When does
the sale become finalized?
As soon as
the seller signs the offer to purchase, acceptance of your offer formally takes
place. The document now becomes a valid agreement of sale and no further
formalities are needed to finalise the deal. Until the seller actually signs
the offer, no contract exists.
Can I withdraw my offer after signing it?
The offer
will have a period of time for acceptance by the seller, usually a few days
after you have signed it. Offers are normally irrevocable. Until this period expires you cannot withdraw it. The seller may accept the offer at any time during
the specified period.
How long does the seller have to respond?
This will
depend on the time period you are prepared to allow him to do so. Your agent
will guide you on this, but you should not allow the seller more than a few
days to accept or revoke the offer. If nothing happens during this period your
offer will lapse.
Can the seller accept the offer conditionally?
Yes, he may,
but he is effectively making a counter-offer to you and the sale will only be
finalised if and when you are prepared to accept his terms. These can be
negotiated through your agent. No sale will actually exist until you both agree
on all its terms.
Can the estate agent withhold the offer?
No. Once
you have signed an offer to purchase which has been drawn up by an estate
agent, the agent is compelled to submit it to the seller forthwith. Your agent
may not withhold it if he/she gets a better offer immediately after yours or
present that offer first.
What if the seller receives two offers simultaneously?
If two
different agents bring offers from two different prospective purchasers at the
same time, the seller has complete freedom either to reject both offers or to
accept the one he prefers and reject the other. He does not have to give either
of them preferent attention.
Must he sell to me if I offer his asking price?
No. Even
if the seller has given a mandated selling price to an agent he is not obliged
to accept an offer at this price. You are the one making the offer, not him. If
he rejects it he may still be liable to the agent for commission as the agent
will have completed his/her mandate.
Is a verbal acceptance by the seller enforceable?
No. Even
if he phones you and says he is accepting your offer but then changes his mind
and does not sign, no contract will exist. By law all property sales must be
reduced to writing and signed by both parties before a valid agreement of sale
takes place.
Can the seller accept the offer after the expiry date?
Not unless
you are still willing to buy his property and you are willing to sign an
addendum extending the acceptance date. Otherwise the offer will lapse
automatically once the stipulated period expires and the seller has not
formally accepted the offer.
Can the seller reject the offer and then change his mind?
No,
definitely not. If he advises you or the estate agent, before the expiry date,
that he is not willing to accept your offer, then he is deemed to have formally
rejected it. He may not thereafter change his mind and accept it – unless it is
with your consent.
On what date should occupation be given and what is occupational rental?
Occupation
should be agreed on a date mutually suited to both parties. It will often
occur, however, that one of the parties is in occupation of the property while
it is registered in the other's name, thus requiring the occupier (who may be
either a buyer or seller) to pay a rental to the owner. Entitlement to such
rent is not automatic and should be specified in the Agreement of Sale. The
rental amount is usually agreed at a level commensurate with rentals available
in the market.
What if a tenant has a lease that overlaps the transfer date?
Upon
taking occupation of the property, the tenant acquires a real right thereto for
the duration of the lease and will be protected by the "huurgaat voor
koop" principle. The new landlord takes over the role of his predecessor,
who in turn is relieved of obligations towards the tenant.
Is the Purchaser ever liable for commission?
Strictly
speaking, commission is payable by the party who conferred upon the Estate
Agent the mandate to act on his/her behalf. In reality, however, it seldom
happens that South African buyers pay commission (unless the Purchaser defaults
on the sale).
Can I withdraw my offer after signing it?
How long does the seller have to respond?
Can the seller accept the offer conditionally?
Can the estate agent withhold the offer?
What if the seller receives two offers simultaneously?
Must he sell to me if I offer his asking price?
Is a verbal acceptance by the seller enforceable?
Can the seller accept the offer after the expiry date?
Can the seller reject the offer and then change his mind?
On what date should occupation be given and what is occupational rental?
What if a tenant has a lease that overlaps the transfer date?
Is the Purchaser ever liable for commission?
Go back to Legal main page, Seller Section or Buyer Section
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