Before you rush into purchasing your dream family home, it’s crucial to be aware of potential mistakes that can occur during the process. Here are some important points to consider before Signing an Offer to Purchase:

1. Carefully Review the Offer to Purchase (OTP):

Understand that once the seller accepts a signed OTP, it becomes a legally binding document. Take the time to thoroughly comprehend the terms and conditions outlined in the OTP before proceeding. Any inaccuracies can lead to void contracts.

2. Check for Accuracy:

Ensure all details in the contract are accurate, including buyer and seller information, commissions, offer dates, occupation dates, and expiration dates.

3. Property Description:

The property description in the OTP should match what is stated on the title deed. It should include a detailed description of the property, erf number, precise measurements, original purchase price, and any sale restrictions.

4. Verify Purchase Price:

Double-check that the purchase price is correctly listed in the contract and consider adding an offer expiry date to set a deadline for acceptance or negotiation.

5. “Conditions of Sale” Clause:

Buyers have the right to include specific clauses in the contract that require sellers to fulfill certain conditions or repair defects before completing the sale. It’s also important to itemize any movable items included in the sale agreement.

6. Deposit and Occupational Rent:

If you plan on providing a deposit for your property purchase, include it in your Offer to Purchase and specify your desired move-in date. If there is a need for temporary occupancy by either party beyond this date, negotiate an agreed-upon occupational rent.

7. List Certifications and Payment Responsibility:

Include all necessary assessments and certifications such as electrical certificates or pest control certificates within your Offer to Purchase documentation. Clearly state who will be responsible for paying for these assessments.

Once you have carefully considered all aspects of the Offer to Purchase agreement and are satisfied with its conditions and details, you may proceed with Signing an Offer to Purchase. After submission, you will typically receive notification within a few weeks regarding acceptance or rejection of your offer – at which point you can proceed with applying for your home loan. Visit our Blog for more tips on buying or selling property.