Offer to purchase question

[Tman543]

Does this look right? It's the rates and levy I'm not sure about on the OTP it said the seller would pay rates and levies up until transfer is done View attachment 1098455

Lotsa extra crap that attorneys want to charge. WTF is sundry disbursements? You definitely should not be paying rates/levies upfront. (Depends actually what's in the OTP)
Is this an estate complex? Rates are higher than levies which normally are the other way around.

 

[Big-Mac]

Lotsa extra crap that attorneys want to charge. WTF is sundry disbursements? You definitely should not be paying rates/levies upfront. (Depends actually what's in the OTP)
Is this an estate complex? Rates are higher than levies which normally are the other way around.

Lol i have no idea, the rates are for 3 months and levies 1 month, yes it's a house within a complex

 

[Sinbad]

Still waiting for my mortgage approval

Quite a heavy process on this side. The conveyancers have to do all sorts of checks before they give the go-ahead - including checking all plans/permissions, drainage, mining, flooding, future developments in the area, and even church chancel maintenance obligations that the new property owner may have...

And it came through today!!!!

 

[Fcon_Vpro]

Does this look right? It's the rates and levy I'm not sure about on the OTP it said the seller would pay rates and levies up until transfer is done View attachment 1098455

With sectional title you usually pay a deposit for the levies. Not sure why exactly but remember it with my first purchase

 

[zerocool2009]

With sectional title you usually pay a deposit for the levies. Not sure why exactly but remember it with my first purchase

You pay a connection fee (if paid off plan). Charged by the developer, and you can ask that back if you sell.

 

[zerocool2009]

Does this look right? It's the rates and levy I'm not sure about on the OTP it said the seller would pay rates and levies up until transfer is done View attachment 1098455

My honest view, no clearance fees should be charged. Nothing is yet on your name!

 

[Big-Mac]

My honest view, no clearance fees should be charged. Nothing is yet on your name!

So what do i do?

 

[bokka1]

So what do i do?

They will calculate the levies pro-rata on date of registration, the attorneys are just covering themselves that they don't have to try and get money out of you after date of registration. If you paid too much they will reimburse you.

The disbursement charged by the Body Corporate to issue the clearance certificate is part of your costs.

I will only question items 3 and 7 on that invoice.

 

[zerocool2009]

So what do i do?

Tell the lawyers, please give you evidence that you signed for that charge... as clearance charges are for the seller!

If they come back with : “we hired a runner”! Reply, you are not in a rush!

What is it with lawyers charging buyers costs that must be on the sellers account!

 

[PhireSide]

And it came through today!!!!

Congrats!!! F*k, hard to believe that we signed OTP long before you even left for the UK and we are still awaiting transfer.

Must be nice to live in a modern country

Hope the rest of the process goes well and without any bumps.

 

[zerocool2009]

They will calculate the levies pro-rata on date of registration, the attorneys are just covering themselves that they don't have to try and get money out of you after date of registration. If you paid too much they will reimburse you.

The disbursement charged by the Body Corporate to issue the clearance certificate is part of your costs.

I will only question items 3 and 7 on that invoice.

I am a trustee. That clearance fee is paid by the seller, into the managing agents account.

 

[Sinbad]

Congrats!!! F*k, hard to believe that we signed OTP long before you even left for the UK and we are still awaiting transfer.

Must be nice to live in a modern country

Hope the rest of the process goes well and without any bumps.

Thanks

Still a way to go. Scheduled for completion (ie, transfer) on 31 August.

 

[The_Mowgs]

Thanks

Still a way to go. Scheduled for completion (ie, transfer) on 31 August.

Mine also. We are now best buds, if you so wish.

 

[Sinbad]

Mine also. We are now best buds, if you so wish.

Where'd you buy?

 

[The_Mowgs]

Where'd you buy?

Still in SA, Stellenberg area.

 

[bokka1]

I am a trustee. That clearance fee is paid by the seller, into the managing agents account.

I am a conveyancer, it is paid by the buyer if the contract states that the buyer pays costs.

Why would the buyer pay for the Municipal Clearance Certificate but not for the Levy Clearance Certificate?

 

[zerocool2009]

I am a conveyancer, it is paid by the buyer if the contract states that the buyer pays costs.

Why would the buyer pay for the Municipal Clearance Certificate but not for the Levy Clearance Certificate?

As I stated before... if the buyer pays for any clearance certificates.... they are taken for a ride

Seller should pay for municipal clearance, to verify he is up to date

Seller should pay for levy clearance, to confirm no outstanding money owed to anyone within the scheme

If the seller specifies it in the OTP, that the buyer should cover it! (I just laugh.... )

 

[RonSwanson]

What is a reasonable offer expiry period to specify as a buyer? 24 hours? Less? More?

Immediately. Every second that you give the seller after the offer's presentation means that he has a chance to accept another offer.
To be reasonable, it does need to give him some time. There are two things that the seller needs to establish: Your offer price, and your bona fides. Price is easy, bona fides a little less so, yet knowing most sellers, they generally tend focus on the former only (which is a pity).
So technically, how much time would be reasonable for someone's bona fides to be established? If it's a cash deal then not so much, the buyer either has the money or not, or a good enough track record to be granted a loan. If the offer is accompanied by a pre-approved cert, then even more proof of bona fides.

So to my own mind, a reasonable time would be 1 hour maximum. But it may depend on special circumstances.

 

[bokka1]

As I stated before... if the buyer pays for any clearance certificates.... they are taken for a ride

Seller should pay for municipal clearance, to verify he is up to date

Seller should pay for levy clearance, to confirm no outstanding money owed to anyone within the scheme

If the seller specifies it in the OTP, that the buyer should cover it! (I just laugh.... )

That is your warped opinion.

In reality the buyer pays everything incidental to the transfer.

Do you as a trustee insist on the seller paying?

In any case the question was if the costs are reasonable and I am sure the Conveyancer would have checked the OTP to see who pays for what.

 

[zerocool2009]

That is your warped opinion.

In reality the buyer pays everything incidental to the transfer.

Do you as a trustee insist on the seller paying?

In any case the question was if the costs are reasonable and I am sure the Conveyancer would have checked the OTP to see who pays for what.

I have bought a few properties in the last decade. And only in my last buy, the seller forced me to use their attorney, as the seller was family to them. And It was a shock I showed them the rules on billing

To answer you... clearance certificate issuing has zero to do with us as trustees, the managing agent makes the rules, as its just another way how to make renvue out of minimal work

I see this as, if you go shopping, do you pay for someone else’s groceries? No you dont.

I helped a few buyers before on this page. If you dont query, you will get billed for items on the invoice. But if you dont know... you just say yes.