Buying a house can I still cancel?

[diapason]

I drafted the OTP myself

A very big mistake!

 

[rietrot]

What you can still do now is agree on a date for registration with her and the attorneys.

 

[isie]

I drafted the OTP myself and only included a timeframe for me to obtain finance... Nothing for submission of documents for registration purposes.

Technically if no date was specified t can still lapse after a Reasonable period - what that could mean though is up to the 2 of you.
Honestly i'm trying to figure out reasonable reasons to delay a sale - she can't afford to pay the outstanding Municipal chargers , or she didn't give the bank 90 days notice to cancel the bond

The attorneys themselves should be pushing too - Have you paid them as yet?
if not advise them that money will not be paid until all documents have been singed and submitted by the Seller - they get paid the same amount no matter what so logically they will try and get the money ASAP.

 

[Anti-Chris]

Technically if no date was specified t can still lapse after a Reasonable period - what that could mean though is up to the 2 of you.
Honestly i'm trying to figure out reasonable reasons to delay a sale - she can't afford to pay the outstanding Municipal chargers , or she didn't give the bank 90 days notice to cancel the bond

The attorneys themselves should be pushing too - Have you paid them as yet?
if not advise them that money will not be paid until all documents have been singed and submitted by the Seller - they get paid the same amount no matter what so logically they will try and get the money ASAP.

IF there are outstanding monies on the municipal account, how would that affect the sale?
No I have not paid the attorneys as yet. Good thing is that the same attorneys are dealing with the transfer and the registration, I have not yet paid either of them.

 

[Kosmik]

imo you have to have a registered estate agent on the deal legally?

No you don't. You have to have a conveyancing attorney.

 

[isie]

IF there are outstanding monies on the municipal account, how would that affect the sale?

Sale cannot go through without the clearance certificate - and you can't get a clearance certificate from municipality if account is in arrears.

No I have not paid the attorneys as yet. Good thing is that the same attorneys are dealing with the transfer and the registration, I have not yet paid either of them.

That good - so speak to them - the quicker everything goes the faster they get paid.


I hope you negotiated a better price since you got the same Attorney to deal with Transfer and bond registration?

 

[Anti-Chris]

Sale cannot go through without the clearance certificate - and you can't get a clearance certificate from municipality if account is in arrears.

I am starting to think that this might be the problem... The attorneys just informed me that they are waiting for the seller to send pictures of the water and electricity meters to obtain a clearance certificate... She never mentioned this to me... I will send this to the attorneys myself today.
Lets say she owes a certain amount and we are unable to obtain a clearance certificate. Does this deal automatically fall through? Who is then liable to pay the attorney's costs?

 

[isie]

I am starting to think that this might be the problem... The attorneys just informed me that they are waiting for the seller to send pictures of the water and electricity meters to obtain a clearance certificate... She never mentioned this to me... I will send this to the attorneys myself today.
Lets say she owes a certain amount and we are unable to obtain a clearance certificate. Does this deal automatically fall through? Who is then liable to pay the attorney's costs?

Normally the attorneys ask you to pay them 3 times your monthly costs for all services, so like in a complex its 3 X levy, 3x rates and 3x electricity. and once everything is cleared you get back whatever was overpaid.
So even if you not in arrears the amount can be substantial


I honestly have no idea who is liable - I would assume the onus falls on her as she would be the liable part - but I could be wrong here.

 

[Steamy Tom]

I am starting to think that this might be the problem... The attorneys just informed me that they are waiting for the seller to send pictures of the water and electricity meters to obtain a clearance certificate... She never mentioned this to me... I will send this to the attorneys myself today.
Lets say she owes a certain amount and we are unable to obtain a clearance certificate. Does this deal automatically fall through? Who is then liable to pay the attorney's costs?

i think the lawyers are able to pay it if it is holding up the sale unreasonably and then deduct it from her payout (possibly even with interest)

if the deal were to fall through because of her your contract should have provision that she would be liable and vice versa

 

[Alton Turner Blackwood]

Technically if no date was specified t can still lapse after a Reasonable period - what that could mean though is up to the 2 of you.
Honestly i'm trying to figure out reasonable reasons to delay a sale - she can't afford to pay the outstanding Municipal chargers , or she didn't give the bank 90 days notice to cancel the bond

The attorneys themselves should be pushing too - Have you paid them as yet?
if not advise them that money will not be paid until all documents have been singed and submitted by the Seller - they get paid the same amount no matter what so logically they will try and get the money ASAP.

