Arzy
Honorary Master
So, we've got an offer in on a place we love subject to the normal suspensions being getting a bond (which I've done) and selling our existing property (which is now an issue).
Within a week of listing our existing property, we got an offer. It was right at the bottom of my acceptable price range but it was supposedly clean in that the buyer already had approval in principle for a bond and a large cash deposit available. The only catch was that he had already sold his existing property and needed to take early occupation. We hesitantly agreed on the basis that a bond offer had to be accepted and the deposit/occupational rent had to be paid before we granted occupation.
This is now where things start to get interesting:
We requested an addendum to the standard agreement to be drawn up, in writing, to reflect the terms above. This was done and sent to the purchaser without us being able to view the addendum and to date, we haven't actually received a signed copy back.
The buyer then apparently wanted to delay occupation for a while as his sale was delayed, the agent refused the request without actually getting an answer from us.
The purchaser only applied for an actual bond 2 weeks after making the offer.
Apparently in the interim, he now also purchased a car and doesn't have the deposit available in cash at the time. It will now be covered via a guarantee from the sale of his existing property and some cash from his savings.
Despite repeated promises that the deposit is being paid/guarantee is being issued on a certain day, neither have come to pass.
Getting the bond was eventually dependent on him settling and canceling a credit card with confirmation in writing from the supplier that this was done.
An offer on the bond was supposed to have been gotten within 30 days of the offer to purchase (Monday) which didn't happen.
Purchaser finally got an approval in principle for a lesser amount on the bond yesterday.
An actual bond offer was finally done this morning.
So realising that the bond wasn't going to be in place on time last week we had a meeting with the agent and principle on Thursday night to discuss our concerns. We were hesitant to just extend the terms as it was posing a problem with having everything in place before the occupation date. The agent was adamant though that everything was in order and the transaction was going ahead but we shouldn't proceed with packing up the house or getting a moving company. Come Monday they called early the morning to confirm again that the guarantee would be in place by 12 and deposit paid by 2. I reminded them again that the period for the bond expires on the day and we needed to do an extension. Nothing further happened and just before midnight I sent them a mail informing them in writing that this was now a problem and stating that the purchaser was in breach of the agreement but I would be grant 7 days in which to remedy the situation subject to the occupation being delayed by 2 weeks. I requested that the agent confirm in writing that they had received my email and a copy of the letter sent to the purchaser in this regard. Neither of which happened yesterday. I simply got a call to inform me that the purchaser wasn't in breach and the agreement had lapsed, the only thing we could do now was to issue an extension which I would have to sign first before it was taken to the purchaser. This was emailed to me but no mention was made of my concerns in respect of occupation which I pointed out to them in an email as they weren't taking my calls. Later in the day I received the extension letter again with a change that occupation would be discussed once all the suspensive conditions were fulfilled. And then still later an email requesting a round table meeting to discuss my concerns at whatever time would suit me, I indicated a time only to receive a response that it didn't suit them.
So after all that we discussed the situation and decided that something just wasn't right about this transaction and sent a mail that as the agreement has lapsed we'll accept that and deem it canceled. No reason to discuss it any further.
My concerns at this point are:
There doesn't seem to be any commitment from the purchaser to get things in place. This is illustrated by the delay in getting the bond, not paying the deposits/having the guarantee issued.
The agent doesn't seem to be acting on my behalf, they are just pushing to get this sale through. Repeated requests for confirmations in writing are just ignored or played off to be nothing.
I somehow doubt the purchasers affordability in the transaction. Only 1 bank proceeded to grant the bond and this only after the purchaser cancelled a R7k credit card. The cash that was supposedly available for the transaction is also not forthcoming.
Be that as it may, and with the bond now granted, in the event that he does now get his guarantee in place and does transfer the balance in cash, I'm worried that he hasn't budgetted for the actual transfer costs. Based on information that the agent has shared with us he is basically using most of his savings just to cover the deposit now and could possibly have a shortfall of R100-R150k for the transfer costs unless he has some other savings he hasn't indicated.
I'm extremely hesitant to give occupation at all at this point. If the purchaser has to get a loan to cover the transfer costs it may actually put the bond at risk.
My view at this point is to possibly change the agreement completely and proceed that occupation is only granted on registration. This may cause the purchaser to walk away though.
My wife's view is that we should just walk away from the sale right now as some things just aren't making sense. There have been misrepresentations, the buyer isn't comitting and the agents are just pushing on without following our instructions.
As I said initially we love the place we want to buy but there seems to be a very large amount of risk in this sale of our existing house. My biggest fear is that we move out because he now has the bond grant and pays the deposits/guarantee only to have him not be able to pay transfer and then I have to fight to get my house back.
