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A seller can only “sit” on an offer for as long as the offer remains valid. If the OTP states a deadline, the offer lapses at that deadline if the seller doesn’t accept — the buyer is then free. If no deadline is stated, the seller must respond within a reasonable time (usually measured in days, not weeks). In practice, sellers commonly give themselves 24–72 hours for clean offers and longer (7–21 days) when offers are conditional (e.g., subject to bond approval).
2) Important legal concepts (plain language)
- Offer / Offer to Purchase (OTP): the buyer’s written proposal that sets price, terms and an expiry/validity period if included.
- Acceptance: the seller must sign the OTP (or sign a counter-offer that the buyer accepts) to create a binding sale. Acceptance must be communicated to the buyer.
- Lapse: if the buyer sets a deadline and the seller doesn’t accept by that time, the offer lapses automatically and the buyer is free.
- Withdrawal (revocation): the buyer can withdraw the offer any time before acceptance.
- Counter-offer: if the seller changes any material terms (price, date, conditions), that is a counter-offer — it rejects the original offer and places a new offer on the table.
- Conditions (suspensive): offers often depend on things like bond approval, sale of another property, or inspections. Those conditions create timelines and obligations that affect how long negotiation can reasonably take.
3) Typical timelines and what’s reasonable
These are common market-practice timeframes — not fixed rules — and reasonable timelines depend on the transaction complexity:
- Clean, unconditional offer (no suspensive conditions): 24–72 hours is common for response. Buyers expect quick answers.
- Offers subject to bond approval: 7–21 days is typical (banks need time to process bond applications).
- Offers subject to the sale of buyer’s property: 21–60 days, depending on market and buyer’s circumstances.
- Offers with inspections, municipal clearance or repairs: 7–21 days or as negotiated.
- Multiple competing offers / auction window: seller may set a date/time to consider all offers (e.g., “offers to remain open until 5pm on X date”), often 48–72 hours.
4) If no expiry date is specified
- The seller is expected to accept or reject within a reasonable time. What’s reasonable depends on the market, the buyer’s urgency, and the offer’s complexity.
- If a seller stalls too long, the buyer can withdraw before acceptance and is no longer bound.
- Risk for the seller: the buyer may withdraw and offer the property elsewhere.
5) Practical consequences of delaying too long
- Buyer withdraws and you lose the sale.
- Buyer accepts another property or places an offer elsewhere.
- Market perception: delays can cause buyers to feel the seller is indecisive or unreasonable; agent relationship may suffer.
- If you sign after the offer lapsed, the buyer could refuse — you don’t have a sale until there’s acceptance.
6) Multiple offers — how to manage them ethically and effectively
- You may ask agents to present all offers on a fixed deadline (e.g., “we will consider all offers received by 5pm Friday”).
- Don’t mislead buyers (e.g., don’t falsely claim a phantom higher offer).
- Common approaches:
- Set an “offers deadline”: pick a date/time to receive the best offers and then decide.
- Call for “best and final” offers — tell buyers they must submit their best offer by the deadline.
- Escalation clause: a buyer may include a clause automatically increasing their offer up to a cap — you may accept/reject according to your preference.
- If you want to entertain other offers while holding one, get written permission from the first buyer (rare). Otherwise the first buyer may expect priority until the expiry or withdrawal.
7) Communication & proof
- Always communicate in writing (email, signed OTP). If you accept by email or WhatsApp, save the message and confirm by signing the OTP (safer).
- If you counter-offer or accept, ensure clear dated signatures and a copy sent to all parties.
- Keep records: time-stamped emails, signed documents, proof of delivery — useful if dispute arises.
8) Helpful clauses and sample wording
Use clear expiry language in the OTP so nobody is left guessing.
Suggested clauses the buyer could include (or seller could insist on seeing):
- Fixed expiry: “This offer shall remain open for acceptance until 17:00 on [DD MMM YYYY]. If not accepted by then, the offer lapses.”
- Bond condition timeline: “This offer is subject to the buyer obtaining mortgage bond approval within 14 (fourteen) days from acceptance.”
- Sale-of-property condition timeline: “This offer is subject to the sale of the buyer’s property within 30 (thirty) days from acceptance.”
If you are the seller and want to set a deadline for multiple offers:
- “Sellers will consider offers received in writing up to 12:00 on [date]. Please submit your best and final offer by this time.”
9) Counter-offers: the seller’s lever — but handle carefully
- Making a counter-offer automatically rejects the buyer’s original offer. The buyer can accept, reject or counter again.
- If your aim is to hold the buyer to their original offer while you wait for better offers, do not send a counter (because that kills the original). Instead, ask for time or set a deadline.
10) Practical negotiation tips for sellers
- If you need time: ask for it in writing (e.g., “Can we please have 48 hours to consider?”). This preserves goodwill.
- If you expect better offers: set a firm offers deadline and be transparent with agents.
- If buyer needs time for bond approval, consider accepting with a clear bond-approval timeframe rather than stalling.
- Deposit / escalation: require an earnest deposit on signature to show seriousness.
- Conveyancer readiness: advise your chosen conveyancer so registration and transfer proceed quickly once accepted.
11) Common pitfalls to avoid
- Relying on verbal acceptance or WhatsApp without signed OTP — use written signatures.
- Letting multiple buyers assume they have priority without documented deadlines.
- Counter-offering on the first offer and inadvertently scaring off buyers.
- Leaving offers open for unreasonably long periods (weeks) — buyers will withdraw.
12) Example scenarios with recommended seller actions
- Scenario A — Clean cash buyer offers R1.5m, unconditional: Respond within 24–48 hours; if you need more time, ask for it and explain why.
- Scenario B — Buyer’s offer subject to bond (14 days): If you want the sale, accept with the 14-day bond condition; if you expect other offers, set a competing offers deadline.
- Scenario C — Two offers received, both conditional: Set a “best and final” deadline (48–72 hours). Choose the most reliable buyer (deposit, finance pre-approval, fewer conditions).
13) If there’s a dispute about whether the offer lapsed or was accepted in time
- The documentary trail (dated signed OTP, emails, messages) will be critical.
- Acceptance after the expiry is not automatically binding — the buyer can treat the original as lapsed.
- If disputes escalate, a conveyancer or legal adviser should be consulted.
14) Lake Properties Pro-Tip
Always include a clear expiry time and date in any Offer to Purchase you receive or make. It removes ambiguity, gives both parties certainty, and protects you from losing time or prospects. If you want flexibility to consider several offers, set a specific “offers deadline” and tell all agents — it creates competition without chaos.
If you know of anyone who is thinking of selling or buying property, please call me
Lake Properties
www.lakeproperties.co.za info@lakeproperties.co.za
083 624 7129
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