should theOccupant remain in breach after having received 30 (thirty) days written notice toremedy such breach, the Grantor shall be entitled to cancel this Agreement andrequire the Occupant to forthwith vacate the Residential Unit.20.2 Should the Occupant fail to make any other payment or payments on due date orbreach any other material term of this Agreement and fail to make such paymentor remedy such breach within 14 (FOURTEEN) days of the posting of a letteraddressed by pre-paid registered post to the Occupant, at his chosen domiciliumcitandi et executandi, the Grantor shall have the right to claim performance orcancel this Agreement summarily by directing a letter addressed to the Occupantat the said domicilium by pre-paid registered post, notifying the Occupant of suchcancellation.In any of the aforesaid events the Occupant shall be liable for any damagessuffered by the Grantor by reason of cancellation, as well as the cost of evictionfrom the Residential Unit, if occupied by the Occupant and the costs associatedwith repossession thereof by the Grantor. Alternatively the Grantor shall beentitled to take such action forthwith against the Occupant, for the recovery of thewhole Occupation Consideration (if it or any part thereof is outstanding) togetherwith any other amounts payable by the Occupant under this Agreement.20.3 In the event of the Grantor instructing an attorney to take any action against theOccupant, the Occupant shall be liable for and pay all such attorney's fees(including collection charges), as between attorney and own client.21. DEATH OR INABILITY OF OCCUPANT PRIOR TO OCCUPATION21.1 In the event of the Occupant dying prior to the date of occupation or being certifiedas mentally or physically infirm in terms of Clause 18, prior to occupation, then thisagreement shall be declared null and void ab initio, save that in the event of therebeing a Joint Occupant or Nominated Occupant or a spouse of the Occupant thenat the election of the said Joint Occupant, Nominated Occupant or spouse of theOccupant the provisions of this Agreement shall apply mutatis mutandis as ifoccupation had in fact been taken, such election to be given in writing to theGrantor at its domicilium within 21 days of event described herein occurring.22. SURVIVING SPOUSE, NOMINATED OCCUPANT, JOINT OCCUPANT22.1 The rights and obligations of the Nominated Occupant, created in this Clause, aresubject to such Nominated Occupant having counter signed this Agreement (suchcounter signature being deemed to have signified the acceptance by theNominated Occupant of the benefits and to be bound by the obligations containedherein) or the Occupant the Nominated Occupant and Grantor and ManagementCompany having signed an Addendum to this Agreement in which the NominatedOccupant accepts the benefits and agrees to be bound by the obligations ascontained in this Agreement22.2 Notwithstanding the provisions of Clause 19.1.5, the Grantor, the ManagementCompany and the Occupant agree that in the event of the Occupant havingnominated a Nominated Occupant or the Occupant not having done so and beingmarried at the time of his death or in the event of the Occupant having occupiedthe Residential Unit together with a person to whom he was not married (“JointOccupant”), and his said spouse or Joint Occupant having been in occupation ofSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 16 of 2924.7 The Grantor shall be entitled to deduct from any refund in terms of Clause 24.5any amount due to the Grantor or the Management Company by the Occupant orhis estate, inclusive of arrear Maintenance Levy, damages or the like.24.8 The aforegoing provisions shall be binding on the heirs, executors, administrators,assigns and Trustees (in the event of an insolvency) of the Occupant and hissuccessors in title.24.9 The provisions of this entire Agreement shall apply mutatis mutandis to theNominated Occupant in the event that the Life Rights are transferred to theNominated Occupant pursuant hereto.24.10 Adjustments25. PHASED DEVELOPMENT24.10.1 Notwithstanding the provisions of Clause 24.5 above the Grantor may atits option, vary the price payable in terms of Clause 24.5 as follows:24.10.1.1 By increasing the same by an amount equivalent to any costsincurred by the Occupant in respect of extras added to theResidential Unit of a permanent and capital nature less theV.A.T paid thereon subject to the increase being agreed to bythe Grantor and they being undertaken in terms of Clause 16hereof. Notwithstanding the aforegoing, extras