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Resolved Question

Is an offer to purchase binding on the buyer?

I'm a 1st time home buyer. I am interested in a prop. The seller said make an offer. the bank says come with an offer to purchase and we'll tell u what u qualify for. The buyer and the seller cant agree on a price. So how do i take a offer to purchase to the bank if the price is not agreed yet. and if it is agreed, is it binding on me once the bond is approved?

Lets assume the following example: The prop is in the market for R1m. I have no idea what bond value I qualify for since I am a 1st time buyer. I am interested in the prop, but only willing to offer R900k. I don’t want to offer R1m and apply for bond since I don’t want the seller to accept the offer for R1m. Seller wont accept offer for R900k. So my question is how do I solve the dilemma of taking a valid offer to purchase to the bank under terms that binds me to a price that a am willing to pay. The seller I hope will be willing to negotiate once they see that I am qualify for Rx amount and know that if I have an approved bond for that amount then it makes my case stronger. Any suggestions?
42 mths ago

Best Answer


42 mths ago

Answers -

If the offer is accepted by the seller, in writing, it is binding.

42 mths ago

If you put forward an offer to purchase its not binding until the seller accepts it. Then there is still the question of bond approval. The offer to purchase should state that you have 30 or 60 days to secure a bond failing which the contract/offer to purchase shall be nul and void. Read ALL the clauses carefully before you sign. If necessary take it to a reputable conveyancer to make sure that the contract will not be binding unless you secure a bond. Hope this helps!

Source: 4 Years experience in Conveyancing

42 mths ago

Hmmmmmm 2

42 mths ago

as per my previous response

42 mths ago

A contract usually has 'opskortende voorwaardes'. You make the offer to purchase eg valid for 45 days, subject to you getting and being able to afford a loan. Everybody does it that way.

42 mths ago

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