Question posted in the Property Law category relating to Western Cape
Good day. This is a question pertaining the continued marketing clause in an OTP where two offers have been made.
The contract states that the seller has the right to put the purchaser to terms if he receives a more suitable offer. It does not mention whether the term "suitable offer " includes or excludes the financial side, but only speaks to the suspensive conditions.
The first offer was for a lesser amount and contained suspensive conditions, namely: Approval of a bond, Subject to a professional property inspection, subject to a personal inspection by the husband as he was abroad when his wife viewed the property.
The second offer was for a higher amount and was a cash offer without suspensive conditions.
I understand the whole putting to terms clause as it pertains to either waiving or fulfilling the suspensive conditions within 72 hours. My question however is about the financial side.
Apart from waiving or fulfilling the suspensive conditions, when put to terms, is purchaser 1 also obliged to match the financial offer made by purchaser 2, who made a more substantial financial offer?
Our estate agent and his legal advisor say that purchaser 1's financial offer if not affected by a higher offer and remains valid at the lower amount.
I don't agree with this as I believe that a "more suitable offer " should include the financial side.