The Offer to Purchase, Decoded

In South Africa, the Offer to Purchase (OTP) — also called the deed of sale — is the contract that binds you and the seller. There's a common myth about a "cooling-off period"; it only applies to properties under R250,000, so for almost every real purchase, a signed and accepted OTP is final. That's exactly why understanding it before you sign matters so much.

Suspensive conditions

These are conditions that must be met for the sale to go ahead — the sale is "suspended" until they are. If a suspensive condition isn't fulfilled by its deadline, the contract falls away and you typically get your deposit back. Common examples include obtaining bond approval, or the sale of your current home first.

• Make sure the deadlines are realistic — too tight and you risk the deal collapsing through no fault of your own.
• Each condition should state clearly what happens, and to your deposit, if it isn't met.

The bond-approval clause

This is the most important suspensive condition for most buyers. It says the sale depends on you getting a home loan approved, usually for a stated amount and within a set number of days. Watch for two things:

• The amount: it should reflect the bond you actually need. If it's set too low, you could be bound even if the bank approves less than you require.
• The timeframe: bond approval takes time. Too short a window puts you under pressure or risks breaching the contract.

Voetstoots ("sold as-is")

Most homes are sold voetstoots, meaning you buy the property in its current condition, defects and all. The seller must disclose defects they know about, but the voetstoots clause can leave you carrying the cost of problems discovered later. This is precisely why an independent home inspection before you sign is so valuable.

Occupation date and occupational rent

The occupation date is when you may move in — which isn't always the same day the property is transferred into your name. If you move in before transfer, you'll usually pay occupational rent to the seller; if the seller stays on after transfer, they pay it to you. The OTP should state the date and the monthly amount clearly to avoid disputes.

Fixtures and fittings

Disagreements over what stays and what goes are surprisingly common — light fittings, blinds, the stove, pool equipment, even plants. Anything permanently attached is generally a fixture that stays, but the only safe approach is to list inclusions and exclusions explicitly in the OTP so there's no argument on moving day.

Other clauses worth checking

• The deposit amount, when it's due, and that it's held in a trust account.
• Who pays for which costs, and any penalties for late payment or breach.
• Whether the offer is subject to the sale of your existing property.

Why a reviewed OTP is worth it

The OTP is where a good deal is protected or a costly mistake is locked in. A reviewed offer makes sure the amounts, deadlines and conditions actually protect you — not just the seller or the agent earning commission on the sale. This is the part of the journey where having someone on the buyer's side pays for itself, and it's exactly the hands-on support Scetra offers.