Question 1

When does an Offer to Purchase become legally binding?

Accepted Answer

When both buyer and seller have signed the OTP. Until then it is an offer only. Once signed, it is a contract enforceable in law unless a suspensive condition fails.

Question 2

Can I cancel an Offer to Purchase after signing?

Accepted Answer

Only if a suspensive condition fails, both parties agree to cancel, or there is a valid legal ground such as misrepresentation. Unilateral cancellation of an unconditional OTP may result in breach claims.

Question 3

Does my spouse need to sign when I sell property?

Accepted Answer

If you are married in community of property, both spouses must consent and sign. With an antenuptial contract, ownership depends on how the property is registered. Divorced owners may need court orders.

Question 4

Can property be sold if an owner has passed away?

Accepted Answer

Yes, through the deceased estate. The executor must have authority to sell, and transfer proceeds through the estate administration process. This adds time and documentation requirements.

Question 5

What is a servitude and how does it affect my property?

Accepted Answer

A servitude is a registered right allowing someone else limited use of your property — such as a right of way, utility servitude or access road. Check the title deed for registered servitudes before buying.

Question 6

What is a life right in retirement property?

Accepted Answer

A life right gives you the right to occupy a unit for life without owning the property. Resale, inheritance and levy obligations differ from sectional title or freehold. Review the contract carefully before committing.

Question 7

Is a verbal agreement to sell property legally binding?

Accepted Answer

No. Property sales must be in writing and signed to be enforceable under the Alienation of Land Act. Verbal agreements, WhatsApp promises and handshake deals are not valid property contracts in South Africa.

Question 8

Can I subdivide my property and sell a portion?

Accepted Answer

Subdivision requires municipal approval, surveyor-general diagrams and often rezoning. It is a lengthy process — do not sell a portion until subdivision is registered. Common on Midlands smallholdings but frequently done incorrectly.

Question 9

Can property registered in a trust be sold?

Accepted Answer

Yes, but the trustees must have authority to sell per the trust deed. All trustees typically must sign. FICA requirements apply to trusts. Verify trustee resolution and authority before accepting an offer from a trust seller.

Legal & Contracts Questions