When you reach the stage of signing the offer and the purchase agreement in the home buying process, it's crucial to handle these documents with care, as they are legally binding and set the terms of your property purchase. Here are some important considerations:

Review the Agreement Carefully

• Understand Every Clause: Ensure you fully understand every aspect of the agreement. This includes the sale price, deposit amount, closing costs, and any contingencies such as the sale being subject to a satisfactory home inspection or the buyer securing financing.
• Clarify Terms: Look for terms related to penalties for late payments, rights to terminate the contract, and obligations for both parties regarding property conditions at the time of transfer. Still figuring out your monthly repayments before signing? Use our bond repayment calculator to plan ahead.

Seek Professional Advice

• Legal Review: Consider having a real estate attorney review the agreement before you sign. An attorney can provide clarity on complex legal language and ensure that the contract protects your interests. Not sure how to assess the property’s condition? Schedule an inspection and appraisal before finalising your offer.
• Real Estate Agent Guidance: Your real estate agent can help explain the standard practices and terms commonly included in purchase agreements in your area. Want to know what your current property is worth before committing to another? Get a free market valuation.

Understand Contingencies

This step is one part of the full home buying process, follow our comprehensive property buying guide.

• Home Inspection Contingency: This allows you to have the property inspected within a certain timeframe, and based on the results, you can renegotiate or withdraw your offer without penalty if significant issues are found. For more on legal obligations and known defects, see our guide to mandatory property disclosures in South Africa.
• Financing Contingency: This ensures that if you fail to secure financing by a specified date, you can opt out of the agreement without any financial penalty.
• Appraisal Contingency: Protects you if the property’s appraised value is less than the selling price. You can either renegotiate the price or cancel the contract.
  

Closing and Possession Dates

• Set Realistic Dates: Ensure that the dates scheduled for closing and taking possession of the property are realistic. Consider any potential delays that might occur, such as lender issues or problems discovered during the property inspection.
• Final Walk-Through: Arrange for a final walk-through of the property before closing. This is your last chance to verify that the condition of the home is as agreed upon in the contract.

Record Keeping

• Document Storage: Keep copies of all signed documents related to the home purchase, including correspondence and receipts of any payments made. These records can be vital in resolving any disputes or clarifying terms if confusion arises later.

By paying close attention to these details when signing your offer and agreement, you can help ensure a smoother transition to owning your new home, avoiding common pitfalls that can complicate the property buying process. Need support navigating financing, paperwork, or loan terms? Rawson Finance can help you secure the best bond and simplify the admin.