Making an Offer on a Home in South Africa: What Buyers Need to Know

Buying a home in South Africa is an exciting step, and understanding how to make a formal offer can help you move confidently through the process. Whether you're a first-time buyer or an experienced investor, the steps below outline how offers work and what to expect when securing a property.

1. Get Pre-Qualified

Before submitting an offer, it’s important to obtain a home loan pre-qualification from a bank or bond originator. This shows sellers that you’re financially capable and strengthens your negotiating position.

2. Submit an Offer to Purchase (OTP)

In South Africa, offers are made through a legally binding document called an Offer to Purchase.
The OTP includes:

• The purchase price

• Deposit amount (if any)

• Conditions (e.g., subject to bond approval)

• Dates for occupation

• Inclusions/exclusions (appliances, fixtures, etc.)

Once both parties sign the OTP, it becomes a contract. Always review the document carefully before signing.

3. Add Suspensive Conditions

Most buyers include suspensive conditions, which protect you by allowing the offer to fall away if conditions aren’t met. Common examples include:

• Subject to obtaining bond approval

• Subject to the sale of your current property

• Subject to satisfactory home inspection

These conditions provide you time to finalize financing and due diligence without losing your deposit.

4. Negotiate Where Needed

Sellers may accept your offer, reject it, or come back with a counteroffer. Negotiations typically focus on:

• Price

• Deposit amount

• Occupation date

• Repairs or credits
  Your agent can guide you through these steps to ensure your interests are protected.

5. Bond Approval & Transfer Process

After the OTP is accepted:

• Your bank will process your home loan application.

• Bond attorneys (appointed by the bank) prepare the bond registration.

• Transfer attorneys (appointed by the seller) handle the property transfer.

These legal steps usually take 6–12 weeks, depending on the banks and attorneys involved.

6. Pay Transfer & Bond Costs

Buyers are responsible for:

• Transfer duty (unless the property is below the threshold or is a VAT-registered new development)

• Transfer attorney fees

• Bond registration fees

Your attorney will give you a detailed cost breakdown.

7. Take Occupation & Finalize Transfer

Once the transfer is officially registered with the Deeds Office, the property legally becomes yours. Keys, occupation, and utility changes are arranged at this stage.

Final Thoughts

Making an offer on a home in South Africa is a structured process guided by the Offer to Purchase. With the right preparation, legal understanding, and professional guidance, you can secure your ideal property smoothly and confidently.