Everitt also says latent defects can sometimes be discovered before a property transfer can be registered – and lead to the buyer wanting to cancel the deal .
“ But in such cases the best course of action is actually for the purchase price to be re-negotiated , or for the buyer and seller to reach an agreement about payment for the necessary repairs and still go ahead with the transaction , unless they want to end up in a long and costly court action .” says Everitt .
Meanwhile buyers who are just having a “ change of mind ” about going ahead with a purchase that has already been agreed to should note that many OTPs still contain a clause stating that if they really do want to be released from the contract , they will have to pay the sellers rouwkoop – or an amount usually equal to a substantial portion of the purchase price .
Everitt says “ Alternatively , the OTP may provide that if they breach the contract ( by not performing as agreed ), the seller is entitled to cancel and claim damages , or a forfeit of any deposit already paid . And either way it should be clear that making an offer to purchase is not the same as ‘ taking an option ’ which buyers can later abandon , and that buyers should only make an offer when they really intend to buy a specific property .” in writing – includes all the terms and conditions that apply to their transaction , and that these are completely disclosed and agreed to by both parties before the document is signed .
“ For example , buyers may need to sell an existing home before they can proceed with the purchase , or they may need to make the OTP conditional upon obtaining a home loan to finance their purchase , and in such instances the offer must contain clauses stating that the sale is ‘ subject to ’ the home loan being approved or the buyer ’ s current property being sold .” says Everitt .
It is also highly advisable to be specific in the OTP about the date of occupation , which is the day on which the property will be vacated by the seller so that the buyers can move in , or at least obtain the keys to the property should they wish to make arrangements to clean it or paint it before moving in .
Everitt concludes that “ In fact , the more specific an OTP is , the better . If all aspects of the sale have been covered and written into the document , there will be very little room for either the buyer or seller to disagree or try to renegotiate anything at a later stage .”
SOURCES Chas Everitt International
In addition both buyers and sellers need to ensure that the OTP – which must be
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