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