The expiry clause in an Offer to Purchase (OTP) is often just a few lines long, but don’t let its size fool you.

Whether you're buying or selling property in Cape Town, this clause plays a critical role in protecting both parties, keeping timelines clear, and avoiding deals falling through at the last moment.

In this article, we unpack what the expiry clause is, why it matters, and how to use it wisely in your next property transaction.

 

What Is the Expiry Clause?

Also called the “time limit clause,” the expiry clause outlines the deadline by which the seller must accept the buyer’s offer.

If the seller doesn’t accept the offer in writing by the stated date and time, the offer becomes null and void.

This clause is standard in most OTPs, but don’t rely on the heading alone; it’s important to read the actual wording carefully. Details like the time zone and method of communication can make or break a deal, especially in Cape Town’s international property market.

Why It Matters to Both Buyers and Sellers

It provides certainty in a time-sensitive market

Without an expiry clause, offers can remain open indefinitely. That uncertainty can create serious delays for both parties.

For buyers, it ensures you're not stuck in limbo while considering other properties. For sellers, it gives a clear deadline to respond, especially helpful when multiple offers are on the table.

Time zones can impact validity

Cape Town's real estate market often involves international buyers and sellers. In these cases, the expiry clause must reference the correct time zone to ensure there’s no confusion about when the offer lapses.

Tips for Buyers: How to Use the Expiry Clause Effectively

1. Set a fair and reasonable timeframe

Give the seller enough time to properly consider your offer, especially if it's detailed or includes conditions. A rushed deadline could backfire and lead to rejection.

2. Understand the irrevocability of your offer

Most OTPs state that the offer is irrevocable during the expiry period. That means you can’t change your mind or submit another offer elsewhere while your current offer is still valid.

3. Always include an expiry clause

An offer without an expiry clause could technically be accepted weeks later, even if your circumstances have changed. Don’t leave your offer open-ended. Add a clear, time-bound expiry date.

Tips for Sellers: Managing Offers with Expiry Clauses

1. Don’t let time run out

If you need more time to consider an offer, speak to your agent before the expiry period ends. They can request an amendment to the deadline, but only if it's done before the offer lapses.

2. Consider the impact on counter offers

A common mistake is forgetting that the expiry clause still applies while a counteroffer is being discussed. A well-written clause should account for these scenarios and clearly define what happens next if the time expires.

The Role of a Skilled Agent

A professional estate agent ensures that expiry clauses are:

  • Set realistically.

  • Communicated clearly.

  • Tracked and managed properly.

They also guide both buyers and sellers in understanding how the clause affects timelines, negotiations, and the legal standing of the offer.

Make Confident Property Decisions with RE/MAX Living

The expiry clause may seem like a small detail, but it can have a big impact on your property transaction, especially in Cape Town's high-value market.

At RE/MAX Living, we help clients understand every element of the Offer to Purchase, ensuring no detail is overlooked and every opportunity is maximised.

With in-depth legal insight and years of local experience, we’re here to help you navigate your sale or purchase with confidence.

Reach out to our team today to ensure your next property move is managed with care and precision.