Sellers and Purchasers in Property Battles?

Published on March 1, 2023

Nowadays everybody is subject to the fast pace of modern life. Access to internet and cellphones contribute to the demand for instant results. However, some important decisions need proper consideration and understanding of all the complications associated therewith.

One of these decisions is the buying or selling of fixed property. For most people this is probably the single most important financial decision of their life. Whilst we take our time to budget and assess the affordability of buying a property and whilst we spend hours to identify a suitable property, we fail to allow ourselves a reasonable opportunity to consider the proposed Offer to Purchase and/or Deed of Sale.

Bearing in mind that the Seller of the property is represented by its own estate agent and bearing in mind that the Seller also appoints the transferring attorneys a prospective Purchaser should still ensure that the proposed Offer and/or Deed is in accordance with the parties' agreement.

It seems however that it is at this moment when matters often get fast-tracked, sometimes to the detriment of the Purchaser. The Purchaser is often required to immediately sign the Offer, mostly provided in pro forma form by the agent. The Offer sometimes does not reflect the individual requirements of the Purchaser, as agreed upon.

The Purchaser is then required to attend to the offices of the transferring attorney, as appointed by the Seller and/or the agent for signing of documents and payment of fees. All issues that a Purchaser may have been attended to by either the Seller's agent and/or its attorney.

In some instances, the best interests of the purchaser are not considered and/or addressed. This is when the battle between the Purchaser and Seller may erupt.

The solution to the above scenario is for the Purchasers of fixed property to allow for a reasonable period to consider the Offer of Purchase and/or Deed of Sale, prior to signing thereof.

Prospective buyers have a basic right to take informed decisions and should insist thereon. Purchasers are advised to consider appointing their own attorney to assist therewith.

In a recent matter, the Purchaser resisted a claim for the payment of agent's commission in a failed property transaction. The Purchaser relied on oral agreements entered into between himself and the estate agent, prior to the signing of the Offer to Purchase. The Purchaser's claim was however rejected when the Court found that the Offer to Purchase between the parties represented the total agreement between the parties and rejected the Purchaser's claim of prior oral agreements.

The lesson from the above should be that if involved in the purchasing of fixed property, rather consult your own attorney prior to signing any Offer. Regardless if you are the buyer and/or seller.

W.J. Weiss
Director