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Let’s dig deeper into how long you, as the seller, should give a buyer for due diligence, and why this period matters so much in a South African property sale.
1. What “due diligence” means in property sales
A due diligence period is the agreed time in which the buyer can investigate the property to confirm it’s suitable for their intended use and that there are no hidden legal, financial, or structural problems.
Depending on the type of property, this might include:
- Legal checks – Title deed, servitudes, zoning rights, building plans, and compliance certificates.
- Financial checks – Rates & taxes clearance, levies, utility accounts, outstanding debts.
- Physical checks – Home inspection reports, pest control reports, land surveys.
- Operational checks (commercial or investment property) – Lease agreements, tenant payment history, maintenance costs.
If the buyer finds something unacceptable during this period, they can usually walk away without penalties — if the contract allows for it.
2. How long sellers typically give
There is no fixed law that dictates the number of days. It’s a contractual matter. However:
- Residential property: Usually 7–14 days.
- Sectional title / complex / estate property: Often 14–21 days to allow time for body corporate or HOA documentation.
- Commercial / agricultural property: Can be 30–60 days because investigations are more complex.
These are calendar days unless the OTP states “business days.”
3. Why you shouldn’t give too long a period
If you allow a very long due diligence period (e.g., 60 days for a normal house), the buyer may:
- Tie up your property while still “shopping around.”
- Withdraw at the last minute, leaving you back at square one.
- Delay your own purchase plans.
Tip: Keep the period just long enough for realistic checks, but short enough to prevent stalling.
4. How the due diligence clause should protect you
A good clause in the Offer to Purchase should specify:
- Exact time limit – e.g., “The purchaser shall have 14 (fourteen) calendar days from the date of acceptance of this offer to conduct due diligence.”
- Scope – State exactly what the buyer may check (so they don’t claim later they needed “extra” time for something unrelated).
- Outcome – Require written notice if the buyer wants to cancel based on the results. Silence after the deadline should mean the sale goes ahead automatically.
- Extension process – State that any extension must be in writing and agreed by both parties.
5. Practical seller’s strategy
- Short period first – e.g., 10–14 days.
- Room for extension – Be willing to add 3–7 days if there’s a legitimate reason (like municipal delays), but only in writing.
- Monitor progress – Ask your agent or conveyancer to check in with the buyer during the period so you’re not caught by surprise.
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