such asadditional fencing, garden layouts, air conditioners, blinds,awnings and the like will not be considered under this subparagraph;and24.10.1.2 By reducing the said price by an amount equivalent to thedepreciation of the cost, less Value Added Tax, of all carpetsand internal painting in the cottage, over a 5 (FIVE) yearperiod, or pro-rata thereto, fair wear and tear excluded.24.10.2 Notwithstanding anything to the contrary contained herein any varying ofthe price payable in terms of Clause 24.10.1 shall be at the solediscretion of the Grantor.24.10.3 Should the Occupant wish to have the capital value of his Unit increasedbased on any improvements that he intends implementing, he shouldcommunicate his intentions to the Grantor and obtain approval from theGrantor as to the amount by which the capital value will be increased, ifat all. In the absence of acceptance by the Grantor, the Occupant shalldecide whether or not to proceed with the improvements.25.1 The Occupant (and Nominated Occupant as far as needs be) acknowledges andagrees to the development of the Land (or any remainder thereof) in phases interms of Section 25 of the Sectional Title Act or any amendment or replacementthereof.25.2 The phases of the development currently envisaged are depicted on the attacheddiagram (Annexure "B").25.3 The Grantor shall not be bound to proceed with the uncompleted phases of thedevelopment at once, but may do so in stages over a period not exceeding 15(Fifteen) years in duration.25.4 The Occupant (and/or Nominated Occupant as far as needs be) hereby consent:25.4.1 Where applicable to the Grantor preparing and submitting in terms ofSection 25 a scheme or schemes to the Local Authority in terms of thesaid Section for approval and upon such approval, taking all necessarysteps to erect additional buildings on the Land and thereafter applyingfor the registration of a Sectional Plan or Plans:Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 17 of 2925.4.2 To the imposition by the Grantor, as conditions of title, all or any of theterms of this Clause 25.25.5 The Occupant (and/or Nominated Occupant as far as needs be) agree to allow theGrantor to exercise its positive and real right to proceed with the development inthe manner envisaged herein and shall not be entitled to interfere with or obstructthe Grantor from erecting on the Common Property or any portion thereof, theadditional buildings contemplated above, nor shall the Occupant or NominatedOccupant have the right of use of or access to, to which he would otherwise beentitled, any portion or portions of the Common Property upon which additionalbuildings are being erected until such time as the aforesaid additional buildingshave been completed and the sectional plan or plans thereof registered; providedthat the Grantor shall pay all rates and taxes and imposts calculated pro rata tothe area of land involved, due in respect of such portion of the land whilst thiscondition remains applicable.25.6 The Occupant shall have no right to, or in, any such buildings, of which Units theGrantor shall be the sole owner and certificates of registered sectional title shallbe issued to and in the name of the Grantor who will be entitled to dispose of orotherwise deal with such Units for its own exclusive benefit and account.25.7 The Occupant consents to his participation quota being reviewed and adjusted asprovided for in the Act upon registration of the sectional plan or plans of theaforesaid additional building or buildings.25.8 Neither the Occupant nor any successor in title to the Occupant or any otherperson to whom the Occupant or his successors in title to the Unit has grantedany real right, shall be entitled to withhold his consent to the opening of theSectional Title Register or Registers, the phased development, as contemplated inthis Agreement.25.9 The Occupant undertakes to sign upon request by the Grantor all such documentsas may be necessary to enable the Grantor to proceed with the aforesaid phaseddevelopments.25.10 Should the Occupant fail to or refuse to sign any such document, then theOccupant hereby appoints the Grantor as his attorney and agent in rem suam tosign the same on his behalf.25.11 The proceeds of the sale of all the Units comprising the additional buildings shallbe for the Grantor's sole account and shall not be for the account of the BodyCorporate.25.12 The Grantor shall have the right, within its sole discretion, to effect variations tothe dimensions and configuration of each Building comprising the developmentand