31/08/2026
You’ve just put in an offer on a house. 🏡 The OTP is signed, you’re already planning the renovations… and then you find your dream home. 😍
Can you simply walk away from the first deal?
Not necessarily.
Here’s what you need to know:
🟢 BEFORE BOTH PARTIES SIGN THE OTP
You can generally still change your mind.
🟢 SUSPENSIVE CONDITIONS
If your OTP is subject to conditions, such as obtaining a bond within a specified period, and that condition isn’t fulfilled in time, the agreement may become null and void without penalty. But miss a deadline and you could face breach consequences.
🟡 COOLING-OFF PERIOD
The Consumer Protection Act provides a five-day cooling-off period for certain property purchases resulting from direct marketing. This generally does NOT apply to typical private or estate-agent-mediated sales.
🔴 OTP SIGNED + NO VALID REASON TO CANCEL
Simply finding a better house doesn’t mean you can walk away. You could be in breach and face:
• Loss of your deposit or liquidated damages
• Claims for further losses
• Legal and bond-related costs
• Potential estate agent commission claims
🛑 NO EASY WAY BACK
If there’s no valid cancellation clause, unfulfilled suspensive condition or mutual agreement to cancel, you can’t simply change your mind.
The safest move? Speak to your attorney or conveyancer BEFORE signing another offer or attempting to cancel the first one.
Get in touch with GB Law
🌐 gblaw.capetown
📩 [email protected]
☎️ +27 (0)21 180 3532