Offer to purchase South Africa: what you're signing when you buy a house
6 min read · General information, not legal advice
Quick answer
An offer to purchase (OTP) becomes a binding deed of sale as soon as the seller signs it. Under the Alienation of Land Act 68 of 1981 a sale of land must be in writing and signed by both parties. Read every condition before signing, because there's usually no going back.
Conditions to check
Bond approval: the sale should be subject to your bond being approved by a set date.
Sale of your current home, if you need that money.
Occupation date and occupational rent.
Voetstoots: it protects the seller against unknown defects, not ones they knew about and hid.
Compliance certificates such as electrical, gas, beetle and electric fence, depending on the municipality.
Cooling-off
The Alienation of Land Act gives a buyer 5 days to withdraw from a sale for land up to R250 000, by written notice. Above that amount there is no statutory cooling-off for an OTP.
Why we don't sell an OTP
Property sales can't be signed electronically under the ECT Act, and most are handled by estate agents and conveyancers. Ask the conveyancing attorney to explain the OTP before you sign.
Frequently asked questions
Is an offer to purchase legally binding?
Yes, once both buyer and seller have signed it, subject to its conditions.
Can I sign an offer to purchase electronically?
No. The ECT Act excludes sales of immovable property, so they need ink signatures.
Who chooses the transferring attorney?
Usually the seller, but check the OTP.
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