An offer to purchase template is a vital tool towards achieving the dream of homeownership that we are certain a lot of you have. Since there is a lot of information that you may need on the subject, this article is going to give you answers, pointers as well as the templates themselves in an easy-to-understand format. Continue reading to learn everything you need to know.
When searching for your dream home, you will inevitably have to put forward a bid through an offer to purchase template. For the purposes of convenience and saving time, we have gathered a couple of templates. But first, let us get you started on the basics of the document so you know exactly which one works for you.
What is an offer to purchase in South Africa?
It is a document that the potential buyer of property presents to a seller to express interest in purchasing a property. After studying its terms and conditions, the seller then has to decide whether to accept or decline the proposition. Acceptance is by placing their signature on the document as required.
Can you change your mind after making an offer on a house?
The short answer is no. Once the seller has accepted the proposition and signed the document, it becomes legally binding and you cannot pull out of it at will. This means that failure to adhere to the terms set in it constitutes a breach of contract and the seller is allowed to pursue legal action against you.
For this reason, it is recommended that before presenting your bid on a house or other property, check everything you can beforehand to ensure it is up to your personal standard of liking. This includes location, utilities, fittings, aesthetics, and price. Be completely sure that you are going to be able to finance the purchase once the bid has been accepted as well as a fallback option should your original backing fall through.
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Moreover, it is ill-advised to make more than one concurrent bids if you are not planning to purchase them all should they be accepted. If, for instance, you place bids on three properties hoping to get the best one and all three are accepted, you are now in three separate but equally binding legal contracts for all properties.
Ensure there are clear guidelines and clauses on how to deal with a breach of contract on the offer to purchase document.
How long is an offer to purchase valid?
As a rule, there are four instances where an offer to purchase becomes invalid. They are the following:
When the buyer revokes the offer
The buyer is free to, at any time and at their own will, revoke the offer after presenting to it but before it has been signed and accepted. Remember, it only becomes legally binding upon the seller’s acceptance.
When the seller rejects the offer
If the seller reads the terms and conditions of the offer and decides they are not to their liking, they can reject the offer. This means that it never becomes legally binding.
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When the time specified on the offer lapses
The offer to purchase document usually includes a section where the potential buyer can specify the amount of time the seller has to accept the offer before they automatically revoke it. If and when the time stipulated has lapsed, the offer becomes null and void. If the seller were to sign it afterwards, it would not be legally binding.
When either party dies
If either the potential buyer or seller passes away before the offer is signed, it automatically becomes null and void. However, if death occurs after the document has been signed and become legally binding, the responsibility of the deceased are passed down to their estate.
How do I complete an offer to purchase?
When filling in the details on an offer to purchase form you should check to make sure the following information is present and correct:
- The buyer’s details
- 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 and buyer moves to occupy the property
- The occupational rent – this refers to the rent that the buyer pays before fully paying off the price of the property while occupying it
- The price of the property
- The property’s information as it is described on its title deed
- The seller’s details
- The special conditions if any exist
When filling or completing the offer to purchase, follow these guidelines:
- Mistakes do not void make the contract – they can be corrected through unambiguous and clearly worded amendments, but it is advised that both parties formally acknowledge the changes by initialling next to them on the document.
- All blank spaces must either be filled in or deleted from the document.
- Clauses that are irrelevant 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.
- If the Special Conditions section provided to include additional clauses is insufficient, the parties could continue on a separate distinctly marked/titled document known as an annexure. The original section must mention the other document concisely.
Offer to purchase template South Africa
As promised, here are some offer to purchase form free download options:
- Template 1
- Template 2 – contains an offer to purchase template South Africa Word (.doc) and PDF format options before downloading
- Template 3
- Template 4
- Template 5
There is also a separate download for the annexures.
Go through each letter of offer to purchase property template to find the sample best tailored to your individual needs as you have determined from reading the full article. Be sure to read them all the way through to familiarize yourself with all the provisions, clauses, and more in order to avoid further complications.
That concludes our article on the offer to purchase template. You can find more offer to purchase samples and forms online through the links provided. If you found it informative, be sure to leave a comment below and share it widely.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.
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Source: Briefly News