Let’s have a quick look at what an Offer to Purchase or OTP is. It is also known as The Sale Agreement or the Agreement of Sale. It’s a document that when signed becomes legally binding and pertains to the sale and eventual property transfer of ownership from 1 party to another.

What is included in an Offer to Purchase or OTP?

An Offer to Purchase or OTP will run from about 10 – 15 pages, depending on the Agent or the Agency you are working with when you sell your Randburg property. At eXp South Africa our documentation is not just fabulous in looks, the duplication is minimal which is good for all of us. But essentially the Offer to Purchase or OTP that a buyer will put forward when you sell your Randburg property includes the following:

  • Full party details is a part of the Offer to Purchase Agreement that provides all the details of the Seller(s) including their ID numbers, contact information and email addresses.
  • The price the Offer to Purchase also clearly states what the Buyer is offering when buying your property.
  • How is the price made up?  How is the price made up is also clearly stated on the Offer to Purchase?  Will it be a Cash sale, will there be a deposit and when would it be due, is it a Bonded Sale.  Are there other suspension conditions?
  • Suspensive conditions on the Offer to Purchase are the undertakings and legal obligations that the Buyer undertakes when buying your Randburg property. This could include getting a bond approved. Selling another property in order to be able to finance the sale of a property. Remember that the Seller has what we call the 72-hour ratification clause which allows the Seller to continue marketing their property to ensure a better offer in value or in the duration it could take to sell a property improves. Legally a Buyer will be given between 48 hours and 72 hours to match or better the terms of the Sale Agreement and certainly, if an offer is made subject to the sale of another property.
  • Other Conditions there is provision on the offer to purchase to include and clearly confirm on paper what is included or specifically excluded with your sale.  If it’s not on the Offer to Purchase the conversation never happened.  This is done to protect all interested parties.
  • Occupational Rent – Is now a legal requirement on the Offer to Purchase and this covers you the Seller moving out earlier if agreed or moving out after transfer, if agreed. The amount payable to the attorneys in respect of Occupational Rent is agreed and stated on the Offer to Purchase and signed by all parties.
  • The costs and fees that are stated on the Offer to Purchase outline and confirm which costs will be carried by the Buyer include all bond-related costs, transfer costs and conveyancing costs.
  • The costs and fees are always presented on the Offer to Purchase that are carried by the Seller in respect of Commission, VAT, FICA costs, all Electrical Compliance Certificates, Rates Clearance Certificates, etc.
  • The responsibilities in terms of the Seller costs are also stipulated on the Offer to Purchase.  We would be happy to provide you with further information. Call Sandy on (083) 550 1220.
  • The description of the property on the Offer to Purchase is imperative and includes the ERF number, the stand number, the unit number, the street address and the size of the freestanding property or the sectional title where the buyer is putting in an offer.
  • Signatories on the Offer to Purchase refer to all interested and invested parties. All the relevant Sellers, all the relevant buyers and a full-status property practitioner who is authorised to conclude a property sale and transaction. This also includes the relevant PPRA accreditation authorising this full-status property practitioner to discharge the duties required to sell and conclude a property transfer.  Please remember that once your buyer has signed the Offer to Purchase and you as our Seller has signed the Offer to Purchase this becomes a legally binding contract.
  • Remember that the Property Condition Report we mentioned in a previous article, well this document and report must be included with the Offer to Purchase when the sale is instructed to the Seller’s appointed attorneys.
  • Bond finance on the Offer to Purchase is always indicated and Cornerstone Realty will always work closely with the Buyer to assist in securing bond finance to support the purchase of your property when you sell. If you need assistance, call Sandy on (083) 550 1220.

An Offer to Purchase is a legally binding contract

And this offer to purchase binds our buyers that would like to put in an offer on your home to you the seller selling your Randburg property.  The elements that must be included in the Offer to Purchase are outlined above and an Offer to Purchase should ALWAYS be supported with a Property Condition Report.  The two documents, the Offer to Purchase and the Property Condition Report are submitted to the Sellers appointed attorneys to set the property transfer in motion.  If you have a question or need help, call Sandy from Cornerstone Realty on 083 550 1220.

Is it time to get started on the Sale of Your Randburg Property?

Call Sandy Graham on (083) 550 1220 for more information about the sale of your property or the role of the Offer to Purchase. I work with Nicole in a team called Cornerstone Realty and our business is powered by eXp South Africa, one of the fastest-growing real estate brands in SA and the world. And trust me, we would love to show you what we can do.

Randburg Estate Agent

Written by Sandy Graham from Cornerstone Realty on (083) 550 1220 and powered by eXp South Africa.

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