Putting in an Offer to Purchase

Normally, once you have seen a property you like, an estate agent will help you draw up an "Offer to Purchase". This document contains all the terms and conditions of the sale, the purchase price, the payment terms, the date you will take occupation of the property, and the occupational rent. Occupational rent is a monthly amount paid to the seller by the purchaser to occupy the property prior to the date of registration of transfer of the property into the name of the purchaser. Alternatively occupational rent could be paid by the seller to the purchaser if he/she needs to continue occupying the property for a period after registration of transfer. In the absence of an Estate Agent an attorney can assist the parties in reaching an agreement in this regard - alternatively a standard "offer to purchase can be bought at CNA. It is always advisable to have an Attorney draw up a final agreement once the buyer and seller have agreed upon a price as this can prevent problems at a later stage.

If you plan to take out a home loan, the "Offer to Purchase" must include a condition that the sale is subject to bond approval being obtained within a realistic amount of time i.e. 7 to 10 working days. Once you have confirmation that your loan has been approved, you must notify the seller immediately to ensure that your offer becomes unconditional and to enable the process to continue. This condition is very important, because if you are not able to secure finance, the "Offer to Purchase" will terminate and become null in void, and neither you nor the buyer will be liable to pay any costs or penalties.

The Offer to Purchase should also include details of any unusual fixtures or fittings which are included in the purchase price, or which the seller might want to take with him when he leaves. Generally all items which are "fixed" remain in the house, but furniture, loose carpets and appliances go with the seller. This is where conflicts often arise, so it's best to ensure any important items are noted in the contract.

Take the time to find out everything you need to know about a property before signing anything. Visit the house for a second look, you may have missed something the first time. Always express your concerns to the seller and ask them to assist you in clarifying any problem areas that you may have or consult an Attorney. Once the seller has accepted and signed the offer, it becomes a contract binding on both parties.