Offer to purchase question

[staunchy20]

Finally bond has been registered. Busy weekend ahead with packing and cleaning.

Only sad part is old place fibre was higher speed at lower cost compared to at the new place and place is on city power power grid not CoCT other than that happy times.

 

[Dark Agent]

How to one get proof that I own the unit after it is registered? I need to provide proof I own the unit to release the fibre from old tenants.

 

[newby_investor]

How to one get proof that I own the unit after it is registered? I need to provide proof I own the unit to release the fibre from old tenants.

In a complex / body corporate? The managing agent should be able to provide you with a letter.

 

[Marsie27]

Finally bond has been registered. Busy weekend ahead with packing and cleaning.

Only sad part is old place fibre was higher speed at lower cost compared to at the new place and place is on city power power grid not CoCT other than that happy times.

City power? It's either CoCT (City of Cape Town) or Eskom (in the outlying areas}. Unless you don't mean CoCT?

 

[RonSwanson]

Agents put clauses in their version of the OTP that suit them. However, the agent has a contract with the seller only, and no contract with the buyer. The OTP is an offer from the buyer to the seller, and if the seller accepts it, it becomes the contract between the seller and the buyer, a contract to which is the agent is not a party.

When a buyer wants to make an offer, there is no obligation whatsoever to use the agent's OTP, and that OTP it is not, as some agents would have one believe, "just the standard thing". You can add and subtract any clauses freely. A hopeful buyer must specify the property properly, the name of the owner their own name, the price offered and the desired date of the sale. There are good, sensible reasons to have many other clauses, but they are not essential by law. Most important is to read and understand every clause, including what could go wrong if this aspect of the sale were not also specified in the OTP.

There is a possibility that if your OTP has had clauses struck from the agent's version, or is completely different, the agent may refuse to pass it on to the seller. That's a pity, if you really want to buy the property, but if, on the other hand, you're willing to buy only with your own version of the OTP, then an unwilling agent is a sign that something's not going to go well. If you have the details of the seller, you could send them your OTP directly, not through the agent, and see what happens.

The agent is required to present every offer to the seller, it's not an option.

 

[RonSwanson]

Agent now trying to not add the approved plans for the property as a suspensive condition to the OTP after I asked him to.
Agent said that the seller does not have copies of the approved plans, and that they will try and get it at the municipality.
if there are no plans then I can lower the offer and do the plans myself.

Sounds not legit, what happens if there are structures that do not comply and do not get approved?
Can I even legally occupy the property if there are no approved plans at the municipality?
would I require some occupancy certificate?

There is also a bit of a concern with a structure around pool, and I did state to get a inspector
but the agent just put his own wording and not the specific wording that I sent, which is also not as clear regarding the outcome
of the inspection and when the inspection should happen.

Then why sign it? I wouldn't.

 

[RonSwanson]

So legally there is no way out of that clause, they are just making you aware of this fact.
Once an unconditional offer is accepted they will stop marketing the property and will lose any other buyers that

Just confirm with the agent what you can and can't change - remember its a negotiation so its fine to make demands they must just be valid.
Don't muck around though its just going to p1ss people off and when there is big money involved there are big lawyers invovled.

I don't agree. The seller is entitled to market the place until guarantees are delivered, or even until date of transfer.

 

[RonSwanson]

They can probably say its an invalid offer and its not legal to present something like that
Like if you haven't signed it then it probably can't be presented.

They can say whatever they want. If the alterations are reasonable, then they are obligated to present it. If it really is so bad, then they can advise the seller not to accept it.

 

[RonSwanson]

Well the thing is that the agent has a contract with the owner so you are stepping in to that contract when you make an offer. While the mandate is in place you wont make a sale on that property without the agent getting money. They are just informing you of this when you make the OTP

I don't agree. The mandate to sell is between agent and seller. I have crossed that nonsense out of an OTP before, the agent cannot force me to become party to something already agreed and concluded, that's ludicrous.

 

[RonSwanson]

How to one get proof that I own the unit after it is registered? I need to provide proof I own the unit to release the fibre from old tenants.

