THE REASONS THESE INSTANCES WHERE PEOPLE CANCEL AN OFFER TO PURCHASE
There are many reasons why the OTP may be terminated : available . At this stage we were starting to consider other buyers because our client , the seller , was getting jittery and also did not understand this story .
Then the buyer offered to pay occupational rent for 3 months upfront , and the seller , at the time being a bit desperate for income , agreed to the arrangement , moved out , and the ‘ purchaser ’ moved in . A short lease was signed as the money would be out soon .
As you know , when you are busy , 3 months is very short , and it was over , and a new story came , the purchasers claimed there were ghosts in the property that threatened to kill them if they continued staying there , so they wanted to cleanse the house . We all get duped sometimes right ? So there was no option at the time but to allow them to ‘ cleanse ’ the house , after all , they would be living there , plus , they would have paid cash , the full amount the seller wanted , and we did not smell the rat and as such there was no way this transaction was going to proceed , and after several unsuccessful trips to the property , the occupants disappeared , without a trace . We were fortunate that they did not damage the property badly , but they were professional scammers .
1 . Seller removes some of the fixtures in the house which the buyer saw when they came to view and nothing was said about the removal . These could even be furniture , which may have seemed like it ’ s fixed to the wall . 2 . If the seller does not agree to the offer presented 3 . Perhaps one of the parties passes on before the transaction is completed 4 . Buyer in a sectional title complex may not have read the conduct rules upfront , or just realized the amount of levies which they are not willing to pay . This would usually be the agent ’ s fault . 5 . Many times , there ’ s a buyer ’ s remorse , and these days buyers are given a few days to accept a bank ’ s offer , which other buyers use to sneak away . 6 . When verbal agreements were never written down , and there ’ s a dispute about the property and no one wants to take accountability 7 . The interest charged by the financial institution , based on the client ’ s credit rating and other unknown reasons , can also make the buyer to cancel 8 . Deceased estates tend to take much longer to complete , and therefore some buyers could try to cancel especially if the OTP is not tight enough 9 . Some buyers can cancel after thorough inspection of the house and feel it was a misrepresentation 10 . There was a buyer who cancelled because of the agent
56 APRIL 2022 SA Real Estate Investor Magazine