the development itself, provided that such variations shall not in a materialfashion prejudicially affect any Unit already sold."26. GUARANTEES AND QUALIFICATIONS26.1 The Occupant shall have no claims against the Grantor in respect of defects,whether latent or patent in the Unit or the common property.26.2 The Occupant acknowledges that he acquires the right to occupy the ResidentialUnit:26.2.1 Subject to the approval by the relevant authorities of the Sectional Titledevelopment to be known as SOMERSET GARDENS and to be carriedout by the Grantor on Erf 15370 Somerset West; and26.2.2 Subject to and in accordance with the Sectional Plan (as extendedconsequent upon the incorporation of the subsequent phases) and theParticipation Quota forming part thereof, and any modifications orSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 18 of 29alterations which may be made thereto from time to time in accordancewith the provisions of the Agreement or the Sectional Titles Act; and26.2.3 Subject and entitled to the servitudes for support and for essentialservices referred to in the Sectional Title Act; and26.2.4 Subject to the conditions of title contained in the title deeds of theproperty upon which this development is to be established; and26.2.5 Subject to the conditions contained in the Section 11(3)(b) schedule; and26.2.6 Subject to such conditions of title, which the local authority may imposeon the development.26.3 The Occupant further acknowledges that:26.426.3.1 The Unit will only be registered in the Grantor’s name after the openingof the relevant Sectional Title Register;26.3.2 He will not be able to withhold payment by reason of any delay causedin the opening of such Register;26.3.3 Subject to the availability of materials and the discretion of the Grantor touse other suitable materials, the Unit shall be or have been completedsubstantially in accordance with the plans and specifications approvedby the City of Cape Town as the Local Authority;26.3.4 He will not have any claim for any discrepancies of a non-material naturebetween the building plans and the completed unit;26.3.5 He is aware that there may be a certain amount of inconvenience frombuilding operations as a result of the various phases and that he willhave no claim for compensation or damages by reason of suchinconveniences.26.4.1 Subject to Clause 26.4.3 should any defects in the Unit, other than thosereferred to in Clause 26.4.2 manifest themselves within 30 (thirty)business days after the Occupation Date (the "Thirty Day Period"), theOccupant shall furnish the Grantor at its domicilium as provided for inClause 28 below, the written and signed list of such defects ("theDefects List") within 5 (five) business days of the expiry of the Thirty DayPeriod, failing which the Occupant shall be deemed to have acceptedthe Unit in good order and condition. The Grantor shall causereasonable repairs to the said defects to be effected as soon asreasonably possible after receipt of the Defects List. The Grantor and allpersons authorized or employed by the Grantor shall be entitled toaccess the Unit for purposes of inspection and effecting the said repairs.After such repairs have been effected, no liability shall attach to theGrantor in respect of any defects.26.4.2 Subject to Clause 26.4.3, should any leaks in the roof of the Unitmanifest themselves within 12 (twelve) months of the Occupation Date("the Twelve Month Period"), the Occupant shall furnish the Grantor atits domicilium as provided for in Clause 28 below, with a written andsigned list of such leaks ("the Roof Leaks List") within 5 (five) businessdays of the expiry of the Twelve Month Period, failing which theOccupant shall be deemed to have accepted the Unit in good order andcondition. The Grantor shall cause all or any reasonable repairs to thesaid leaks in the roof to be effected as soon as reasonably possible afterreceipt of the Roof Leaks List; thereafter no liability shall attach to theGrantor in respect of any such leaks.26.4.3 The Grantor's obligations in terms of Clauses 26.4.1 and 26.4.2 shall:Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 19 of 2926.4.3.1 Only apply in respect of leaks arising as a result of faultyworkmanship and/or materials used in the construction of theUnit and for no other defects or leaks, howsoever arising;26.4.3.2 Only apply, subject to Clauses 26.4.1 and 26.4.2, for so longas the Occupant is the occupier of the Unit;26.4.3.3 Not apply in respect of or arising in any way from anyalterations to the Unit effected at the