How Long Is An Offer To Purchase Valid For In South Africa

The deadline date is included in the agreement.

The buyer stipulates the deadline date which the seller has to accept.

If no deadline date is stipulated, the Offer to Purchase will be valid for what is termed “a reasonable period”.

It’s best to avoid this ambiguity by stipulating a deadline date.

72-hour clause

Buyers need to be aware of the 72-hour clause.

This stipulates that the seller can continue marketing the property, and can accept a better offer, but only after providing the buyer 72 hours to meet their obligations.

If the buyer does so within 72 hours then the seller cannot accept a rival offer.

Is OTP binding in South Africa?

The Offer to Purchase (“OTP”), becomes a binding sale agreement to sell property as soon as the seller accepts and signs it (in accordance with the Alienation of Land Act of 1981). No contract is entered into if the seller verbally acknowledges the offer but fails to sign it within the time frame specified.

How does an offer to Purchase work in South Africa?

An Offer to Purchase is a legally binding contract; once you sign it, you cannot withdraw without incurring penalties. As a prospective buyer, you should make sure your finances are in order and obtain bond pre-approval before making an offer.

Can you withdraw an offer to purchase in South Africa?

Simply put, this is not a good idea. The offer to purchase is a binding contract, and withdrawing from it will incur penalties.

Can a buyer cancel an offer to purchase in South Africa?

Most sellers will refuse to remove this clause. The offer is less than R250 000. In order to protect low-income buyers, the law allows for a buyer to cancel the offer if it amounts to less than R250 000, but only if written notification is provided to the seller within five days of signing the offer to purchase.