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The offer to purchase: what to check before you sign
A signed offer to purchase is a binding contract, and for most homes you cannot simply change your mind afterwards. Before you sign, check the parties, the price, the deposit, the suspensive conditions, the occupation date and what is included in the sale. If a clause is unclear, ask for it to be explained or rewritten, and speak to an attorney if you are unsure.
Why the document matters
The law says a sale of land has no force unless it is in a written deed signed by the parties, or by agents who have written authority to sign for them. A verbal promise, a WhatsApp message or a handshake does not do the job. This also means that anything the seller promised you must be in the document. If the agent says the seller will leave the curtains or fix the geyser, make sure it is written in.
Once both sides have signed, you are bound by every clause, including the ones you did not read. That is why it is worth slowing down.
A checklist to read before you sign
- The parties. Check the full names and ID numbers of the seller and of you. State your marital status correctly. If you are married in community of property, a spouse generally has to give written consent to sell or to take out a bond, so ask whether that applies.
- The property. The erf number (the municipality’s unique number for a stand) or the unit and section number, and the address, must match the title deed. For a sectional title unit, check the exclusive use areas such as parking bays and gardens.
- The price and how it is paid. Confirm the figure, how much is cash and how much is a bond, and the dates for each.
- The deposit. Who holds it, when it is due, and who earns the interest. It often goes into the transfer attorney’s trust account, but only if the offer says so.
- Suspensive conditions. These make the sale depend on something happening, such as you getting a bond by a set date. Read suspensive conditions explained and check every date.
- Occupation and occupational rent. If you move in before registration, you usually pay the seller rent for that time. The date and the amount must be in the offer. The same applies in reverse if the seller stays on after registration.
- Fixtures and fittings. List what stays: stove, light fittings, curtain rails, built-in cupboards, alarm, solar panels, pool equipment. If it is not listed, do not assume it stays.
- The voetstoots clause. It means you buy the property as it stands. Know what it does and does not cover. See voetstoots and latent defects.
- Compliance certificates. Who must provide the electrical certificate and any others, and who pays for repairs needed to get them. Our guide to compliance certificates explains which ones may apply.
- Transfer costs. The buyer normally pays transfer duty, the attorney’s fees and bond registration costs. Check that the offer matches what you have budgeted. Try the transfer costs calculator.
- Commission. Usually the seller’s cost, and negotiated with the agent. The offer should say so.
The disclosure form
If an agent is selling the home, the agent may not take the mandate unless the seller has completed and signed a disclosure form listing known defects. The agent must give you a copy before you make an offer, and it must be attached to the sale agreement. If it is missing or unsigned, the agreement is read as if the seller disclosed no defects. If there is no agent and the seller is selling privately, no such duty applies, but you can ask the seller to list known defects in writing. Read more about the mandatory disclosure form.
Cooling-off and changing your mind
The cooling-off right in the Alienation of Land Act falls away if the price is more than R250 000, so it will not apply to most home purchases. Do not count on being able to withdraw. We explain the rules in is there a cooling-off period when you buy property?
Practical steps before signing
- Ask for the offer in advance, not at the viewing.
- Read it all, including the small print and the annexures.
- Highlight anything you do not understand and ask for an explanation in plain language.
- Have an attorney of your choice look at it if the deal is complicated, if it involves a trust or company, or if you are unsure about a clause.
- Make sure every change is initialled by both sides, and keep a full signed copy.
What to do next
- Check that the deal is within your means with the affordability calculator.
- Work out the cash needed on top of the price in the transfer costs calculator.
- Read how long property transfer takes so you know what happens after you sign.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.