instance of the Occupant;26.4.3.4 Not entitle the Occupant to claim any consequential damagesfrom the Grantor.26.4.4 A certificate by the Architect stating that any repairs to any defect or leakreferred to in Clauses 26.4.1 and 26.4.2 are reasonable or that anydefect or leak for which the Grantor is liable in terms of Clauses 26.4.1and 26.4.2 has been made good, shall be final and binding on theparties and shall relieve the Grantor from any further obligations inrespect of such defect or leak. In the event of a dispute between theOccupant as to whether or not any defect referred to in Clauses 26.4.1and 26.4.2 arose as a result of faulty workmanship and/or materials,then such dispute shall be referred to the Architect (acting as an expertand not as an arbitrator) whose decision shall be final and binding on theparties.26.4.5 Notwithstanding the provisions of Clauses 26.4.1 and 26.4.2, theOccupant shall have no claim against the Grantor, and in particular shallnot be entitled to cancel this Agreement, for any non-materialdiscrepancies of whatsoever nature (as to which a certificate by theArchitect or by the Land Surveyor or Engineer to the Scheme, will befinal and binding on the parties) between the finally approved buildingplans and specifications relating to the Unit and the completed Unit, asthe case may be, and the completed Dwelling Area. In the event of amaterial discrepancy, other than as provided in Clause 26.4.4, theGrantor shall cause same to be remedied within a reasonable time afterhaving been informed thereof in writing by the Occupant, provided thatthe liability of the Grantor shall only endure for a period of 30 (thirty)calendar days from the Occupation Date.26.4.6 After the establishment of the Body Corporate and after the Architecthas issued the Final Certificate of Completion referred to and in terms ofthe contract the Grantor will sign with the principal building contractor forthe erection of the Building, the Grantor will cede to the Body Corporateall rights the Grantor may have at the time against the Principal BuildingContractor in respect of the Building, provided the Grantor gives nowarranties as to the credibility of such rights, the effectiveness ofenforcing such rights nor anything relating thereto.26.4.7 Save as specifically provided for in Clauses 26.4.1 and 26.4.2 above,the Life Right is sold voetstoots and the Grantor shall not be liable forany defects in the Unit, whether latent or patent.26.4.8 The Occupant acknowledges that, the Grantor shall not be bound by anyrepresentations, warranties, promises, undertakings and the like madeby or on behalf of the Grantor which are not contained in thisAgreement.27. MEMBERSHIP OF THE BODY CORPORATE27.1 The Occupant acknowledges that upon being given occupation of the Unit he willreceive all the rights and obligations as a member of the Body Corporate asgranted to him by the Grantor in terms of Clause 13.1.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 20 of 2927.2 The Occupant acknowledges and accepts that he will be bound by the provisionsof:27.2.1 The Sectional Titles Act, where applicable;27.2.2 The Retired Persons Act;27.2.3 The Rules.28. DOMICILIUM CITANDI ET EXECUTANDI28.1 The Occupant hereby chooses domicilium citandi et executandi at the addressreferred to above until date of occupation and thereafter the Residential Unit. TheOccupant shall be entitled to alter this domicilium citandi by written advice to theGrantor provided it remains within the Republic of South Africa.28.2 The Grantor chooses its domicilium citandi et executandi at the address referredto above.28.3 The Management Company chooses its domicilium citandi et executandi at theaddress referred to above.29. NOTICES29.1 Notices addressed to the parties may be sent by pre-paid registered post to, ormay be delivered by hand, at the chosen domicilium citandi et executandi of theparties, as the sender thereof may choose. Any notice sent by pre-paid registeredpost to the recipient's domicilium shall be deemed to have been delivered 7(SEVEN) days after posting or, if delivered by hand, on the date of delivery.30. MAGISTRATE'S COURT JURISDICTION30.1 The Occupant hereby consents to the Grantor and/or the Management Companyinstituting any action, arising from this Agreement, in the Magistrate's Courtenjoying territorial jurisdiction for such action, notwithstanding the amount of theclaim. The aforesaid right in favour of the Grantor and/or the ManagementCompany shall not oblige it to proceed in the Magistrate's Court and it shallalways