My first property

D

droidx

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Hi everyone,

I regularly read good advice on here regarding property purchases.
I hope for more of the same, it is presumably an easy question to answer, but I would like to know what your opinions are.

The purchase of my first property is in a rather advanced stage. I have already signed the transfer and bond documents, and paid the transfer attorneys.
They still had to obtain rates clearance and the relevant compliance certificates from the seller (beetle, water and electricity) in order to lodge transfer.

However, today I received an e-mail from the seller, along with invoices for repairs relating to obtaining the water as well as electricity compliance certificates.
According to him, during our negotiations, he dropped the price (only by R10k) as it was supposedly agreed I would effect repairs. I was specific in my mail, and mentioned a counter top which was swollen as well as painting which he did not have to do. His mail said he would have done this along with other odds and ends so he will agree to my price.

Fast forward a few months down the line, in his attempt to obtain the compliance certificates he attempts to shift the bill citing our negotiation as the reason. This must fall under his definition of "odds and ends".

The deed of sale clearly states that the seller is must obtain the compliance certificates and that any related costs including that for repairs is for the sellers account.

Everything has been done in a good spirit thus far, and I let him know what I agreed to during the negotiation, he did say that he may not have been specific enough in what he meant. He has now asked if we can meet on a middle ground, which I have not agreed to.

Am I being reasonable by refusing this? Would a reasonable person assume that he would have meant costs like this in his description as "odds and ends"?

I would never agree to a R10k drop in price when I am liable for repairs of these nature and I have no clue what they will cost.

All opinions welcome.
 
Seller is taking a chance. The contract should be followed.
 
Have your dealings with the seller mediated via the transfer attorneys. It's a bad idea dealing directly with the seller, especially when it comes to a significant purchase such as a property.
 
droidx said:
According to him, during our negotiations, he dropped the price (only by R10k) as it was supposedly agreed I would effect repairs. I was specific in my mail, and mentioned a counter top which was swollen as well as painting which he did not have to do. His mail said he would have done this along with other odds and ends so he will agree to my price.
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Don't have all the detail but that part in his email should be your answer. You say he stated that he will take care of the work requested together with other odds and ends and agreed to your price.

To me it sounds like he agreed to do the work and agreed to the selling price. If he said that he agrees to the selling price BUT that he will have to do other work which will be extra or for your account then its a different matter.

Guess it comes down to the wording in those mails.

Not sure about the amount in question but if its not that much then you should ask yourself whether its worth it to take legal action. In most cases suing somebody is a waste of time unless its really worth it. One lesson I learned the hard way was that one should never use the court to try and score points or prove a point. It only ends up backfiring on you.
 
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Yeah you are paying the transfer lawyers a fortune to handle this kind of thing so make full use of them.

Those certifications are his problem I believe and form part and parcel of his ability to sell the place at all.
 
Thanks for the comment. The amount is not really that great, but my opinion is that this is a selling cost.
I am sure that if I should find a latent defect, he will not want to sell a middle ground as the voetstoots clause covers him.
In my plain non-legal English it is clearly stated that these costs are for his account.
I just wanted to know if I am unreasonable in refusing this.
He said he will go ahead with repairs,
and I should inform him of my decision. I will call the transfer attorneys before replying to him. Thing is it is his choice of attorney with whom he had built up a relationship. I hope that doesn't influence anything.
 
Those costs are for the account of the seller. If he dropped the selling price, it has nothing to do with the matter.
 
srothman said:
Have your dealings with the seller mediated via the transfer attorneys. It's a bad idea dealing directly with the seller, especially when it comes to a significant purchase such as a property.
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100% agree with this
 
The seller has to sort it out.
Think they are just trying their luck.
 
He is definitely trying his luck. Just refer it to the attorneys. If he does not pay for it, the transfer won't go through and he will be liable for pulling out. He will most likely have a pay a big fine.

There is no way he would chance that.
 
As others have said, he is just trying his luck...

Getting compliance certificates is for his account not yours.
 
Thanks everyone for the input.
I will not pay a cent towards this, the seller seems upset as in his mind this is why he dropped the price although not clearly stated.
In that case he should not have signed the deed of sale because it clearly states it is for the sellers account.

The ball is in his court to compete these things before transfer can be lodged.
 
droidx said:
Thanks everyone for the input.
I will not pay a cent towards this, the seller seems upset as in his mind this is why he dropped the price although not clearly stated.
In that case he should not have signed the deed of sale because it clearly states it is for the sellers account.

The ball is in his court to compete these things before transfer can be lodged.
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He dropped the price by a whole R10k?

How much is the property worth if I may ask?
 
ToxicBunny said:
He dropped the price by a whole R10k?

How much is the property worth if I may ask?
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It's a flat, listed for R550k.
Originally listed for R580k and he dropped it for a quicker sale I guess.
That is about the region for flats in this complex.
We settled on R540k.
 
R10k? on that price.. He can come again in my books... thats not a significant drop at all, and definitely not enough to make me even contemplate paying for repairs to the property outside of EXACTLY what was specified in the OTP.
 
ToxicBunny said:
R10k? on that price.. He can come again in my books... thats not a significant drop at all, and definitely not enough to make me even contemplate paying for repairs to the property outside of EXACTLY what was specified in the OTP.
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Thanks. This is my stance as well.
I'm new to this so the help of more experienced heads is much appreciated.
 
Its not necessarily about experience (although it helps).

You have a contract which has clauses... you follow them to the letter. If the seller gets cold feet after the fact, you hold him to the contract he signed.
 
ToxicBunny said:
R10k? on that price.. He can come again in my books... thats not a significant drop at all, and definitely not enough to make me even contemplate paying for repairs to the property outside of EXACTLY what was specified in the OTP.
Click to expand...

+1!
 
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