Bridging interest charges from transferring attorneys??

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Ramcat

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Hi Guys,

I have just bought a house and i am a bit annoyed as i have been charged R2010.35 for what they describe as bridging finance.

This was not in the original price/statement and when querying , they responded with the below....

We had to obtain bridging funds to enable the transfer duty & rates applications to be processed so that we could send off the relevant certificates

Please let me know if these charges are normal? If so i'll go ahead and settle but i'm just trying to save all my pennies for the renovations.
 
Ramcat said:
Hi Guys,

I have just bought a house and i am a bit annoyed as i have been charged R2010.35 for what they describe as bridging finance.

This was not in the original price/statement and when querying , they responded with the below....

We had to obtain bridging funds to enable the transfer duty & rates applications to be processed so that we could send off the relevant certificates

Please let me know if these charges are normal? If so i'll go ahead and settle but i'm just trying to save all my pennies for the renovations.
Click to expand...
Normally paying up levies, rates , procuring electrical certs etc are the responsibility of the seller, not the buyer.
 
Venomous said:
Normally paying up levies, rates , procuring electrical certs etc are the responsibility of the seller, not the buyer.
Click to expand...

Hmm true but they are saying transfer duty and rates application, thats not the same as the clearances. Op, did you not pay up front for certain items? I know when I bought again recently they required a certain amount to be paid prior to transfer: that covered the transfer duty and sundry charges of the conveyancing.

Demand a breakdown of this charge.
 
Kosmik said:
Hmm true but they are saying transfer duty and rates application, thats not the same as the clearances. Op, did you not pay up front for certain items? I know when I bought again recently they required a certain amount to be paid prior to transfer: that covered the transfer duty and sundry charges of the conveyancing.

Demand a breakdown of this charge.
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It was a 100%+ bond and the transfer costs were included so i didn't need to pay anything up front - i assume they needed access to the 50k change portion and this is why they used bridging finance. This annoys me though as i would have rather have paid it... I hate interest charges.....
 
Ramcat said:
It was a 100%+ bond and the transfer costs were included so i didn't need to pay anything up front - i assume they needed access to the 50k change portion and this is why they used bridging finance. This annoys me though as i would have rather have paid it... I hate interest charges.....
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If the bank fronted the 100%+ then the lawyers are supposed to have received the funds from the bank. Also, is that finance charges? Thats a lot of money for interest. Raise it with the bond attorneys as well if it was a 108% bond.
 
I'd push back hard.

If this is normal, then why wasn't it declared and agreed in advance? If its not normal then how is it your problem?

We had to obtain bridging funds to enable the transfer duty & rates applications to be processed so that we could send off the relevant certificates
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And this is OP's problem how? Unless he caused a delay somehow I'd say their internal finances are their problem. Surely getting the bloody certificates are what they are already being paid to do.
 
It's a bit steep but then again in my experience many transferring attornies will not even offer to put up or obtain bridging finance. They should have asked you first though and didn't if I read your post correct so they probably have an issue to resolve with you now
 
Scam of note. As with any attorney, they are creating a BS charge out of thin air to screw you over. Push back. Refuse to pay it. If they insist, threaten to report their conduct to the bank. Don't bother threatening to report them to the law society as they will not do **** and the attorneys know it. With the banks, they can be removed from the banks panel which will hurt financially which is all they care about.
 
Sorry for the delayed feedback guys - took leave to renew drivers yesterday:mad: .I have requested a breakdown of charges from them which i am waiting for. To give some more info:

Purchase price R1 300 000
Applied for bond of R1 350 000
Change to be made available by attorneys to cover transfer costs/Rates etc @ R47 000 which is the amount i agreed to.

So effectively i was expecting some change.

I don't think they expected me to challenge this so let's see what happens. Will keep you posted.
 
Ramcat said:
Sorry for the delayed feedback guys - took leave to renew drivers yesterday:mad: .I have requested a breakdown of charges from them which i am waiting for. To give some more info:

Purchase price R1 300 000
Applied for bond of R1 350 000
Change to be made available by attorneys to cover transfer costs/Rates etc @ R47 000 which is the amount i agreed to.

So effectively i was expecting some change.

I don't think they expected me to challenge this so let's see what happens. Will keep you posted.
Click to expand...

You shouldn't even have to request a breakdown, both my transfers gave me very detailed invoices, I knew exactly where what money went where.
 
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