be at liberty to proceed in whatever Court it so elects.31. WARRANTIES AND REPRESENTATIONS31.1 This Agreement constitutes the entire contract between the parties and is insubstitution of any prior agreement or arrangement between them and nowarranties, representations or conditions not recorded herein shall be binding onthe Grantor and/or the Management Company, unless reduced to writing andsigned by both parties.32. AGE RESTRICTION32.1 The Unit may not be occupied by a person who is younger than 60 (SIXTY) yearswithout the authority of the Grantor who may exercise its discretion in this regardsubject to the parties observing the minimum statutory age of 50 (FIFTY) years,provided that in the case of a married couple or Occupant and NominatedOccupant applying, only one person need qualify.33. LANGUAGE34. COSTS33.1 The Occupant has chosen that this Agreement be in English and acknowledgesthat a copy of the Contract has been furnished to the Occupant.34.1 The Grantor shall pay the legal costs relating to the drafting and signature of thisAgreement.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 21 of 2935. MORTGAGE BOND35.1 A first mortgage bond encumbers the land and advances are made against thisbond in order to cover the construction costs of Units as they are sold and built.Each Unit is released from the bond upon transfer of the Unit into the name of theOccupant. Accordingly the bond encumbers no Units that have been occupied byOccupants.36. AGENT’S COMMISSION36.1 Commission shall be paid by the Grantor to the Agent through whose introductionand effective agency this sale has been concluded, provided however that shouldthe Occupant breach any term of this Agreement, the Agent shall be entitled, butnot obliged to recover the commission from him.37. ENDORSEMENT OF TITLE DEED37.1 The Title Deed of the land upon which the Residential Unit is situated, has beenendorsed in terms of Section 4 C of the Retired Persons Act to the effect that theland is subject to a housing development scheme as defined in the said Act.37.2 A certificate contemplated in Section 6(1)(c) of the Retired Persons Act will beissued upon completion of the Unit and a copy thereof will be delivered to theOccupant.38. ENDOWMENT, BETTERMENT OR ENHANCEMENT LEVY38.1 No amount is payable in respect of the Residential Unit as endowment, bettermentor enhancement levy or development contribution or any similar imposition.39. VALUE ADDED TAX39.1 The amounts reflected in Clauses 1.29, 1.30 and 1.31 are exclusive of ValueAdded Tax. Any Value Added Tax applicable to these charges will be added tothe amount due at the rate applicable from time to time.40. FACILITIES AND SERVICES40.1 The following facilities are provided at the Somerset Gardens Retirement Village:The Frail Care Facility, which provides for the care of debilitated persons;Community Dining Facilities;A Communal Lounge;A Garden and Domestic Cleaning Service;40.2 Persons utilising certain of the aforesaid facilities will be required to pay amountsper tariff, fixed from time to time by the Management Company, which tariff maybe inspected at the offices of the Grantor and Agent.41. OFFER TO PURCHASEInasmuch as this Agreement, signed by the Occupant and delivered to the Grantor, shall constitute anoffer to purchase the Life Right, such offer shall not be capable of being withdrawn and shall remain openfor acceptance by the Grantor signing same within 30 (thirty) days after the date of signature by theOccupant42. SPECIAL CONDITIONS42.1 Despite representations made in any marketing brochure to the contrary, theOccupant will be responsible for telephone installation, instrument, line rental and callcosts.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 22 of 29Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 23 of 29REPLACE THIS PAGE WITH THE CORRECTPERSONAL PARTICULARS PAGESale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 24 of 29SIGNED at ………………..…………… on this …...…… day of ….……..…………………. 200….As Witness:1 ……………………………………… ………………………………Grantor2 ………………………………………SIGNED at ………………..…………… on this …...…… day of ….……..…………………. 200….As Witness:1 ……………………………………… ………………………………Management Company2 ………………………………………SIGNED at ………………..…………… on this …...…… day of ….……..…………………. 200….As Witness:1 ……………………………………… ………………………………Occupant2 ……………………………………… ………………………………Date of BirthSIGNED at ………………..…………… on this …...…… day of ….……..…………………. 