A nerve-wracking but exciting part of buying a property happens just after you have fallen in love with the property, and you make an offer!
The Seller’s Real Estate Agent will compile the OFFER TO PURCHASE but as it is a legally binding step in the process (and you only qualify for a cooling off period if the property costs less than R250 000) and a cancellation of an offer can become costly! So before you sign, ensure that you understand all the terms, and you have taken the following into consideration:
- Defects are not always deal-breakers, but they may affect the price of the property. You should inspect the property for any defects stated on the seller’s mandatory disclosure. Any other buyer’s preferred inspection such as a professional home inspector, will be for the cost of the buyer, at least ensure that you have double-checked the property for any visible defects.
- Ensure that all extensions to the property are on the approved plans and make this a condition of your offer to purchase.
- Unless you are paying cash, and even if you have your pre-qualification, your offer will be conditional on the loan being approved by a specific date.
- If you need to sell your existing home, you will need to set a time limit, so that the seller is not put at a disadvantage.
- Indicate clearly which fixtures, fittings and movables you want to be included in the sale.
- A seller can charge you occupational rent if you need to move into the property before the transfer is complete, to ensure that there are no issues double-check the date you need to move in and what the occupational rent will be.
- Ensure that the seller has completed and paid for all the relevant compliance certificates.
- If your offer is conditional on certain actions by the seller ie renovations or maintenance, then ensure that you have clear deadline dates for when the work must be completed.
- As this is a negotiation, conditions can be added to an offer to purchase and accepted, amended, or rejected by the seller.
- If you are unsure about any part of the offer then speak to your own Attorney, Estate Agent or Mortgage Broker as once you sign it is legally binding… but also your new home!
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Martin on 082 447 3463 or Shannon in the Western Cape on 084 701 2865