'Don't accept an expired offer'

When a would-be homebuyer makes an offer on a home it is customary, says Lanice Steward, MD of Anne Porter Knight Frank, to include a clause stating that the offer is valid up to a specified date.

It the seller then accepts the offer after that date, in South African property law this is deemed to be 'irregular'. The clause is to the benefit of the purchaser, therefore the purchaser and the seller have to an addendum to the offer to purchase agreement stating that this is acceptable to both of them.

Addendum clauses, Steward adds, can lead to problems. The wisest course to take, if the seller is still keen, is for the buyer to extend the validity period on his offer so as to allow the seller to act within the stipulated and accepted time frame.

"This may sound very much like a legal technicality of no great importance," says Steward, "but many a sale has come unstuck because the seller accepted late and then either he or the buyer used this as an excuse to opt out of the contract."

Anne Porter Knight Frank Press Release

Posted at 07:31AM Sep 22, 2010 by Editor in Market  |  Comments[1]