Critical steps after your Offer to Purchase is accepted

Getting an Offer to Purchase on your dream home accepted by the seller is a major milestone when buying a home, but it is only the first step in closing the deal. Samuel Seeff, chairperson of the Seeff Property Group, warns that the period between signing the contract and finalising the transfer is governed by specific terms, and navigating these requires prompt action and strategic preparation.

Most real estate sales agreements are subject to suspensive conditions, which are specific clauses that must be fulfilled for the contract to become legally binding, he says. Two of the most common conditions are securing a mortgage loan or selling an existing property.

Seeff says there are essentially six vital steps to ensuring that you don’t lose out on the property:

Step 1 – The first step is securing a home loan prequalification before beginning your house hunt. A formal prequalification gives a clear understanding of your borrowing capacity and identifies potential credit issues early on.

Step 2 – The second step is assembling the required financial documentation such as proof of income, bank statements, and identification documents in advance. This ensures that when your offer is accepted, your formal bond application can be submitted immediately, avoiding delays that could cause suspensive conditions to lapse and void the deal.

Step 3 – The third step applies if your purchase is contingent on selling your existing property. Ideally, your house should already be on the market, or if not, it should be listed immediately and priced accurately based on realistic market valuations. Overpricing leads to extended time on the market which will endanger your new purchase if the seller grows impatient.

Step 4 – The fourth step is ensuring you are completely ready to buy when you submit your offer, with funds and admin aligned so no administrative hurdles stall the process. This includes having the cash ready for a deposit if required as well as the funds to cover all of the transaction costs.

Step 5 – The fifth step is maintaining total financial stability and keeping your credit record completely clean. You must avoid taking on any new loans, credit cards, or large credit purchases until the property is officially transferred into your name. Financial institutions may conduct a final credit check before the property is transferred and any negative change to your credit score or debt ratio may risk the bank withdrawing the loan approval.

Step 6 – The sixth step is to ensure you actively manage the legally binding terms and potential competing buyers during the conditional period. An Offer to Purchase cannot simply be cancelled without legal grounds. Offers with conditions such as a mortgage loan or sale of another property usually include a 72-hour clause allowing sellers to continue marketing the property. If an unconditional offer comes in, you will typically have only 72 hours to waive your suspensive conditions or the offer will lapse.

Once your offer is accepted and all suspensive conditions are fulfilled, the contract becomes unconditional and enters the formal conveyancing phase. The transfer attorney gathers documents, requests rates clearance certificates, and coordinates with the bond attorneys while you sign transfer documents and settle conveyancing fees, transfer duty, and bond costs.

Once guarantees are lodged, the documents are submitted to the Deeds Office for final examination and registration. This final stage typically takes between two to three months, provided there are no administrative delays, culminating in the official transfer of ownership into your name.

Issued by Gina Meintjes