Lake Properties Lake Properties
Lake Properties Lake Properties
Here’s a more detailed breakdown of how the offer and counteroffer process works in South Africa when buying property, including how long a seller has to respond:
๐ Step-by-Step Process: Offer to Purchase (OTP) and Counteroffers in South Africa
1. Offer to Purchase (OTP) Is Made
Once a buyer finds a property they want, they make a written Offer to Purchase. This is a formal legal document that outlines:
- The offered purchase price
- Any conditions (e.g. subject to bond approval, selling another home)
- A validity period (e.g. “This offer is valid until [date and time]”)
Key Point: This is not just an expression of interest — it becomes a legally binding contract once accepted by the seller within the stated time.
2. Validity Period (Time Limit for Acceptance)
Most OTPs include a validity clause (e.g., 24, 48, or 72 hours). During this time, the seller must decide whether to:
- Accept
- Reject
- Make a counteroffer
If the seller does not respond within this timeframe, the offer automatically expires, and the buyer is no longer bound to it.
Example:
You submit an OTP on Monday at 2 PM with a 48-hour validity. The seller has until Wednesday at 2 PM to accept, reject, or counter. If they don’t respond, the offer lapses.
3. If the Seller Counters Your Offer
If the seller is not satisfied with your offer (price too low, wrong conditions, etc.), they can propose a counteroffer. This could involve:
- Asking for a higher price
- Changing conditions (e.g., removing a contingency)
- Modifying deposit amounts or occupation dates
Important:
- A counteroffer legally cancels your original offer.
- The ball is now in your court: you can accept the counteroffer, reject it, or propose a new counteroffer.
There’s no obligation for you to accept a counteroffer.
4. Time Limits on Counteroffers
A counteroffer is usually made within the original offer’s validity period. But technically, as soon as the seller changes any part of your offer, your original offer is void, and they are now the ones making a new offer (i.e., the counteroffer). You can then set a new validity period or respond immediately.
So the timeline resets with each counter.
5. Legal Standing
Until the offer is accepted in writing by both parties, there is no binding agreement. Real estate agents or attorneys should ensure all parties understand the timelines and sign the documents properly.
๐ Summary
| Action | Timeline | Legal Effect |
|---|---|---|
| Buyer makes OTP | Valid for 24–72 hours (or as specified) | Offer is binding if accepted by seller within that time |
| Seller counters offer | Must be done before the offer expires | Original OTP is nullified; seller makes a new offer |
| Buyer responds to counter | No set time, but prompt action is expected | Can accept, reject, or counter again |
✅ Tips
- Always read the OTP for specific deadlines.
- Keep communication with the estate agent clear and timely.
- Consider legal advice for high-value or complex transactions.
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