200….As Witness:1 ……………………………………… ………………………………Nominated Occupant2 ……………………………………… ………………………………Date of BirthSale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 25 of 29Section 4(1) of the Act:(a)SOMERSET GARDENSLIFE RIGHTS AGREEMENTDisclosure ScheduleAnnexure AThe names of the Occupant and the Grantor and their residential or business addresses inthe Republic:This information is set out in the Agreement.(b)A concise description of the legal basis upon which the housing interest concerned is to bealienated:The housing interest is alienated as a right of use and occupation of a residential unit for their lifetimeor the lifetime of their spouse, more commonly known as a “Life Right” and subject to the RetiredPersons Act.(c)The duration of the housing interest and any limitations thereon:The housing interest shall endure for the lifetime of the Occupant or their spouse unless terminatedearlier in terms of Clause 19 of the Agreement.(d)A statement as to whether the housing interest is registerable:The housing interest is not registerable, however, the title deeds of the land on which the housingscheme has been erected have been endorsed in terms of Section 4c of the Act(e)A description of the Land concerned, including the Erf and unit number (if any), the extentthereof and the magisterial district in which it is situated:Erf 15370 Somerset West, situate in the City of Cape Town, Division of Stellenbosch, Western CapeProvince and measuring 11.8300 Hectares.(f)A statement as to whether the land is held by the Grantor by virtue of ownership orotherwise:The Grantor is the registered owner of the land. Once the Sectional Title Register has been opened,the common property will vest in the name of the Body Corporate, subject to the Grantor's Real Rightof Extension in terms of Section 25 of the Act.(g)Not Applicable(h)If the Grantor is not the owner of the land:If the land is encumbered by mortgage bond:i. The name and address of the person in favour of whom the mortgage bond isregistered:ABSA Bank Limited of P O Box 3873 Tyger Valley, 7535 and Somerset Business Park Trust of P OBox 61, Somerset West, 7130ii.Bond Amounts, ABSA:The outstanding balance owing by the mortgagor in terms of the mortgage bond:Phase 1: R 6 630 639.00Phase 2: R34 580 000.00Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 26 of 29Phase 3: R31 730 000.00VAT Facility: R1 200 000.00Bond Amount, Somerset Business Park TrustLand Purchase: R3 844 750.00R30 000.00(i)In the case of a housing interest consisting of a right of occupation, the amount, if any, ofthe consideration payable by the Occupant which will be applied by the Grantor in reductionof the outstanding balance owing by the mortgagor in terms of the mortgage bond:The amount or nature of the consideration concerned:This is set out in the Agreement in Clause 1.7.(j)The annual rate at which interest (if any) is to be paid on any balance in respect of theconsideration:This information is set out in the Agreement in Clause 1.20.(k)The amount, or the method of determining the amount, of each instalment payable in termsof the contract in reduction or settlement of the consideration concerned (if any):This information is set out in the Agreement in Clause 6.(l)The due date or method of determining the due date of each such instalment:This information is set out in the Agreement in Clause 6.(m)If a certificate contemplated in section 6(1) has not been issued at the time the contract isconcluded, the latest date by which such certificate, subject to subsection (2), will be issuedand furnished to the Occupant:This information is set out in the Agreement in Clause 1.8(n)A statement of the place where and the hours during which rules (if any), in accordance withthe housing interest concerned is to be utilised, may be inspected:At the head office of the Grantor being 59 Southfield Road, Plumstead during normal office hours,Monday to Friday, excluding public holidays.(o)A statement:i. Of the location, nature and extent of any facilities or services which are to beprovided or rendered in connection with the housing interest concerned:The facilities to be provided are the following:• Frail Care Facility. Pay to Use. Suitable for debilitated persons. To be completed once 125Residential Units have been built, sold and occupied.• Assisted Care Units. Pay to Use. To be constructed according to demand but will only becommenced once 150 Residential Units have been built, sold and occupied.• Kitchen and Dining Facility. Pay to Use. To be completed once 150 Residential Units havebeen built, sold and occupied.