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Can seller delay the property sale and what about our bond?

26 Jun 2017

A Property24 reader asks:

A Property24 reader says they signed an offer to purchase, but the seller now wants to wait for his bond to cancel to avoid penalties. Is this legal?

We have purchased a property, the offer to purchase was signed at the end of May.  We have now been informed by the transferring attorneys that the seller wants to wait the 90 days for his notification period to cancel his bond to be up, before the transfer process takes place.

Is this legal?  What happens to our bond that was approved on the 27th May?

Jaco Rademeyer, from Jaco Rademeyer Estates, responds:

The contract as entered into between the parties would set out the time-frames which need to be adhered to by the seller and the purchaser.

The purchaser should have been aware that there would be penalty interest payable by him should he not give his bank the requisite 90 days’ notice of the cancellation of his bond.  Should the offer to purchase not make provision for the 90 days which the seller is now trying to stall the sale with, the purchaser should demand that the transfer continues as per the time-frames as set out in the offer to purchase.

In order to see when the bond qualification would lapse, the bond approval as granted by the bank will set out these terms and this should be studied as a matter of urgency in order to ascertain the current position. It is only reasonable that the bond qualification would not be valid indefinitely, and this is a very important factor to take into account as it could mean that should the parties agree to wait the 90 days’ notice, that the purchaser’s bond qualification could lapse and the sale then subsequently not take place.

Readers may submit questions to Property24’s Guest Expert panel and/or comment below. We may not be able to answer all questions received, but all will be considered.

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