Whatshot
Buyers beware, an offer to purchase is legally binding
Buyers beware, an offer to purchase is legally binding
Date: 2018-10-05
While it is currently a buyer's market and there are many properties available which buyers can choose, this does not mean a buyer can simply change their mind after signing an offer to purchase for an existing property. Many buyers don't seem to realize that an offer to purchase is a legally-binding document.
The offer to purchase is a purchase agreement which contains all the terms and conditions attached to the purchase of the property. In a home sale process, once a buyer has found a home they like and can afford, they submit an offer to purchase to the seller, outlining the price they are willing to pay for the property.
If the seller is happy with the price and other conditions and signs the offer submitted to them by the buyer, a legally-binding sale agreement is in full force and effect, subject to fulfilment of the terms and conditions stated in the offer.
When an offer to purchase is signed for a current property over the value of R250000, there is no cooling off period for the buyer. This means that buyers cannot simply change their mind and cancel the offer to purchase, and if they do, there may be serious financial implications. This is why buyers must be absolutely sure about a property before they place pen to paper and put an offer to purchase in writing.
Additionally, buyers should make sure they understand all the terms and conditions of the offer to purchase, explained to them by theestate agentduring the process of signing the offer. A buyer simply cannot just sign the offer to purchase and thereafter say they did not know what they were signing.
Should a buyer simply change their mind about wanting to buy a property, they may lose their deposit if they have put one down, as well as be liable for the estate agent's commission.
If there is any doubt or uncertainty, buyers should rather ask a legal professional to go over the contract with them before they sign it to explain any terms they may not understand and double check that all parties interests have been accommodated.