• Community Centre including communal lounge, indoor swimming pool, mini gymnasium, andcraft and hobby rooms. Included in Maintenance Levy. To be completed once 200 ResidentialUnits have been, built sold and occupied.• Croquet Lawn. Included in Maintenance Levy. To be completed once 100 Residential Unitshave been built, sold and occupied.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 27 of 29• Garden Nursery. Included in Maintenance Levy. To be completed once 100 Residential Unitshave been built, sold and occupied.• Garden Nursery. Included in Maintenance Levy. To be completed once 100 Residential Unitshave been built, sold and occupied.• Perimeter Fencing. Included in Maintenance Levy. To be completed in stages alwaysensuring that the portions of the Housing Development Scheme already built and occupied aresecure, but in any event, to be completed once 150 Residential Units have been built, sold andoccupied.• Gate House. Included in Maintenance Levy. To be completed before the first Residential Unitsare occupied.• Refuse Bin Removal Area. Included in Maintenance Levy. To be completed before the firstResidential Units are occupied.• Internet Access. Included in Maintenance Levy. To be completed in stages with the serviceonly commencing once 50 Residential Units have been built, sold and occupied.• MNet/DSTV Connection. The facility is included in Maintenance Levy but Licence Fees areOccupant’s responsibility. To be completed in stages with the service commencing when thefirst Residential Units are occupied.The Services to be provided:• Twenty-four hour security and gate control. Included in Maintenance Levy. To be providedwhen the first Residential Units are occupied.• Daily Dining Service, either at midday or in the evening. Pay to Use. To be provided once 150Residential Units have been built, sold and occupied.• Refuse Removal. Included in Maintenance Levy. To be provided when the first ResidentialUnits are occupied.• Maids Service. Pay to Use. To be provided when the first Residential Units are occupied.• Garden Service. Included in Maintenance Levy except for personal or private gardening needs,which are Pay to Use. To be provided when the first Residential Units are occupied.• Cottage Nursing Care. Included in Maintenance Levy except for medication and specialisedtreatment. To be provided once 125 Residential Units have been built, sold and occupied.ii.Of the rights and obligations of the Occupant in connection with the utilisation ofthose facilities or services:The Occupant shall have the right to be accommodated in the Assisted Care Units and/or the FrailCare Facility subject to availability of rooms/beds and further subject to the payment of the AssistedCare Units rental and/or the Frail Care Facility levy as the case may be as further detailed in theAgreement in Clauses 11 and 12.iii.Without derogating from the above, as to whether such facility or service for the careof debilitated persons:The Frail Care Facility provides for the care of debilitated persons.iv.Of the date by which the facilities or services contemplated in subparagraph (i) and(ii) will be provided or rendered:The dates based on milestones on which these facilities or services will be rendered are set outabove.(p) A statement of the official language chosen by the Occupant under section 3:English(q)The date on which the Occupant will become entitled to utilise the housing interest:Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 28 of 29This information is set out in the Agreement in Clause 1.8(r)On occupation.(s)If applicable, the date on which the risk of the housing interest shall pass to the Occupant:A statement of the obligation (if any) of the Grantor or the Occupant to insure the subjectmatter of the contract:The Body Corporate or the Management Company on its behalf insures the Residential Unit in termsof Clause 10 of the Agreement.(t)A statementi. Of any amount which in terms if any law is payable in respect of the land asendowment, betterment or enhancement levy, a development contribution or anysimilar imposition, and an indication of the person to whom and the person by whomit is payable; orii.That no amount contemplated in subparagraph(t) i. is payable in respect of the land,if such is the case:No endowment, betterment or enhancement levy is payable.(u)An indication of the party who is liable for the payment of the costs of drafting of the contractand (if applicable) the transfer of the land:The Grantor as Grantor is responsible for these costs.