There are a few parties to consider and the offer to purchase or (OTP) is an important step to get, right? It’s exciting for everyone concerned when a buyer wants to put in an offer on a property. And this results in an offer to purchase being drawn up. The OTP must then be signed by the agent the buyer and the seller.
What is an offer to purchase?
Once signed, the offer to purchase becomes a legally binding document or contract. This also, means that both parties (the seller and the buyer) are bound by the terms that are outlined in the OTP. Finally, an OTP is a quintessential document that governs the sale agreement between a seller and a buyer. It is therefore important that it the OTP be completed accurately.
Obligations of the seller?
- Disclosure – Firstly as a seller, you need to disclose all patent and latent defects to the property. This info should be included in the OTP.
- Attention to detail – Check the date of occupation, occupational rent, fixtures and fittings, and the conditions of the sale.
- Outstanding accounts – Sellers are responsible for all outstanding levies, rates, and taxes owed to the municipality or body corporate. Outstanding balances if any must be paid in full and the relevant clearance certificates acquired.
- Annual tax returns – Also, your annual tax returns as a seller must also be up to date.
- Certificates – And finally, sellers must obtain all the relevant certificates relating to electricity, gas, electric fence, etc. And these certificates are obtained at the expense of the seller.
What are the obligations of your estate agent?
- Explain: Agents should explain any clauses that are not understood by either of the parties.
- Negotiation: The seller gives the estate agent authority to negotiate on their behalf regarding the sales price.
- Sale conditions: All buyer requirements are outlined in the OTP.
Responsibility and accountability of the buyer
All the relevant parties that sign this document (OTP) carry responsibility. The buyer in this instance is responsible for the following:
- Accuracy: Read the OTP carefully. Check for accuracy. Ask for clarification if you don’t understand anything.
- Check the details: Check the document for accuracy. This includes the date of occupation and occupational rent. Also, check the conditions of the sale carefully.
- Duty and obligation to inspect the property: The buyer has an obligation to visit the property and to inspect the property thoroughly before signing the OTP.
- Finance: Buyers must state this info in the OTP. Buyers are responsible for calculating the fees due. This includes (deposit, transfer and bond fees, bond repayment amounts, etc).
- Suspensive conditions: Check all suspensive conditions relating to bond approval and timelines.
- Registration: Buyers are responsible for all the acts that result in a registration. This includes the payment of all bond and transfer costs and providing the necessary FICA documentation.
- Inspection: Finally buyers have the right and must check the state of the property prior to signing an OTP.
Responsibility of the transferring attorney
The transferring attorney has the following responsibilities:
- Documentation: Obtaining all the necessary FICA documentation from all parties (buyer and seller).
- Communication: Communicate with the appointed bond (purchaser) and bond cancellation (seller) attorneys. The transferring attorney ensures that the correct guarantees are provided.
- Liaise with relevant authorities: The transferring attorney will contact the relevant authorities. This includes SARS, the municipality, or the body corporate. They will obtain any outstanding figures to calculate payment. And, finally to obtain the relevant clearance certificates.
- Financial control: First of all, they control the finances throughout the transaction. In addition, they make the necessary payments upon registration. Finally, they will also provide all parties with their respective final accounts.
Proceeding with an offer to purchase?
- Agents prepare and present the offer to purchase and include all elements that include the sales price, latent, and also patent defects.
- Carefully consider every offer. Especially in light of the current market conditions.
- This is important because we find ourselves in a buyer’s market. Remember if your asking price is inflated, bear this in mind before you refuse the offer to purchase. Also, make sure the price you want is realistic and market-related.
Let us help you get an offer to purchase quickly?
We are here to help you connect with top agents in your area. We believe there can be no better way to sell a property than to partner for success. Sellers always want the most out and they want to sell quickly. We are here to help. Need a property valuation, let us know. Need to connect with a top agent, we can help. It all starts with a free property valuation and ideally one that includes a comparative market analysis (CMA). Finally, you want to make sure that the asking price you list for is correct – it’s your most important decision.
Estate Agents – want to know more about KW?
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Get in touch
So, if you need a valuation done on a property anywhere in Randburg or elsewhere in Jhb, we can help. Give us a call on telephone number (064) 549-3123. Alternatively, drop us an e-mail at email@example.com. We have a vast network of almost 1,500 top Keller Williams agents at our fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.
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