Offer to Purchase

Sep 1, 2023
Budget Tax Highlights

The safest way to buy your home is for your estate agent or attorney to draft an Otter to Purchase and explain the clauses to you. Once the Offer to Purchase is signed by all the parties concerned, it is a binding contract. Remember that a verbal sale of immovable property is invalid.

If a mistake is made in a contract or example the date is incorrect, it does not render the contract invalid. Such an error can be rectified. Always initial next to any rectification. in order to avoid future disputes.

What is included in the sale/purchase of immovable residential property?

When you buy a house, you in fact buy the land on which the house is situated. The house, being a permanent improvement, forms part of the land. All surface and subsurface soil water, trees and plants on the land are by law included in the purchase. Also included are all permanent improvements like any buildings, a borehole or swimming pool and all movable items, which have been permanently fixed to a house or other buildings (called permanent fixtures).

All movable accessories which are of a permanent service to the immovable property and which are necessary for its effective use or exploitation are also included in the purchase of the property unless otherwise agreed (for example the pool cleaning equipment).

To avoid any disputes, always specify and describe in writing on the Deed of Sale or Offer to Purchase, which items are included and which items are excluded under the heading Special Conditions.

What about the Voetstoots Clause?

This clause relates to detects and in certain instances, the buyer is protected against severe detects discovered after transfer of a property.

A patent defect is clearly visible upon inspection, Uke a crack in a window and it should be stated in the deed of sale. who will be responsible for fixing the defect.

A buyer has no recourse against the seller for patent defects, which are visible or obvious without expert inspection – it will be up to the buyer to look for them and to decide whether or not to proceed with the purchase. A latent defect is not easily picked vo on inspection. for example a faulty geyser or damp area. Sellers usually stipulate that the property is sold “as is” or voetstoots but the seller will still be responsible for any deliberately concealed latent

The buyer can insist on certain guarantees under the heading Special Conditions, for example, The seller hereby warrants that the swimming pool is not leaking on date of signature hereof.

To protect yourself as the buyer you may ask the seller to supply warranties and documentation relating to any repairs and maintenance effected to the property.