Offer to purchase question

zerocool2009 said:
I quickly confirmed it.... FNB wont accept any applications if you dont bank with them, and are self employed.
Click to expand...
Ok. Gonna try Absa first and speak to accountants in the mean time. We found a possible stunning place to rent, depending on some factors. I think a week is too short to look at properties and being far away it might be stressful as well. So unless we see something that takes our breaths and pockets away, we will move down in a month or two and then take our time.

Agents so far have been accommodating with regards to rentals and said they will hold for us until end of week.

In Richards Bay it is a cesspit of a hell hole as far as renting goes.
 
RedViking said:
Ok. Gonna try Absa first and speak to accountants in the mean time. We found a possible stunning place to rent, depending on some factors. I think a week is too short to look at properties and being far away it might be stressful as well. So unless we see something that takes our breaths and pockets away, we will move down in a month or two and then take our time.

Agents so far have been accommodating with regards to rentals and said they will hold for us until end of week.

In Richards Bay it is a cesspit of a hell hole as far as renting goes.
Click to expand...

Banks wants full business! Fnb would consider I think if you move banks!

Banks dont want to be used! Seriously
 
3WA said:
@azbob isn't married in property. No woman can control him.
Click to expand...

Damn right. I’m in control.

images
 
Received an OTP to sign from the agent for a unit I want to buy in a complex.

One section said the purchaser acknowledged they'd received an Immovable Property Report, which I had not. Also said the unit had a garage, I asked the agent to stipulate "double garage". Had to insist on the Financials and still don't know whether generators are allowed in the complex.

My advice - read several times before signing.
 
maumau said:
Received an OTP to sign from the agent for a unit I want to buy in a complex.

One section said the purchaser acknowledged they'd received an Immovable Property Report, which I had not. Also said the unit had a garage, I asked the agent to stipulate "double garage". Had to insist on the Financials and still don't know whether generators are allowed in the complex.

My advice - read several times before signing.
Click to expand...

Make sure plans match!
 
maumau said:
Received an OTP to sign from the agent for a unit I want to buy in a complex.

One section said the purchaser acknowledged they'd received an Immovable Property Report, which I had not. Also said the unit had a garage, I asked the agent to stipulate "double garage". Had to insist on the Financials and still don't know whether generators are allowed in the complex.

My advice - read several times before signing.
Click to expand...
Sectional title complexes are a whole different ballgame. Lots of hard work before submitting an OTP.
You will need to start with requesting, scrutinising and formulating questions on:
  • The latest (CSOS stamped and approved) Conduct Rules;
    • here you will find the answers to your genny questions, amongst many others (like pets).
    • ask the managing Agent whether there are any anticipated Conduct Rule changes or pending Conduct Rule changes at CSOS, if so, request copy of the drafts.
  • The latest Management Rules
    • in some instances these are changed from the honourable minister's suggested ones in the Acts and Regs, you will want to know of any special PQs
    • here you will also find answers to your questions on the maintenance of "exclusive use" areas and if they deviate from the original intentions of the Regs..
  • The signed minutes of all general meetings (AGMs and SGMs) for the past (at least) 3 years, including the meeting packs;
    • these are helpful in determining what the major issues are in the complex, and how well the trustees have managed things, whether the Admin and MR&R funds and contributions are sufficient, what the bad debts situation is, etc. etc.
    • pay special attention to the maintenance: The MR&R plan and how they stick to it, how many special levies (deviations from approved budgets)
    • Set aside one week to do analysis, and Q&A at least another week.
  • The latest Sectional Title Plan, signed off by the Surveyor General's surveyor;
    • this is critical in determining what exactly you are buying, what is considered part of your section, exclusive use areas (if any) and who pays maintenance for what.
    • pay special attention to parking and garages
  • The past years' minutes of all Trustee meetings;
    • this gives you valuable insight into how regularly the trustees meet, how well they are performing (are the two budgets sufficient), and most important: the pressing / urgent issues in the complex.
  • Any current or anticipated special levies?
    • this gives you an idea of how well the MR&R plan is implemented (if at all) and upcoming special levies
When you are happy with doing your homework on this, you will have a better idea of what the property is worth, and translate that into an offer.
 
