Purchasing a house is an exciting and rewarding process, but it is not as simple as purchasing a bag of groceries.
There are contracts involved, transfer of title, loans, financing, taxes, and much more involved than the average sale and purchase of goods.
There are specific requirements that are mandatory when you decide to purchase a house. You must receive an offer to purchase template.
This is a document that any potential buyer of a house presents to the prospective seller to express their desire and interest in purchasing the property.
Once the seller goes through the offer to purchase form, they can decide either to accept or decline the form. Here is what you should know.
How to accept an offer to purchase letter?
Acceptance to the proposal by the seller is shown by placing one’s signature on the offer to purchase contract.
Offer to purchase real estate template
There are various forms of an offer to purchase template, including an offer to purchase template South Africa word document and an offer to purchase form private sale South Africa. Here is a list of standard examples of the document for you to choose one that meets your needs best:
- Template 1
- Template 2
- Template 3
- Template 4
How do you make an offer to purchase?
The document is prepared by a buyer and presented to the property seller to express interest in buying the property at hand. The document should have certain particulars which include:
- The buyer’s particulars
- The commission owed to the agent of the estate or broker as agreed upon by the parties involved
- The occupation date – this refers to when the seller is expected to vacate the house to allow the buyer to move in
- The occupational rent – this refers to the rent that the potential buyer pays before fully paying off the property price while still occupying it
- The cost of the property
- The property’s information as it is described on the title deed
- The seller’s particulars
- The special conditions if any
Can you pull out of an offer to purchase?
The answer is no. Once a seller accepts the proposal to purchase contract, it becomes legally binding to both parties. This means that if either party does not follow through the set agreement, the other party is allowed to pursue legal action against them.
How long is an offer to purchase valid for?
The document is valid in most cases, but there are four instances when it is termed as invalid. They are:
When the buyer retracts the offer
The buyer can at any time revoke their proposal after presenting it to the seller, but only before the seller signs it. Interesting to note, if signed by the seller, it becomes legally binding.
When the seller rejects the offer
If the seller of the property turns down the proposal presented to them, then it is not legally binding to the parties.
When the specified time on the offer to purchase lapses
The buyer always indicates a specific time on the document, which they expect the seller will use to read the proposal and sign if they are interested in the deal. However, if the time allocated comes to an end, the offer is declared null and void.
When either party dies
If either the potential seller or buyer dies before signing the proposal, it is declared null and void. However, if the signing of the document has already taken place, the responsibilities of the offer are passed down to the deceased estate.
What happens after offer to purchase?
Once both parties meet their obligations to the agreement, the buyer becomes the new owner of the property.
Facts you need to know
- Errors do not make a contract void – they can be corrected through unambiguous and worded amendments. However, it is wise that both the buyer and seller formally recognize the changes by initialling next to them on the document.
- All blank spaces must either be filled in or deleted from the document.
- Inappropriate clauses must be deleted from the document.
- To avoid confusion or outright invalidation, the phrase “To be agreed upon” should not be used to fill in any blank space.