First-time Buyer Journey · Step 4
Check the clauses before you sign
You’ve negotiated the purchase price, agreed on the terms and are ready to sign the Offer to Purchase. Before you do, take a moment to understand exactly what you’re agreeing to. While estate agents and conveyancing attorneys will guide you, it’s ultimately your responsibility to understand the contract — because once signed, it creates rights and obligations for everyone involved.
Edited by
Annali Janse Van Rensburg
Senior Editor
Annali is MyProperty's resident editor, responsible for producing trusted, accessible content that helps South Africans navigate every stage of their property journey.
Many first-time buyers focus on the purchase price but overlook the legal clauses that determine what happens if financing is delayed, the property is damaged before transfer, occupation dates change, or either party fails to meet their obligations.
1Understand suspensive conditions
A suspensive condition must be met before the sale can proceed. These clauses protect both buyer and seller by making the agreement dependent on certain events occurring within a specified period. Common examples include:
- Approval of a home loan
- Sale of the buyer’s existing property
- Approval of building plans where applicable
- Successful completion of inspections
Each suspensive condition will usually include a deadline. If the condition isn’t fulfilled in time, the agreement may lapse unless both parties agree otherwise. For each one, always understand:
- What the condition requires
- Who is responsible for meeting it
- The deadline
- What happens if it isn’t fulfilled
2Know the difference between occupation and transfer
Many first-time buyers assume they become the legal owner as soon as they receive the keys. This isn’t always the case.
Occupation
The date you may move into the property.
Transfer
The date ownership is officially registered in your name at the Deeds Office.
These dates may be the same, but they don’t have to be. If you occupy the property before transfer, additional conditions usually apply. Understanding the distinction helps avoid confusion later in the transaction.
3Understand occupational rent
If either the buyer or seller occupies the property before transfer takes place — for example, a buyer moves in early, or a seller stays on after the agreed occupation date — occupational rent may become payable. The Offer to Purchase should specify:
- Who pays occupational rent
- How much is payable
- When payments begin
- When they end
Never assume occupation before transfer is free.
4Read the seller’s property disclosure carefully
South African property transactions must include a mandatory disclosure form completed by the seller. This document identifies defects or issues the seller is aware of. Examples include:
- Roof leaks
- Damp
- Plumbing issues
- Electrical faults
- Boundary disputes
- Previous flooding
- Structural movement
Read this document carefully and ask questions about anything that concerns you. If necessary, arrange an independent property inspection before proceeding.
5Understand fixtures and fittings
One of the most common causes of disputes is confusion about what stays with the property. The agreement should clearly identify any fixtures or special items included in the sale. Examples include:
- Curtain rails
- Blinds
- Air conditioners
- Built-in appliances
- Security cameras
- Swimming pool equipment
- Solar panels
- Batteries
- Inverters
- Generators
If an item is important to you, make sure it’s recorded in writing. Verbal agreements are difficult to enforce.
6Know what happens if someone breaches the agreement
The Offer to Purchase also explains what happens if either party fails to meet their obligations. Examples include:
- Failing to pay the deposit
- Failing to obtain finance within agreed timeframes
- Missing important deadlines
- Refusing to proceed without legal grounds
The agreement will normally include procedures that must be followed before cancellation or legal action can occur. Understanding these clauses helps you appreciate the importance of complying with every obligation in the contract.
7Ask questions before you sign
Buying a home is likely to be one of the biggest financial commitments you’ll ever make. If there’s a clause you don’t understand, ask. Your estate agent, bond originator and conveyancing attorney all play important roles in explaining the transaction. Never feel pressured into signing a legal agreement you haven’t had an opportunity to read and understand.
Common mistakes first-time buyers make
Skipping over legal clauses
Assuming verbal promises are binding
Confusing occupation with ownership
Ignoring deadlines
Forgetting to check what is included in the sale
Not reading the seller’s disclosure
Waiting until after signing to ask questions
Taking an extra day to review your contract is far better than discovering a misunderstanding after the agreement becomes binding.
Your contract review checklist
- Read every page of the Offer to Purchase
- Understood all suspensive conditions
- Confirmed important deadlines
- Reviewed the seller’s disclosure
- Confirmed what fixtures are included
- Understood the occupation date
- Understood the transfer process
- Asked questions about anything you’re unsure of
- Kept a signed copy of the agreement
Frequently asked questions
This guide is general information to help you understand the clauses in an Offer to Purchase. It isn’t legal advice — for anything specific to your transaction, check with your estate agent, conveyancer or attorney before signing.
Next step
Bond & FICA paperwork: The paperwork that keeps things moving
You’ve signed the Offer to Purchase. Now it’s time to complete the paperwork that keeps your transaction moving — your home loan, FICA verification and the legal documentation.
Still have questions?
This guide is general information to help you understand a property contract — it isn’t legal advice. For an instant answer to your questions, ask our assistant. For a question about your own transaction, ask Cara directly.