No, that can't be it. If that was the case then the conveyancing attorneys would have informed her about bridging finance. Remember, once the conveyancing attorneys have the guarantee from the bond attorneys, the deal is practically sealed. So the interest they will get is free money for the bridging finance company who then gets paid back (plus interest) once transfer happens. This is how I paid for my electrical and plumbing certificates when I sold because I was broke as hell with fixing all the defects I had.

So no, money cannot be the issue.

 

[Alton Turner Blackwood]

I am starting to think that this might be the problem... The attorneys just informed me that they are waiting for the seller to send pictures of the water and electricity meters to obtain a clearance certificate... She never mentioned this to me... I will send this to the attorneys myself today.
Lets say she owes a certain amount and we are unable to obtain a clearance certificate. Does this deal automatically fall through? Who is then liable to pay the attorney's costs?

No, the deal won't fall through. Since the municipal account is in her name and she's the seller, it's her responsibility. So she'll be in breach once the non-existent occupation date passes.

 

[Alton Turner Blackwood]

Normally the attorneys ask you to pay them 3 times your monthly costs for all services, so like in a complex its 3 X levy, 3x rates and 3x electricity. and once everything is cleared you get back whatever was overpaid.
So even if you not in arrears the amount can be substantial


I honestly have no idea who is liable - I would assume the onus falls on her as she would be the liable part - but I could be wrong here.

Nope, you're right. Municipal account paid up three months in advance, beetle, water, gas and electrical compliance certificate all for her account.

 

[Neo_X]

why oh why would you draft an OTP yourself? - especially for such a large transaction.
CNA etc has draft versions available that you can use.

best recommendation is to go talk with your lawyer to see what can be done to speed up the process.

 

[isie]

No, that can't be it. If that was the case then the conveyancing attorneys would have informed her about bridging finance. Remember, once the conveyancing attorneys have the guarantee from the bond attorneys, the deal is practically sealed. So the interest they will get is free money for the bridging finance company who then gets paid back (plus interest) once transfer happens. This is how I paid for my electrical and plumbing certificates when I sold because I was broke as hell with fixing all the defects I had.

So no, money cannot be the issue.

Makes sense - but then again not everyone will think like you.
Just trying to think of a logical reason a seller will delay anything.

 

[Anti-Chris]

why oh why would you draft an OTP yourself? - especially for such a large transaction.
CNA etc has draft versions available that you can use.

best recommendation is to go talk with your lawyer to see what can be done to speed up the process.

I downloaded a draft from the internet to use as a basis... It did not include clauses about registration dates etc...

 

[Anti-Chris]

Makes sense - but then again not everyone will think like you.
Just trying to think of a logical reason a seller will delay anything.

The only thing I can think of is that she does not know about the bridging finance option or more likely, want to drag the process as long as possible to ensure she gets as much as possible in rent before the property is registered in my name.

 

[yebocan]

It is moers stressful already, purchasing property... and then you have all the other little stresses, that pop up along the way... I would kill, if the seller, does the crap the OP is going through.

 

[Alton Turner Blackwood]

The only thing I can think of is that she does not know about the bridging finance option or more likely, want to drag the process as long as possible to ensure she gets as much as possible in rent before the property is registered in my name.

I think the best is to meet with her and take a "blank cheque" pre-drafted addendum with only space for you to fill in a date and signature. Once signed, make a copy for her and the attorneys

 

[isie]

The only thing I can think of is that she does not know about the bridging finance option or more likely, want to drag the process as long as possible to ensure she gets as much as possible in rent before the property is registered in my name.

Apologies if i missed the post in this regards - but you are the current tenant on the premises?

 

[butters89]

Apologies if i missed the post in this regards - but you are the current tenant on the premises?

Yip, he's renting the house, and there's a flat at the back which he pans on renting out I assume