The Offer to Purchase / Sales Agreement

The Offer to Purchase contains all the material terms on which the parties agree, such as the date of occupation, occupational rent, suspensive conditions by the Purchaser. Once you have signed an Offer to Purchase and it has been accepted in writing by the Seller, you are legally bound to the transaction.

After negotiations, the deposit (if any) should be paid into a trust account of a registered Estate’s Agent or an Attorney until transfer of ownership is completed, interest being for the benefit of the Purchaser. Give a written instruction to pay the interest to the Purchaser; failing to do so will result in payout to the Estate Agent’s Fidelity Fund.

Suspensive Conditions

The most common suspensive condition is the delivery of the Bank Guarantee for the payment of the purchase price. There is usually a time limit within which the guarantee is to be delivered.

Cooling-off period

After signing an Offer to Purchase, you have a seven-day cooling-off period in which to withdraw and cancel the Offer to Purchase should you wish to do so. NOTE: This only applies to properties with a purchase value less than R 250 000.

These seven days exclude weekends and public holidays. This cancellation notice must be done in writing to the Seller or Estate Agent by no later than 24:00 on the seventh day. Once the cooling of period has lapsed, the Offer to Purchase will be a legally binding contract. If in doubt, consult with an attorney.

Home ownership entails quite a few costs – See Costs of Buying