Offer to purchase question

Speedster said:
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.
Click to expand...
Thank you. Won't be making that mistake again.
 
A few weeks back I posted a question about a friend want to buy his parents house, on the cheapest possible way.

Alot of you mentioned the R100k donation restriction per year.

So last night I visited him again and the topic came up.

To my surprise the attorneys he used did something I never heard of. Changing the owner details as in “living estate (boedel)”. It cost R6500 for R1.5kk only.

My reply was, once it registered, show me the legal side’s invoice, as I never heard of it.

And if it works out, great for him! A “bargain” of note.
 
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...
I made the same mistake, but your time was at least half what I put down. Lesson learnt, never give too much time on an OTP. Next day CoB is the way to go. At least that way the seller can come with a counter-offer if they want to discuss with you.
 
Just out of curiosity if you put down an offer and you have been accepted as a back-up offer and the first offer has 30 days to get a bond, no automatic extension and on day 31 the first offer only has an Approval in Principal, No Valuation and no Bond.

What options do you have, if the agent is insisting on giving the first applicants an extension of a day or two is that legal, can I take legal action if I really want the property?
 
Last edited:
Usually the option for extension is in the OTP and can be activated/requested when needed.

We actually did it when we put in our offer and due to backlogs the banks took a bit longer to respond and get back with quotes.
On advice from the guys here we requested a week's extension on getting our bond in place. It was granted by the agent and sellers. Turns out it was never needed because we got our preferred deal sorted with a day to spare. But we played it safe and were thankful for the option.

I don't think there is anything you can do except wait and see if the other party gets there bond sorted.
 
Tjoker said:
How soon after your property has been registered in your name can one apply for extra money to do some renovations?
Click to expand...
As far as I understand, you need to pay your bond off a bit (the actual capital, not the interest). Otherwise you need to take out an additional loan and what would cost a lot more than refinancing an existing bond.
 
What recourse does the buyer have if there are issues with electrical compliance certificate?

In my case, there was no mention of the pool pump or sub-distribution board at the pool on the COC. Also, the sub-distribution board is wired into the 20A breaker for the plugs in the house. I'm no electrician but none of this sounds right?
 
Napalm2880 said:
What recourse does the buyer have if there are issues with electrical compliance certificate?

In my case, there was no mention of the pool pump or sub-distribution board at the pool on the COC. Also, the sub-distribution board is wired into the 20A breaker for the plugs in the house. I'm no electrician but none of this sounds right?
Click to expand...

Get the guys out who issued the COC I would say
 
APoc184 said:
Usually the option for extension is in the OTP and can be activated/requested when needed.

We actually did it when we put in our offer and due to backlogs the banks took a bit longer to respond and get back with quotes.
On advice from the guys here we requested a week's extension on getting our bond in place. It was granted by the agent and sellers. Turns out it was never needed because we got our preferred deal sorted with a day to spare. But we played it safe and were thankful for the option.

I don't think there is anything you can do except wait and see if the other party gets there bond sorted.
Click to expand...
Thank you for the feedback, I completely understand but I am just wandering, would it have been legal/ethical for the seller and agent to extend your contract if there was a back-up offer, an there are no provisions for contract extension in your OTP.
 
marysms said:
Thank you for the feedback, I completely understand but I am just wandering, would it have been legal/ethical for the seller and agent to extend your contract if there was a back-up offer, an there are no provisions for contract extension in your OTP.
Click to expand...

I completely understand where you are coming from. And I would feel the same if I had an offer in on a house and I know for a fact that I qualify and all my boxes are ticked already. Frustrating to say the least.

But we have seen in this thread that ethical and estate agent very rarely go hand in hand. Who knows if the agent is forthcoming with the sellers about your prospects or whether the other offer legitimately has reason to extend their time to get bond approval or of the agent.

Good luck with your wait.
 
zerocool2009 said:
A few weeks back I posted a question about a friend want to buy his parents house, on the cheapest possible way.

Alot of you mentioned the R100k donation restriction per year.

So last night I visited him again and the topic came up.

To my surprise the attorneys he used did something I never heard of. Changing the owner details as in “living estate (boedel)”. It cost R6500 for R1.5kk only.

My reply was, once it registered, show me the legal side’s invoice, as I never heard of it.

