Offer to Purchase (OTP) for Residential Property
The First Step in a Residential Property Sale
An Offer to Purchase (OTP) is the legally binding contract that sets out all terms of a residential sale in South Africa.
Key Clauses in Your Residential OTP
-
Voetstoots (“As Is”) Clause
All defects—visible or hidden—are sold voetstoots, and the seller makes no further warranty on the property’s condition -
Purchase Price & Deposit
-
Purchase Price: R__________ (in words)
-
Cash Deposit: Paid into a Section 78(2)(a) trust account, with interest accruing to the purchaser
-
-
Suspensive Conditions
Commonly includes bond approval within a set period. If not fulfilled, the sale lapses and the deposit (plus interest) is refunded -
Fixtures & Fittings Inventory
Lists permanent fixtures (light fittings, built‑in cupboards, pool equipment, etc.) to avoid disputes at transfer -
Occupation & Occupational Rent
Specifies the date the purchaser takes possession and any occupational rent payable if occupation occurs before registration -
Rates, Taxes & Transfer Costs
-
Seller pays rates and taxes up to registration; purchaser thereafter.
-
Purchaser is liable for transfer duty or VAT, conveyancer’s fees, bond costs, and disbursements.
-
-
Cooling‑Off Period
For transactions under R250 000, the purchaser may revoke the OTP within five working days per Section 29A of the Alienation of Land Act -
Electrical & Fence Compliance Certificates
Seller provides valid compliance certificates for electrical installations and fences prior to transfer -
Domicilium Citandi et Executandi
Each party’s chosen address for serving legal notices is recorded to establish jurisdiction and notice requirements -
Jurisdiction & Dispute Resolution
Agreement to Magistrate’s Court jurisdiction, with alternative dispute adjudication options available
Selling Privately vs. Using an Estate Agent
While estate agents traditionally handle marketing, valuations, and negotiations, you are not required to appoint one:
-
Cost Savings: Avoid 5–7% + VAT commission fees
-
Full Control: You set the asking price, schedule viewings, and negotiate terms directly
-
Easy Documentation: An OTP is quite straight-forward and do not need an agent to complete
Whether you choose to sell privately or through an agent we have all the tools required to make an informed decision from Instant Property Searches, Valuation Reports to Title Deed Copies and Copies of Marriage Contracts (ANC).