Buying a property is exciting, but before you get caught up in the plans for your new braai area, take a moment to carefully review your Offer to Purchase (OTP). This is a binding legal contract, and it’s important to understand exactly what you’re signing. Here’s a simple guide to help you cover the key points:

1. Purchase Price

Double-check that the purchase price is correct and matches what you’ve agreed to. Confirm if any extras (like furniture or appliances) are included.

2. Deposit

The OTP should clearly state the deposit amount, usually around 10% of the purchase price. Make sure you’re comfortable with the upfront payment terms and the deadline for payment.

3. Suspensive Conditions

These are conditions that must be met for the sale to proceed — commonly, securing bond approval or selling your current home. If these aren’t met by the specified date, the OTP may lapse automatically.

4. Occupational Rent

If you plan to move in before registration, confirm the occupational rent amount. This is the monthly rental you’ll pay to occupy the property before transfer is finalised.

5. Transfer and Legal Costs

Budget for transfer duties and legal fees, which can add up quickly. Always request a full cost breakdown upfront so you’re not caught off guard.

6. Compliance Certificates

Make sure the seller provides all required compliance certificates (electrical, gas, beetle, etc.). These confirm the property meets legal safety standards.

7. Fixtures and Fittings

Clarify exactly what stays with the property — for example, light fittings, blinds, or appliances. Avoid any assumptions to prevent disputes later.

8. Cooling-Off Period

In some cases (mainly for certain residential sales under R250,000), a cooling-off period may apply. Know whether you have this option to withdraw shortly after signing.

9. Agent’s Commission

Confirm that commission arrangements are clearly set out. Typically, the seller covers this cost, but it’s always good to know who’s paying.

In Summary

An Offer to Purchase is a big step. Take time to review, ask questions, and get legal advice if needed. A bit of care upfront will help ensure a smooth transaction and happy move-in down the line.