CAPE TOWN, South Africa -
Aug. 28, 2025 -
PRLog -- The
date of acceptance in an
Offer to Purchase (OTP) is extremely important because it determines when the agreement becomes
legally binding on both buyer and seller. Here's why:
1. Contract Formation - An OTP is only an offer until the seller signs and accepts it.
- The contract is not binding until the seller accepts and dates it.
- The date of acceptance marks the official start of the agreement.
2. Suspensive Conditions - Many OTPs include suspensive conditions (e.g., buyer must obtain bond approval within 30 days).
- These time periods usually start running from the date of acceptance, not from when the buyer signed.
3. Deadlines and Timelines - Transfer process steps, bond approval, deposit payments, compliance certificates, and occupation dates are all calculated from acceptance date.
- Without the date, there could be disputes over whether a deadline has been met.
4. Legal Certainty - The acceptance date removes any doubt about when the agreement took effect.
- If not clearly recorded, either party could argue about timelines or even claim the contract never became valid.
5. Risk and Possession - The date of acceptance is the point at which the buyer becomes bound to purchase and the seller becomes bound to sell.
- It also establishes when risk and benefit arrangements in the OTP begin to apply.
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In short: The date of acceptance is the anchor date that ensures the contract is valid, timelines are enforceable, and both parties know their obligations clearly
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