Essential Elements Within an Offer to Purchase

Making an Offer to Purchase is an important step in the buying or selling process.

This agreement becomes a legally binding contract once signed by both parties.

It is vital that the following factors are included in the contract:

• The precise purchase price with any considerations given by the purchaser to the seller.
• Any conditions of sale, eg: that the purchase price is dependent on the buyer obtaining a bond.
• That the deposit will be held in a trust pending the completion of the sale and that interest  accrued is due to the buyer.
• That all fixtures and fittings, anything glued or screwed down, are deemed to be part of the property as a whole. All items should be listed separately in the contract to avoid potential complications later on.
• That the owner declares that to the best of his knowledge, the house is structurally sound. Although sellers may try to protect themselves from any claims by a "voetstoots" clause, this will only protect them from claims where they were not aware of defects. If the seller was aware of defects and failed to disclose them, this protection becomes invalid.
• If the seller is in possession of approved plans, there should be an undertaking to provide a copy of these plans.
• In the case of a newly constructed home, a copy of the NHBRC certificate as well as occupation certificate may be necessary .
• Electrical compliance and certification is required, the agreement of sale should address any issues.

For specialist property advice contact Prime Property

031 566 5416