RonSwanson said:
Sectional title complexes are a whole different ballgame. Lots of hard work before submitting an OTP.
You will need to start with requesting, scrutinising and formulating questions on:
  • The latest (CSOS stamped and approved) Conduct Rules;
    • here you will find the answers to your genny questions, amongst many others (like pets).
    • ask the managing Agent whether there are any anticipated Conduct Rule changes or pending Conduct Rule changes at CSOS, if so, request copy of the drafts.
  • The latest Management Rules
    • in some instances these are changed from the honourable minister's suggested ones in the Acts and Regs, you will want to know of any special PQs
    • here you will also find answers to your questions on the maintenance of "exclusive use" areas and if they deviate from the original intentions of the Regs..
  • The signed minutes of all general meetings (AGMs and SGMs) for the past (at least) 3 years, including the meeting packs;
    • these are helpful in determining what the major issues are in the complex, and how well the trustees have managed things, whether the Admin and MR&R funds and contributions are sufficient, what the bad debts situation is, etc. etc.
    • pay special attention to the maintenance: The MR&R plan and how they stick to it, how many special levies (deviations from approved budgets)
    • Set aside one week to do analysis, and Q&A at least another week.
  • The latest Sectional Title Plan, signed off by the Surveyor General's surveyor;
    • this is critical in determining what exactly you are buying, what is considered part of your section, exclusive use areas (if any) and who pays maintenance for what.
    • pay special attention to parking and garages
  • The past years' minutes of all Trustee meetings;
    • this gives you valuable insight into how regularly the trustees meet, how well they are performing (are the two budgets sufficient), and most important: the pressing / urgent issues in the complex.
  • Any current or anticipated special levies?
    • this gives you an idea of how well the MR&R plan is implemented (if at all) and upcoming special levies
When you are happy with doing your homework on this, you will have a better idea of what the property is worth, and translate that into an offer.
Click to expand...

Awesome advice, thank you. This thread should be stickied.

Without detail like this sellers and buyers don't know what's going on. Estate Agents are slack and @RedViking even had to ask how long a buyer has to complete an OTP :eek:.
 
maumau said:
Awesome advice, thank you. This thread should be stickied.

Without detail like this sellers and buyers don't know what's going on. Estate Agents are slack and @RedViking even had to ask how long a buyer has to complete an OTP :eek:.
Click to expand...

Just buy direct! It aint difficult! And it will save both parties fees/costs
 
maumau said:
Awesome advice, thank you. This thread should be stickied.

Without detail like this sellers and buyers don't know what's going on. Estate Agents are slack and @RedViking even had to ask how long a buyer has to complete an OTP :eek:.
Click to expand...
Ah, so that's where that question comes from! Now I understand.:D
 
maumau said:
Awesome advice, thank you. This thread should be stickied.

Without detail like this sellers and buyers don't know what's going on. Estate Agents are slack and @RedViking even had to ask how long a buyer has to complete an OTP :eek:.
Click to expand...
TBH, when I was buying sectional title properties, I cheated. I looked at areas that I was interested in, tabulated the ST complexes, and skim-read the financials and conduct rules of 90% of them. This put me in a position to shortlist complexes that were well run and unambiguously good buys. I then focussed on these and did in-depth analysis. It cut the workload down, and I found only 2 out of around 37 that were worthy. I then set about identifying good ST properties in these two complexes.
 
RonSwanson said:
TBH, when I was buying sectional title properties, I cheated. I looked at areas that I was interested in, tabulated the ST complexes, and skim-read the financials and conduct rules of 90% of them. This put me in a position to shortlist complexes that were well run and unambiguously good buys. I then focussed on these and did in-depth analysis. It cut the workload down, and I found only 2 out of around 37 that were worthy. I then set about identifying good ST properties in these two complexes.
Click to expand...
1653508764208.png
 
RonSwanson said:
TBH, when I was buying sectional title properties, I cheated. I looked at areas that I was interested in, tabulated the ST complexes, and skim-read the financials and conduct rules of 90% of them. This put me in a position to shortlist complexes that were well run and unambiguously good buys. I then focussed on these and did in-depth analysis. It cut the workload down, and I found only 2 out of around 37 that were worthy. I then set about identifying good ST properties in these two complexes.
Click to expand...

