Understanding the Offer to Purchase in the property market

IN SOUTH Africa’s property market, signing an Offer to Purchase (OTP) is often seen as a milestone, a moment of triumph after weeks or months of house hunting.

- DIEKETSENG MALEKE

But beneath the excitement lies a sobering truth: once signed by both buyer and seller, the OTP becomes a legally binding contract. Unless the property is priced below R250,000, where a cooling-off period applies, there’s no easy way to back out without risking legal or financial consequences.

Many prospective buyers underestimate the weight of this commitment. Whether you’re a seasoned homeowner or navigating the process for the first time, it’s crucial to understand that the deal isn’t sealed until all suspensive conditions are met. According to agents from the Seeff Property Group, most failed transactions aren’t due to cold feet, they’re the result of practical, often overlooked hurdles.

Even after the seller accepts your offer, the transaction is far from guaranteed. Suspensive conditions, those clauses that must be fulfilled before the sale can proceed, are often the reason deals fall through. And while we often hear stories of buyers backing out or sellers changing their minds, the truth is that most failed transactions stem from practical hurdles.