What are the important things to know when it comes to an offer to purchase?

What are the important things to know when it comes to an offer to purchase?

 

Do not sign an offer to purchase before you have read through the whole document, asked explanations or handed to your attorney to explain to you. Once you make an offer and the seller accepted it, you are legally bound by it.

Once the offer has been accepted by the seller, it becomes an agreement of sale and can only be amended or changed by agreement between the parties, which amendment should also be in writing.

When making an offer it is important to know:

    You do not have to match the asking price – you are entitled to make a different offer to the asking price, you are also entitled to know what offers the seller has received;
    Deposit – if a deposit is required, and paid by yourself, it is a sign of good faith on your part. There is no rule as to how much the deposit should be, but generally it is 10% of the purchase price;
    If you have a property to sell, the proceeds of which is to be used to pay part of the purchase price on the property – make sure that your offer provides for a "subject to the successful sale" of your current property;
     Any special request regarding movables and fixtures as well as amendments or repairs to the property should also be listed in writing in the offer – if not in writing it is more difficult to enforce!!