Offer to purchase question

Tjoker said:
FNB just came back with a 100% bond quote which includes 7.75%(8.0% less 0.25% because I bank with them) interest and a 240-month term. I am surprised by the rate and term as other people here and around me is getting 6.5% or better, and over 30 years.
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Your interest rate is influenced by your credit record, and how much bond you take. If you only needed say a 90% or 80% bond, then it would come down drastically. Mine was ~6%, but I only needed 70% of the price of the house.

The term, i.e. 30 or 20 years, doesn't seem to have much of an effect, as far as I can see.
 
newby_investor said:
Your interest rate is influenced by your credit record, and how much bond you take. If you only needed say a 90% or 80% bond, then it would come down drastically. Mine was ~6%, but I only needed 70% of the price of the house.

The term, i.e. 30 or 20 years, doesn't seem to have much of an effect, as far as I can see.
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My Credit Score is 692 at the moment, but I do need a 100% bond(I can put down a R100 k deposit if need be). So I see your point.

20 to 30 years bond term makes an R2k cash flow difference per month on my amount.
 
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Tjoker said:
20 to 30 years bond term makes an R2k cash flow difference per month on my amount.
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Yeah, I didn't make that quite clear. A 30 year bond will have lower monthly payments but it won't make a difference to the interest rate.

I'm planning to pay mine off in about 8-10 years so the period means little to me.
 
We just got word that we are nowhere near ready to prep as there is still documents outstanding. Occupancy certificate is MIA, the SG diagrams and plans have been pending for well over two months now and it's taken the attorneys more than three weeks to have power of attorney documents drawn up.

Not to mention my phone calls and emails go unanswered when I try follow up. This is such a stark contrast to the previous time we purchased which took little more than six weeks from the signed OTP to us getting the keys. We're currently on week 13 or 14 of this nightmare and there's no sign of things moving any time soon:(
 
PhireSide said:
We just got word that we are nowhere near ready to prep as there is still documents outstanding. Occupancy certificate is MIA, the SG diagrams and plans have been pending for well over two months now and it's taken the attorneys more than three weeks to have power of attorney documents drawn up.

Not to mention my phone calls and emails go unanswered when I try follow up. This is such a stark contrast to the previous time we purchased which took little more than six weeks from the signed OTP to us getting the keys. We're currently on week 13 or 14 of this nightmare and there's no sign of things moving any time soon:(
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Sorry to hear about this. Some transactions are super smooth, others again a bad nappy (as in a disaster) !
 
zerocool2009 said:
Sorry to hear about this. Some transactions are super smooth, others again a bad nappy (as in a disaster) !
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It is what it is I guess. I think we pulled the short straw in terms of this house - the sellers are based overseas, the property is on a subdivided plot and the timing was just awful to begin with.

We take occupation in little more than two weeks at least (we found someone to rent out current pozzie so we just about break even on the occ. Rent) so fingers crossed that this process is nearly at an end:coffee:
 
Just curious with regards to occupational rent:
Can you get the seller to fix things the same way a tenant and landlord would do?
 
Fcon_Vpro said:
Just curious with regards to occupational rent:
Can you get the seller to fix things the same way a tenant and landlord would do?
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Yes, but to an extent. The seller (i.e. effective landlord) has an obligation to keep the house in a reasonable, habitable state. And anything that would be covered by certificates of compliance is for the account of the seller anyway. So in my case, the seller had to fix a couple of leaking toilets.

If it comes to a dispute, the conveyancing attorney would be able to advise what the seller's legal obligations are. You don't need to state in the OTP that the seller must maintain the house in a certain state until transfer, it's a given, but the obligation may be transferred to the buyer by a clause in the contract. Though this is unusual.

OTOH, if you as the buyer (and temporary tenant) were to break something, then it would be on you. As per normal.
 
Hello

First time buyer, Just going through this thread and will take some time to get read everything about 20 pages in,
so thanks for all the info so far.
Just wondering if I can get some advice.

I came across a property which I really want, estate agent said the the sellers has accepted an offer from
a buyer that's living in a different province, the OTP they accepted had a clause that the buyer must first sell his
property, now the market where the buyer is selling is either pretty slow or maybe he is asking the wrong price,
so they have waited a few weeks now(maybe 6 or 7 weeks not sure exactly).

