Focus on the Offer to Purchase a Property
What all property buyers need to know before signing an offer to purchase:
Whether you’re buying your first home or acquiring a new commercial property for your business, one thing is true for all buyers: the Offer to Purchase (OTP) is not a formality, it’s a legally binding contract.
Many buyers mistakenly believe they’ll have a chance to negotiate the finer details later or that verbal agreements with the seller will hold. In reality, once both parties sign the OTP, the deal is final. If something is missing or unclear, it can lead to disputes, delays or unexpected costs down the line.
This month’s feature article unpacks what the Offer to Purchase really means, what to look out for and how to avoid common mistakes. It’s written for all property buyers, whether individuals or companies, and provides clear, practical advice on how to protect yourself during one of life’s biggest transactions.
Read our article below to learn what your rights and responsibilities are before you sign, and how a little preparation can go a long way toward a smooth and secure property purchase.
Is the Offer to Purchase the same as a sale agreement?
Yes. Once signed by both parties, the Offer to Purchase is a legally binding contract. It usually serves as the final agreement.
Can we still negotiate terms after signing the OTP?
No. All important terms such as occupational rent, fixtures and conditions must be in the OTP. Changes must be made in writing and signed by both parties.
What happens if I change my mind after signing?
You may be in breach of contract, which can result in penalties. Always consult a legal advisor before signing.
Do I need an attorney to review the OTP?
It is strongly recommended. An attorney can help ensure the terms protect your interests and flag any missing or vague clauses.
Is it different for business buyers versus individuals?
The legal weight of the OTP is the same. Whether buying for personal use or for your company, you need to understand and agree with every clause before signing.
In-depth Analysis:
Why your Offer to Purchase deserves your full attention
By Shaaeerah Ellemdeen