Seven Questions to Ask Before Accepting an Offer to Purchase

Receiving an offer to purchase is an important moment. The price may be the first thing you look at, but an offer is made up of more than one number.

Before accepting, it is worth pausing to make sure you understand the overall transaction and the commitments it creates.

This is not about turning every seller into a property lawyer or tax expert. It is about recognising that the terms behind an offer can matter just as much as the headline price.

1. What is the offer asking me to agree to?

An offer to purchase sets out the proposed terms on which a buyer wants to acquire the property. Once accepted, it can become a binding agreement.

Before signing, make sure you understand the broad structure of the offer, the main dates and the obligations expected from both parties. If anything is unclear, it is better to clarify it before accepting than after the transaction is underway.

2. What needs to happen before the transaction can proceed?

Some offers include conditions that must be fulfilled before the sale can move forward. These can relate to finance, the sale of another property, approvals or other matters.

The presence of a condition does not automatically make an offer unsuitable. The important point is to understand what still needs to happen and how that may affect certainty and timing.

3. What are the key deadlines?

Offers often include deadlines for deposits, finance, occupation, transfer and other requirements.

A deadline may seem like a small detail when reading an offer, but it can become very important once the transaction is in progress. Consider whether the proposed timeline is practical for your circumstances and whether it aligns with your own plans.

4. When will occupation take place?

Occupation and registration are not always on the same date. If either party will occupy the property before transfer, the arrangement should be clear.

Consider how the proposed occupation date fits with your move, existing lease, business operations or other commitments. Where applicable, the agreement should also deal with the financial and practical arrangements during that period.

5. What costs or tax issues may need attention?

Property transactions can involve costs and tax considerations that depend on the property, the parties and the structure of the transaction.

Depending on the circumstances, these may include VAT, transfer duty, capital gains tax, rates, levies and transfer-related costs. In South Africa, a property sale is generally subject to either VAT or transfer duty rather than both.sars.gov

Capital gains tax may also be relevant to the seller’s overall net outcome. Whether it applies, and the amount involved, depends on the seller’s circumstances, the nature of the property and applicable tax rules.

This can be especially important in commercial and industrial transactions, where VAT, leases, entities or income-producing operations may require additional consideration.

The purpose is not to determine the tax outcome from the offer alone. It is to identify early where input from a conveyancing attorney, tax practitioner or accountant may be required.

6. Have the relevant property disclosures been addressed?

Where a property practitioner is involved, the Property Practitioners Act requires a completed mandatory disclosure form to be provided to a prospective purchaser intending to make an offer and attached to the agreement for sale. It forms an integral part of that agreement.theppra+1

Make sure you understand what has been disclosed and whether there is information that should be clarified before you proceed.

7. Does this offer work for my circumstances?

The best offer is not always the highest offer—or the offer with the highest apparent net proceeds.Your preferred outcome may depend on timing, certainty, occupation needs, financial commitments and the overall practical demands of the transaction.

An offer should be considered in the context of what you need from the sale—not only what the buyer is prepared to pay.

Before you commit

Every transaction has its own facts, wording and commercial context. DealCheck provides an independent commercial review of offers to purchase, helping sellers understand the price, key terms, timelines, conditions and practical transaction risks before deciding whether to accept, counter or decline.

DealCheck does not provide legal or tax advice and does not replace a conveyancing attorney or tax practitioner.