Sellers are sometimes confronted with an uneasy situation where more than one buyer is interested in their property.
The following questions have to be considered:
1. Has the Seller accepted an offer subject to suspensive conditions. If yes, then ask:
1.1 Has the Buyer on the initial offer complied with the suspensive conditions of the Offer to Purchase such as securing a bond. If yes, then no further offer may be taken but if no, then ask:
2. Do the terms of the agreement allow for continued marketing and a competing offer to be taken?
2.1 If yes, the Seller can take a competing offer, which allows for the Competing Buyer to fulfil their suspensive conditions. Once done, notice has to be given to the initial Buyer to fulfil or waive their suspensive conditions within the timeframe specified, failing which, the Seller has the option to proceed with the Competing Buyer.
Once the buyer has obtained a bond and fulfilled any other suspensive condition, the Seller won’t be able to sell the property to anybody else. The Offer to Purchase is then binding upon the Parties.
By Nathan Van Zyl from Kruger Attorneys & Conveyancers Inc