A person who enters into a sale needs to be aware of the legal implications that could arise if they decide to pull out of the property purchase which would be a breach of the sale contract.
Buyers could perhaps say that their bond finance application was rejected, however sellers should ask the bank for proof of this.
After the deal has been signed, the buyer could have a change of heart and decide that they don’t want to go through with the purchase. The buyer doesn’t apply for bond finance, but it is not difficult for the seller to catch the purchaser out in this situation.
Otherwise, the buyer may simply express that he or she does not want to go through with the transaction.
A misinterpretation of the Consumer Protection Act could result in the buyer feeling entitled to cancel the sale based on the cooling off period mentioned in the Act.
However, this only applies to property under R250,000 and not to property that is above this price margin.
While the purchaser of the property is afforded certain rights which help to protect him or her, there are also obligations that need to be adhered to.
If the buyer wishes to make use of the right to cancel a sale during the cooling off period, the sale would have had to have been as a result of direct marketing.
This cooling off period cannot be applied to purchases made as a result of any other form of marketing. Such purchases are not protected by the CPA.
Any cancellation of sale agreement is a complicated one and thus buyers should exercise caution prior to signing any legally binding agreement.
In some cases the seller could allow an indecisive buyer to cancel the agreement because the fluctuating market creates a demand.
However, most of the time sellers are going to be less inclined to make such allowances for a buyer who simply has a change of heart.
Going into such a situation with the necessary knowledge beforehand can help to keep you informed on all the options available to you and the procedures you should follow.
Don’t let ignorance result in issues down the line. Contact legal experts in property law.
Subscribe to our Newsletter
Book a Free Consultation
Bond & Transfer Calculator
Estate Agent Training
Get the latest updates in your email box automatically.