Difference Between An Option To Purchase And A Pre-Emptive Right When Purchasing Property

Persons must distinguish between an option and a pre-emptive right when purchasing property, both have separate legal consequences.

With regards to the option to purchase, the seller makes an offer to sell to the purchaser at a specific price, such offer to remain open for a certain period. Once the purchaser makes the offer, the seller then has the option to accept the offer within that period.

An option to purchase must be distinguish from a right of pre-emption which right is given to a person to purchase a property should the seller decide to sell sometime in the future. The seller is not obliged to sell, it is only when he decides to sell that he grants the purchaser first right of refusal or a pre-emptive right to purchase the property.

Should you have any further questions in this regard, kindly contact craig@burmeisters.co.za.