(v)If the Grantor is the owner of the land, an undertaking by him that the land will not beencumbered or further encumbered by a mortgage bond, as the case may be:The Grantor is the owner of the land and hereby gives an undertaking not to further encumber theland by a mortgage bond save as is already disclosed herein.(w)Not Applicable(x)If applicable, the period within which the Occupant is obliged or may be compelled to taketransfer of the land against simultaneous payment of all amounts owed by him in terms ofthe contract:An estimate of, for a period of three years in advance, of all expenditure for the control,management and administration of the housing development scheme and all services andfacilities concerned, and an indication of the person or persons who will be liable for thepayment thereof, and a statement, that over and above any levy contemplated in paragraph(y), the Occupant will not be liable for the payment of any such expenditure:The estimate is set out in the Agreement in Clause 1.28The Management Company will be liable for the payment of this expenditure.The Occupant will not be liable for the payment of any amounts over and above the levycontemplated in paragraph (y),(y)A statement of the basis on which any levy payable by the Occupant is to be calculated,and an estimate for a period of two years in advance of the amount of the levy:The basis on which the levy is calculated is set out in the Agreement in Clause 10.6The estimate for a period of two years in advance is set out in the Agreement in Clause 1.29.(z)A reference to the rights and remedies of the Occupant in terms of subsection (3) andsections 8 and 9.The Occupant has specific rights and remedies in terms of the Act as contained in Section 4 (3) andSections 8 and 9.Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials

Page 29 of 29(aa)A statement as to the percentage of the total number of housing interests in the housingdevelopment scheme concerned which is reserved for alienation to retired persons only:At least 90% of the housing interests will be reserved exclusively for alienation to, and occupation by,retired persons. Certain accommodation may be occupied by essential staff.(bb)A concise outline of the management structure or proposed management structure of thehousing development scheme concerned:This information is set out in the Agreement in Clauses 9, 10, 11, 12 and 13.(cc)Such further particulars as may be prescribed by regulation:This information is set out belowRegulations:Other than as detailed below, the information or disclosures required in terms of the Regulations tothe Act are as set out above.5 (k) A statement as to whether the developer has a direct interest in the managing agent:The developer being the Grantor and the managing agent being the Management Company areseparate legal entities and the developer has no direct interest in the managing agent. However,there are common shareholders of both companies.5 (s) A statement as to the age of the accommodation.The development scheme was commenced in 2005.5 (u) Particulars of any other housing development scheme in which the developer was directlyor indirectly involved in any capacity, including as an architect, developer, or otherwise:Certain shareholders of the developer are involved in the Waterfall Gardens Retirement Villagedevelopment in Waterfall, Kwazulu Natal.6 Managing AgentThe developer has appointed a Management Company as managing agent for the entiredevelopment including the Frail Care Facility and the Assisted Care Units. Should the ManagementAssociation and/or its Trustees who are elected by the Members terminate the appointment of theManagement Company, then the provisions relating to the Maintenance Levy and Frail Care Levybeing fixed for the term of the Agreement shall fall away.8 Body CorporateThe Body Corporate has assigned and ceded its rights and duties in terms of the Regulations to theManaging Agent.14 Levy CalculationThe provisions of Regulation 14 (a) have been suspended by the developer and have been replacedby the method of calculating the Maintenance Levy as set out in the Agreement in Clause 10.6. Inthe event that the Body Corporate terminates the management agreement then the provisionsrequiring the Management Company to fix Maintenance and Frail Care Facility Levies for the durationof the Agreement shall be terminated and the provisions Regulation 14 (a) shall be re-instated.Application has been made to the Department of Trade and Industries in terms of Section 10 of theRetired Persons Act for exemption from Regulation 14 (a).Sale Agreement - Life Rights Version 4.docRevision No 11 Saved 17/04/2007 11:08 PMInitials