What is an Offer to Purchase?
An Offer to Purchase is a contract that is signed by a purchaser with an offer to purchase a property, and includes the purchase price and other relevant terms. It is then given to the seller to accept or reject the offer. Once the seller has signed the agreement, a valid sale of the property exists.
According to South African law, an agreement for the sale of immovable property must be recorded in writing and signed by the parties.
1. An offer to purchase is signed
2. Certain information must be provided to the conveyance who will then prepare the transfer documents
3. A deeds office search, is conducted
4. Payment by the purchaser of the transfer duty, Attorney’s fees, Deeds Office fees, etc.
5. Transfer duty is paid and a receipt is issued by SARS
6. Once the bond has been granted, guarantees will be issued by the bank
7. The seller’s bond cancellation figures are called for
8. The rates application is submitted to the local council for a rates clearance certificate
Body Corporate / Home Owners’ Association clearance is obtained, if applicable