What is an Offer to Purchase (OTP)?

The Offer to Purchase is the most important document in any property transaction. Once signed by both buyer and seller, it becomes a legally binding contract. There is no cooling-off period for standard residential property in South Africa.

Essential clauses every OTP must include

• Purchase price and deposit — amount, due date and trust account details
• Suspensive conditions — bond approval, sale of existing property
• Occupation date and occupational rent — when you move in and at what cost
• Fixtures and fittings — list everything included (geyser, stove, cupboards, JoJo tanks, borehole pumps)
• Voetstoots clause — and seller disclosure of known defects
• Compliance certificates — who obtains and pays for each
• Conveyancer appointment — typically the seller appoints the transfer attorney
• Transfer timeline — target registration date

Clauses buyers often miss

The 72-hour clause allows the seller to continue marketing and accept better offers — understand this before signing. Sale of existing property clauses must have realistic deadlines. Electrical compliance, beetle, plumbing, gas and electric fence certificates should be specified.

Always have it reviewed

A conveyancer can review your OTP before signature for a fraction of the cost of a dispute afterwards. Midlands Property Hub offers OTP review support — see our Buyer's section or contact us.

Related: Understanding an Offer to Purchase · What Is an Offer to Purchase?