What happens after the offer has been accepted by the seller?
The deposit if applicable, will become payable in terms of the agreement. Pay the deposit over to the transferring attorney, within the stipulated time, which deposit is to be held on an interest bearing account, in trust on behalf of the buyer.
Should the buyer require additional financing, the next step would be to apply to a financial institution for the necessary financing. The institution will require a copy of the signed offer to purchase to enable them to value the property and additional documents of the buyer ie. Proof of income, marital status, identity documents etc.
The buyer has to ensure that his bond is approved within the period specified in the agreement and therefore has to furnish the bank with their requirements for the approval when requested to do so.
Also make sure that the bank is aware of the attorney attending to the transfer, so as to enable the bank to either instruct the same attorney for the bond or alternatively instruct one of their panel attorneys to do the bond and to liaise with the transferring attorney as a bank guarantee has to be issued in terms of the agreement within the specified time as set out in the agreement.
Should the approval of the loan not be obtained timeously or the guarantees not issued in time, the buyer will be in breach of contract and the seller will be entitled to place the buyer on terms and give the notices for rectification of breach in terms of the agreement – normally a period of 7 days is allowed.
The seller has the option of the breach is not rectified within the aforesaid period, to either cancel the sale or to enforce the terms of the agreement through a court of law.