Cancelling a sales agreement
Category Property News
The crippling effects of the pandemic has left property purchasers under financial pressure, leaving them to question grounds for cancellation once an offer has been signed.
Once signed by all parties, the offer becomes a legally binding document on all parties. It can be cancelled, however there are consequences, unless otherwise stated within.
In the event of a suspensive condition not being met, such as the purchaser failing to secure a bond, the deal can be dismissed without any effects on the purchaser.
There is no "cooling off" period as per the Consumer Protection Act, as the Act allows for transactions under the price of R250 000.
It is in the best interest to inform the bank and the seller of the financial situation, rather than breaching the contract. An early declaration could allow for a civil agreement to let the deal pass, instead of a lengthy dispute which could lead to a large legal and expensive matter.
Author: Prime Property Marketing
