MANAGEMENT
Making an offer to purchase is serious business
When you find a home you want to buy, the next step is usually to make a written Offer to Purchase( OTP) which the agent will then present to the seller to accept, reject or make a counter-offer.
“ And it is very important to understand that when an offer is accepted and signed by the seller, it immediately becomes a legal contract that is binding on both parties,” says Berry Everitt CEO of the Chas Everitt International property group.
“ This means that you cannot use an OTP as a means of‘ booking’ a property you like while you carry on looking at others in the hope of finding one you like more, and that you cannot simply‘ change your mind’ about buying the property without the very real possibility of incurring a hefty financial penalty or having to pay a significant amount of money to get out of the contract.” says Everitt.
Of course personal, work and financial circumstances can sometimes change very unexpectedly. Everitt notes that“ Buyers who are quick to communicate such changes as the genuine reasons for them being unable to proceed with a purchase are quite likely to encounter understanding and even sympathy from the sellers, especially if there is time for the sellers to re-open negotiations with others who might have expressed interest in the property.”
30 FEB 2022 SA Real Estate Investor Magazine