A signed Offer to Purchase can feel final, but many property transactions fall apart after this stage. According to Aneeqah Andrews, founder and director of Andrews Property Group, many deals fail due to avoidable errors.
“Many deals fall through due to preventable mistakes, often financial or due to poor preparation. Buyers sometimes make rushed decisions without fully understanding the property or their own financial limitations,” she says.
Samuel Seeff, chairman of the Seeff Property Group, explains the legal reality. “Once signed by both buyer and seller, an Offer to Purchase becomes a legally binding contract.” He adds that buyers cannot withdraw without consequences unless specific conditions apply. The cooling-off period only applies to properties priced below R250,000.
So why do deals still fall through?
Financing failures and affordability issues
The most common reason remains failed financing. “Most buyers rely on bank finance,” says Seeff. “If a buyer cannot secure a home loan due to credit or affordability issues, the OTP becomes null and void.”
Andrews highlights a frequent mistake after approval. Buyers sometimes take on new debt, such as purchasing a car, which changes their affordability. “Banks can withdraw bond approval, derailing the entire deal,” she warns.
She stresses discipline. “Do not spend recklessly once your bond is approved. The process only ends when the transfer is registered.”
Seeff adds that some offers are contingent on the sale of an existing property. “If that sale does not happen within the agreed time, the offer becomes null and void.”
Economic shifts also pose risks. Rising interest rates, inflation, or job instability during the transfer period can disqualify buyers who initially qualified.
Emotional decisions and buyer’s remorse
While less common than financial issues, emotional decisions still matter. Andrews notes that rushed purchases often lead to regret. Buyers may not view the property enough times or consider daily realities such as commuting routes or body corporate finances.
Property condition also plays a role. “If significant defects are uncovered, buyers may withdraw or demand a major price reduction,” says Seeff.
Andrews urges thorough checks. “Buyers should bring in professionals such as builders or electricians. You cannot rely on appearances alone.”
She also advises requesting the mandatory disclosure document and reviewing defects upfront.
Repairs, compliance, and legal risks
Deals also collapse when sellers fail to complete agreed-upon repairs. “If these are not done within the agreed time or to the buyer’s satisfaction, the sale may fail,” says Seeff.
Compliance certificates remain a legal requirement. These include electrical, gas, and plumbing certificates. “Failure to obtain these within the agreed period gives the buyer grounds to withdraw or renegotiate,” he explains.
Unlawful structures present another major risk. Missing municipal approvals can lead to delays, additional costs, or even demolition.
Andrews notes that banks may reject bond applications if valuators identify unapproved structures or discrepancies with municipal plans.
The pressure of the 72-hour clause
Many buyers overlook the 72-hour clause. Andrews explains that if the seller receives a superior offer, the buyer must satisfy suspensive conditions within 72 hours of notice, or risk losing the property.
This clause places pressure on buyers to move quickly and remain organised throughout the due diligence and bond process.
Preparation reduces risk
Property transactions require more than a signed document. Careful preparation, financial discipline, and proper inspections reduce the risk of a deal collapsing.
With the right guidance and attention to detail, buyers and sellers improve their chances of reaching registration without disruption.
