Quick answer: The OTP (Offer to Purchase) is where most transfer problems are born. A clean contract makes conveyancing faster. A vague contract makes everything slower and more expensive.
People sign OTPs like they’re buying a toaster. Then they realise the OTP is the legal engine room of the entire deal.
Here is the conveyancer-style checklist.
Offer to purchase checklist (what to check)
- Correct buyer and seller names, ID numbers, and marital status details
- Correct property description (not just “the address”)
- Purchase price and payment terms (deposit, guarantees, deadlines)
- Bond approval clause (timeframes, conditions, proof)
- Occupation date and occupational rent (how calculated, when payable)
- Fixtures and fittings included/excluded (avoid emotional disputes later)
- Suspensive conditions (clear, measurable, time-bound)
- CPA / cooling-off clauses (where applicable)
- Breach clause (notice periods, remedies)
- Who appoints the transferring attorney (and wording)
- Commission clause (when it’s earned, who pays)
- Default interest and penalty wording
- Special conditions (sale of existing property, inspections, repairs)
- Electrical/COC and other compliance responsibilities (as applicable)
- Risk and insurance (when risk passes)
- What happens if bond is declined
- What happens if seller cannot give vacant occupation
- Dispute resolution clause (practical and enforceable)
- Signatures and witness requirements
- Addenda (make sure they’re attached and referenced correctly)
- Communication clause (how notices are delivered)
If you’re already in a dispute
Read this: Cancelling an OTP: defects and legal pitfalls
Want an OTP reviewed properly?
Send us the OTP before you sign (or immediately after, if already signed). We’ll tell you where the risk is and what to fix.
Disclaimer: This article is general information and not legal advice.
Simon Dippenaar
Founder & Managing Partner, SD Law
Attorney Simon Dippenaar has a BBusSc LLB degree and Professional Diploma in Legal Practice from the University of Cape Town, and is an admitted attorney of the High Court of South Africa. He is the founder and director of private legal practice, Simon Dippenaar & Associates, with offices in Cape Town and Gauteng representing South African and international clients.
Read articlesThe information on this website is provided to assist the reader with a general understanding of the law. While we believe the information to be factually accurate, and have taken care in our preparation of these pages, these articles cannot and do not take individual circumstances into account and are not a substitute for personal legal advice. If you have a legal matter that concerns you, please consult a qualified attorney. Simon Dippenaar & Associates takes no responsibility for any action you may take as a result of reading the information contained herein (or the consequences thereof), in the absence of professional legal advice.