FAQ's ON THE OFFER TO PURCHASE
the sale become finalised?
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.
withdraw my offer after signing it?
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.
Your best option if wanting to withdraw, is to immediately notify your
agent (Another good reason to use a buying agent) and allow them to
approach the seller informing them of the situation. In most cases you
will find the seller willing to co-operate and if the agent is
professional, they too will accomodate you.
does the seller have to respond?
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.
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 and sign accordingly.
estate agent withhold the offer?
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 other offer first.
the seller receives two offers simultaneously?
If your agent or even 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.
If he wishes to accept both, one of these however will have to have a
clause inserted saying "subject to successful cancellation of all
previous offers" there will have to be a caluse specifying how notice
will be given to the first offer if the second is first to obtain a
bond. Property Network contracts already have these provisions built in.
sell to me if I offer his asking price?
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.
verbal acceptance by the seller enforceable?
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
seller accept the offer after the expiry date?
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.
seller reject the offer and then change his mind?
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.
Do make sure that you get the rejection in writing - you do not want to
be caught making an offer on another property only to find out that the
original seller has now accepted your offer and is holding you to it
and denies the original rejection.
Back the Legal Advice Centre for
all your legal answers
Read more on Why to Use Property Network
Read more on Open Mandates or MLS Mandates
CDPE Qualification - What
does it mean
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