And if it works out, great for him! A “bargain” of note.
Click to expand...
Most probably the parents are registering a usufruct over the house.
 
First time buyer.
OTP accepted.
Bond originator used.
Best offer from StandardBank at 4.977% 240months if I bank with them. Couldn't believe this. I ended up staying with FNB who gave me just over 5% (I did all my calculations)
60% Bond, I've been preparing for this for the last 10 years.

Now the waiting begins.
 
Last edited:
Zuner said:
First time buyer.
OTP accepted.
Bond originator used.
Best offer from Nedbank at 4.96% 240months if I bank with them. Couldn't believe this. I ended up staying with FNB who gave me just over 5% (I did all my calculations)
60% Bond, I've been preparing for this for the last 10 years.

Now the waiting begins.
Click to expand...
Congrats, That a really good rate. Sure, lower risk since 60% bond, but still a really good rate.
 
zerocool2009 said:
Get the guys out who issued the COC I would say
Click to expand...
I asked them to fix it, they said they would. I left for work and when I got back, it looks as though they simply changed the blown lightbulbs and left.

The lawyers sent me a copy of the COC and lodged with the council before they had even completed the work. :X3:
 
zerocool2009 said:
A few weeks back I posted a question about a friend want to buy his parents house, on the cheapest possible way.

Alot of you mentioned the R100k donation restriction per year.

So last night I visited him again and the topic came up.

To my surprise the attorneys he used did something I never heard of. Changing the owner details as in “living estate (boedel)”. It cost R6500 for R1.5kk only.

My reply was, once it registered, show me the legal side’s invoice, as I never heard of it.

And if it works out, great for him! A “bargain” of note.
Click to expand...
An interest free loan at arms length is what I believe you're looking for.

Don't go the usufruct route because if you ever decide to sell the house then it becomes a big problem tax wise. I stand corrected but I think the donations tax is then calculated based on the future value of the house - if the parent were to live out the remainder of their days there. The way I understand it, the parent also can't just give up usufruct once it's been granted.
 
Quick questions about tenant calling a plumber. So a geyser burst and the tenant didn’t have water. She called the estate manager why there isn’t water. Then the estate manager called the plumber. In the interim she called me to say the geyser bursted. So I called my plumber. The estate plumber came and phoned me thinking it was my plumber and I asked for a quote. The next day my plumber came and gave me a quote. So my plumber repaired everything. Now the estate plumber sends me an invoice. Think they just closed geyser for R700 bucks. So who pays for it. The tenant says she didn’t call the plumber. She just asked the estate manager why there isn’t water. The estate never phoned me for approval that’s why I sent my own plumber.
 
beefymoocow said:
Quick questions about tenant calling a plumber. So a geyser burst and the tenant didn’t have water. She called the estate manager why there isn’t water. Then the estate manager called the plumber. In the interim she called me to say the geyser bursted. So I called my plumber. The estate plumber came and phoned me thinking it was my plumber and I asked for a quote. The next day my plumber came and gave me a quote. So my plumber repaired everything. Now the estate plumber sends me an invoice. Think they just closed geyser for R700 bucks. So who pays for it. The tenant says she didn’t call the plumber. She just asked the estate manager why there isn’t water. The estate never phoned me for approval that’s why I sent my own plumber.
Click to expand...

If your insurance is wakey.. its an insurance claim. Only a small excess is required.

What was wrong? Element/thermostat? I saw the burst geyser part (by the way).

All and all, estate management service!

I can also say this, have one line of communication. Plumbers are plumbers! No job for free!

I would say the BC must settle it.
 
Last edited:
zerocool2009 said:
If your insurance is wakey.. its an insurance claim. Only a small excess is required.

What was wrong? Element/thermostat? I saw the burst geyser part (by the way).

All and all, estate management service!

I can also say this, have one line of communication. Plumbers are plumbers! No job for free
Click to expand...

I can claim from my insurance company for my plumber. Since they replaced the geyser. The estate plumber hardly did any work. They just switched off the water. I didn’t even know about the estate plumber. Until now.

I had one line of communication. I can’t be aware if the tenant phoned the estate manager. But the thing is estate manager needs to confirm with the landlord. What’s stopping someone outside phoning an estate and pretending to be a resident of a estate.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X