WOW, 2 out of 37 isn't great.

That must have saved you a lot of time but I have to ask though, how did you get hold of the financials?
 
maumau said:
WOW, 2 out of 37 isn't great.

That must have saved you a lot of time but I have to ask though, how did you get hold of the financials?
Click to expand...
It's not that difficult, see a for sale ad, contact the agent, view the property and then request the information from the agent. In some cases I didn't even bother doing the last step, just viewing the inside of the complex was enough.
 
RedViking said:
I have a bunch of questions as I am now seriously looking and ready to buy (assuming the bank is as well) . I can't remember if some of them I already asked and were answered as I bookmarked a 1000 posts and my inbox is a mess /facepalm

1. Chances of getting approval.

I work for myself (sole proprietor), last ±15 years freelancing. I don't have a registered company or entity (in SA) and just send a monthly invoice to the foreign company and then get paid. So the only proof of my income is my bank statements and the tax I pay (Provisional IRP6 + ITR12). Its super straightforward as I work from home / Internet. Will 2 or 3 years bank statements be good enough?

Credit score 670+ or 10/10 with Absa.

Pre-approval looks great with Absa, but it does not require to submit any documents.

2. I see a house I like and want to buy. What will the very first email look like?

"Dear Agent, I would like to put in an offer for the property at 66 Viking Drive, Valhalla of RXKK subject to bond approval and a signed OTP by both parties. Please supply the OTP before 17:00 today."

Will they then send me an OTP?

3. How much time do you have to read through the OTP and sign? I will need time to go through the OTP, ask questions here, possibly send to my lawyer, this will probably take a day or two. Will they allow time for all of this or is it like the rental market, first signed, first served?

4. What are the common special points/clauses/conditions which should be added to the OTP?

a. Subject to bond approval and with a max. prime rate or prime minus + 105% loan.
b. Subject to approved up-to-date and current building plans of which a copy has been supplied to the buyer.
c. All rates and taxes are up to date and Owner(s) / Seller's responsibility.
d. Property is vacant on registration and there will be no tenants or other lease in place, otherwise this will invalidate the OTP, registration may not be delayed, and owner will be held liable for any damages, fees or legal proceedings.
e. Seller/Owner is responsible for insurance, rates & taxes (including water and electricity) and maintenance until the date of transfer. Whether the property is occupied by the seller, unoccupied, or even in the event of the purchaser taking occupation before transfer date and paying occupational rent.

5. (Complex) Any Complex or Estate specific clauses to OTP?


I'll have more questions later most probably.
Click to expand...

If you want to do a proper home inspection by a home inspector, then also add in a clause like "subject to a favorable home inspection to be completed with in x days of signing the offer to purchase".
 
maumau said:
WOW, 2 out of 37 isn't great.

That must have saved you a lot of time but I have to ask though, how did you get hold of the financials?
Click to expand...

Its not difficult! Just ask!

In some cases the seller keeps tab of all documentation (and share historical agm info/data)
 
For the place I bought, I checked the latest financials, rules and auditors report, but I didn't think to check the meeting minutes.

Oh well, hope there's nothing major the issue.

Now that I've bought, who do I request the minutes from? The owner is the chairman of the trustees, maybe them?
 
derp90 said:
For the place I bought, I checked the latest financials, rules and auditors report, but I didn't think to check the meeting minutes.

Oh well, hope there's nothing major the issue.

Now that I've bought, who do I request the minutes from? The owner is the chairman of the trustees, maybe them?
Click to expand...
Yes the trustees or the managing agent - they should also have copies on record.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X