The conveyancing attorney should have provided you with one, it's what you paid for...

 

[newby_investor]

I don't agree. The seller is entitled to market the place until guarantees are delivered, or even until date of transfer.

Provided that there's a continued marketing clause, isn't it? I removed that from mine.

 

[RonSwanson]

Provided that there's a continued marketing clause, isn't it? I removed that from mine.

He can do so with or without it. It's a good clause to have as a seller, especially in a poor overheated economic climate where banks are refusing loans based on too much debt. Putting it in the OTP just makes the buyer aware, so as not to receive frantic phonecalls when they see the same house on show after they have acceptance of the OTP.

 

[staunchy20]

City power? It's either CoCT (City of Cape Town) or Eskom (in the outlying areas}. Unless you don't mean CoCT?

Thanks for correcting me. I meant eskom supplied. Property falls just outside gordons bay which is now under CoCT supplied.

 

[zerocool2009]

How to one get proof that I own the unit after it is registered? I need to provide proof I own the unit to release the fibre from old tenants.

Ask the attorneys for the confirmation letter.

 

[Marsie27]

Thanks for correcting me. I meant eskom supplied. Property falls just outside gordons bay which is now under CoCT supplied.

Ah right - yes a pity, you then bear the full brunt of load-shedding.

 

[droidx]

I don't agree. The mandate to sell is between agent and seller. I have crossed that nonsense out of an OTP before, the agent cannot force me to become party to something already agreed and concluded, that's ludicrous.

I have done the same with a clause that stated buyer and seller and jointly liable for agents commission should the sale not go ahead for any reason, paraphrased of course.

I deleted it and informed the agent that I'm not a party to the agreement on commission and therefore cannot be liable. The agent checked this among other amendments and did not have an issue.

 

[rietrot]

Agent now trying to not add the approved plans for the property as a suspensive condition to the OTP after I asked him to.
Agent said that the seller does not have copies of the approved plans, and that they will try and get it at the municipality.
if there are no plans then I can lower the offer and do the plans myself.

Sounds not legit, what happens if there are structures that do not comply and do not get approved?
Can I even legally occupy the property if there are no approved plans at the municipality?
would I require some occupancy certificate?

There is also a bit of a concern with a structure around pool, and I did state to get a inspector
but the agent just put his own wording and not the specific wording that I sent, which is also not as clear regarding the outcome
of the inspection and when the inspection should happen.

Something like 70% of all alterations done to houses don't have the correct plans in place. It will only become a problem if you decide to burn the house down. The the insurance might not rebuild the stuff not on plan.

People make way too big of a deal about it. Except if you can see something is obviously dodgy, build too close to boundary walls or somewhere where it might be a problem.

 

[Nerfherder]

I don't agree. The seller is entitled to market the place until guarantees are delivered, or even until date of transfer.

Yes, that's what an unconditional offer is.

If you still need a bond then that's a condition.

 

[Nerfherder]

Something like 70% of all alterations done to houses don't have the correct plans in place. It will only become a problem if you decide to burn the house down. The the insurance might not rebuild the stuff not on plan.

People make way too big of a deal about it. Except if you can see something is obviously dodgy, build too close to boundary walls or somewhere where it might be a problem.

So it looks like its now a condition of the sale to have valid plans.

I don't know when this happened but when I bought my current house it wasn't the case and the owner at the time didn't build internal walls according to the pans ha lodged.
Now that I'm selling its a problem for me. I think in CT is a problem with all the old houses and servitudes etc... but the agent basically told me that I must have valid plans to sell the property.

 

[Nerfherder]

I have done the same with a clause that stated buyer and seller and jointly liable for agents commission should the sale not go ahead for any reason, paraphrased of course.

I deleted it and informed the agent that I'm not a party to the agreement on commission and therefore cannot be liable. The agent checked this among other amendments and did not have an issue.

I'd like to see someone test this in court though.

Be sure that with these big agencies they will take you to court over a failed sale - certainly if you just withdraw the offer at a late stage.