You have found your dream property, and you would like to make an offer – exciting times! An offer to purchase, sometimes called a sale agreement, is a legal document that you sign when you want to buy the property.
Make sure your offer to purchase (OTP) is watertight by checking that it contains the essentials.
1. Personal details
The names and ID numbers of the buyer and seller must match those on their identity documents.
2. Property description
The OTP must refer to the property exactly as it is written on the Title Deed.
3. Purchase price
An OTP is legally binding, so don’t offer a purchase price that you cannot afford. Once the parties have signed, it becomes a legally binding contract so there could be financial penalties if you decide to pull out.
4. Occupation date
The occupation date can either be on transfer of the property into your name, or earlier, in which case occupational rent will be charged.
5. Defects
Your OTP should include a full list of defects. There are two types of defects – patent defects (clearly visible, e.g. cracked walls) and latent defects (harder to spot, e.g. leaking roof).
6. Fixtures and fittings
Make sure that you know which items in and around the house are included in the purchase price of the property.