Estate agents have started showing the house again to buyers(probably to pressure the current buyer into moving his ass).

I don't know all the finer details of the OTP but how long could they realistically wait for the buyer to sell his property,
is there any sort of expiry date on a OTP once they accepted it, or should an expiry date be defined by the seller.

want to go have another look, but not sure if I am wasting my time,
that the seller will have to wait untill the buyers property gets sold.
 
Colsuldel said:
Hello

First time buyer, Just going through this thread and will take some time to get read everything about 20 pages in,
so thanks for all the info so far.
Just wondering if I can get some advice.

I came across a property which I really want, estate agent said the the sellers has accepted an offer from
a buyer that's living in a different province, the OTP they accepted had a clause that the buyer must first sell his
property, now the market where the buyer is selling is either pretty slow or maybe he is asking the wrong price,
so they have waited a few weeks now(maybe 6 or 7 weeks not sure exactly).

Estate agents have started showing the house again to buyers(probably to pressure the current buyer into moving his ass).

I don't know all the finer details of the OTP but how long could they realistically wait for the buyer to sell his property,
is there any sort of expiry date on a OTP once they accepted it, or should an expiry date be defined by the seller.

want to go have another look, but not sure if I am wasting my time,
that the seller will have to wait untill the buyers property gets sold.
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Usually there is a continued marketing clause, where the seller can continue marketing until the suspensive conditions are all fulfilled, second to that, the buyer usually gets a time frame in which to fulfil suspensive conditions.
The agent should have clarity on the situation, either the seller can accept alternative offers or a definite date at which the property would become available again.
 
droidx said:
Usually there is a continued marketing clause, where the seller can continue marketing until the suspensive conditions are all fulfilled, second to that, the buyer usually gets a time frame in which to fulfil suspensive conditions.
The agent should have clarity on the situation, either the seller can accept alternative offers or a definite date at which the property would become available again.
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Thanks alot droidx,
agent is showing the house on Saturday to another couple, managed to get an appointment after them,
will try and get some more info from the agent on these suspensive conditions.
 
Colsuldel said:
Thanks alot droidx,
agent is showing the house on Saturday to another couple, managed to get an appointment after them,
will try and get some more info from the agent on these suspensive conditions.
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Basically, if you can get the money first, then the seller can go with your offer over the other one.

If the clause is there. It's normally standard in the template that the estate agent will supply. But sometimes it gets crossed out. The agent will know.
 
Colsuldel said:
Thanks alot droidx,
agent is showing the house on Saturday to another couple, managed to get an appointment after them,
will try and get some more info from the agent on these suspensive conditions.
Click to expand...
Agent wouldn't be wasting their time showing the place to prospective buyers if there wasn't a clear way to supercede the current OTP. Most OTPs nowadays have a clause whereby the seller can sell to a second buyer if the second buyer has their financing sorted before the first.
 
Hey guys

Signed an OTP for a property on Monday 8 Feb. Agent said she will only present to the sellers on Friday (tomorrow 12 Feb) and indicated an expiry date on the OTP for tomorrow 12 Feb, which I stupidly accepted, instead of stipulating an earlier date. Has this happened to anyone before? We suspect that the agent may be using our offer (we were among the first to view, and the first to submit an OTP) to generate higher offers. I know that, legally, an agent has to submit any offers made on a property, but is there a time limit in which they should/have to do so?
 
ForgetfulLegend20244 said:
Hey guys

Signed an OTP for a property on Monday 8 Feb. Agent said she will only present to the sellers on Friday (tomorrow 12 Feb) and indicated an expiry date on the OTP for tomorrow 12 Feb, which I stupidly accepted, instead of stipulating an earlier date. Has this happened to anyone before? We suspect that the agent may be using our offer (we were among the first to view, and the first to submit an OTP) to generate higher offers. I know that, legally, an agent has to submit any offers made on a property, but is there a time limit in which they should/have to do so?
Click to expand...
As the buyer you can decide how long you want your offer to be valid for. You've specified a date in the OTP which is now binding. Next time (if this one isn't accepted) let the OTP be valid until COB the next day, that is more than enough time for the seller to make a decision.
 
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