Any views? Are we over thinking this?
Within a week of listing our existing property, we got an offer. It was right at the bottom of my acceptable price range but it was supposedly clean in that the buyer already had approval in principle for a bond and a large cash deposit available. The only catch was that he had already sold his existing property and needed to take early occupation. We hesitantly agreed on the basis that a bond offer had to be accepted and the deposit/occupational rent had to be paid before we granted occupation.
This is now where things start to get interesting:
We requested an addendum to the standard agreement to be drawn up, in writing, to reflect the terms above. This was done and sent to the purchaser without us being able to view the addendum and to date, we haven't actually received a signed copy back.
The buyer then apparently wanted to delay occupation for a while as his sale was delayed, the agent refused the request without actually getting an answer from us.
The purchaser only applied for an actual bond 2 weeks after making the offer.
Apparently in the interim, he now also purchased a car and doesn't have the deposit available in cash at the time. It will now be covered via a guarantee from the sale of his existing property and some cash from his savings.
Despite repeated promises that the deposit is being paid/guarantee is being issued on a certain day, neither have come to pass.
Getting the bond was eventually dependent on him settling and canceling a credit card with confirmation in writing from the supplier that this was done.
An offer on the bond was supposed to have been gotten within 30 days of the offer to purchase (Monday) which didn't happen.
Purchaser finally got an approval in principle for a lesser amount on the bond yesterday.
An actual bond offer was finally done this morning.
So realising that the bond wasn't going to be in place on time last week we had a meeting with the agent and principle on Thursday night to discuss our concerns. We were hesitant to just extend the terms as it was posing a problem with having everything in place before the occupation date. The agent was adamant though that everything was in order and the transaction was going ahead but we shouldn't proceed with packing up the house or getting a moving company. Come Monday they called early the morning to confirm again that the guarantee would be in place by 12 and deposit paid by 2. I reminded them again that the period for the bond expires on the day and we needed to do an extension. Nothing further happened and just before midnight I sent them a mail informing them in writing that this was now a problem and stating that the purchaser was in breach of the agreement but I would be grant 7 days in which to remedy the situation subject to the occupation being delayed by 2 weeks. I requested that the agent confirm in writing that they had received my email and a copy of the letter sent to the purchaser in this regard. Neither of which happened yesterday. I simply got a call to inform me that the purchaser wasn't in breach and the agreement had lapsed, the only thing we could do now was to issue an extension which I would have to sign first before it was taken to the purchaser. This was emailed to me but no mention was made of my concerns in respect of occupation which I pointed out to them in an email as they weren't taking my calls. Later in the day I received the extension letter again with a change that occupation would be discussed once all the suspensive conditions were fulfilled. And then still later an email requesting a round table meeting to discuss my concerns at whatever time would suit me, I indicated a time only to receive a response that it didn't suit them.
So after all that we discussed the situation and decided that something just wasn't right about this transaction and sent a mail that as the agreement has lapsed we'll accept that and deem it canceled. No reason to discuss it any further.
My concerns at this point are:
There doesn't seem to be any commitment from the purchaser to get things in place. This is illustrated by the delay in getting the bond, not paying the deposits/having the guarantee issued.
The agent doesn't seem to be acting on my behalf, they are just pushing to get this sale through. Repeated requests for confirmations in writing are just ignored or played off to be nothing.
I somehow doubt the purchasers affordability in the transaction. Only 1 bank proceeded to grant the bond and this only after the purchaser cancelled a R7k credit card. The cash that was supposedly available for the transaction is also not forthcoming.
Be that as it may, and with the bond now granted, in the event that he does now get his guarantee in place and does transfer the balance in cash, I'm worried that he hasn't budgetted for the actual transfer costs. Based on information that the agent has shared with us he is basically using most of his savings just to cover the deposit now and could possibly have a shortfall of R100-R150k for the transfer costs unless he has some other savings he hasn't indicated.
I'm extremely hesitant to give occupation at all at this point. If the purchaser has to get a loan to cover the transfer costs it may actually put the bond at risk.
My view at this point is to possibly change the agreement completely and proceed that occupation is only granted on registration. This may cause the purchaser to walk away though.
My wife's view is that we should just walk away from the sale right now as some things just aren't making sense. There have been misrepresentations, the buyer isn't comitting and the agents are just pushing on without following our instructions.
As I said initially we love the place we want to buy but there seems to be a very large amount of risk in this sale of our existing house. My biggest fear is that we move out because he now has the bond grant and pays the deposits/guarantee only to have him not be able to pay transfer and then I have to fight to get my house back.
Any views? Are we over thinking this?
