Question posted in the Property Law category relating to Gauteng
I submitted an OTP for a property that lapsed while I was waiting for bond approval from the banks (I had to renew my work visa first before applying). In the entire process I have been dealing with an estate agent who does not seem to be forthcoming with the truth. Initially the owner accepted a backup offer which miraculously dissappeared. Then the seller got sellers remorse and wanted to increase the asking price of the property (since the initial OTP expired). I has been 3 weeks since the OTP expired and the agnet proposed that my wife and I sign a new OTP with the suspensive condition that the seller has 30 days to find a new propoerty. My questions are as follows:
1. According to SA property Law can such a suspensive condition exist i.e accept the offer on the basis that the seller is able to find a new home? My fear here is that should we accept such a condition, by the time the OTP lapses (If the seller fails to find a new home) we would have lost almost 3 months. And will we be able to get some sort of recourse should the sale not go through?
2. The agent advised us that the registration of the property can proceed with the new OTP? Is this possible given the suspensive condition? And what would be the implications should the deal be cancelled at the last minute?
3. Can my wife and I continue look for property and submit an offer for another property while waiting for the seller to find a new home?
4. If such a suspensive condition is indeed legal what is the maximum amount of time that the seller can receive?
Answer to the Question
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Re 1) Yes.
Re 2) You would only proceed to registration once the condition is fulfilled.
Re 3) Yes. But then you might be stuck with 2 properties.
Re 4) Any amount. The parties must agree.
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