Offer to purchase question

s898 said:
I put in an offer for a place and it was accepted. Since then I've noticed that there's a pakistani tuck shop about 500 meters from there. I wonder if this is a sign of deterioration of the area? I've noticed that whenever such a shop opens up in an area, it deteriorates.
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A bit late to do your homework. Why did you buy in an area you did not check first?

Anyways, that is why I would like to rent and live first in the Midlands for a year before I commit to a property.
 
derp90 said:
Nope, there was none specified in the OTP.
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That doesn't mean you are not obligated to pay occupational rent. Just because it's not in the contract this does not mean it's null. It's actually a worse position to be in since they can now dictate their own amount which you must agree to or they could stop you from taking occupation. Note to buyers, ALWAYS stipulate the occupational rent amount in the OTP.
 
The Darkness said:
That doesn't mean you are not obligated to pay occupational rent. Just because it's not in the contract this does not mean it's null. It's actually a worse position to be in since they can now dictate their own amount which you must agree to or they could stop you from taking occupation. Note to buyers, ALWAYS stipulate the occupational rent amount in the OTP.
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Or better: dont move in until its registered!
 
derp90 said:
Nope, there was none specified in the OTP.
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This just means they havent said how much you must pay.
People are awesome, until you bring in moola. Get a number, you wouldnt let someone crash in your place for free right?
Do you know how long the backlog is? which area if you dont mind
 
The Darkness said:
That doesn't mean you are not obligated to pay occupational rent. Just because it's not in the contract this does not mean it's null. It's actually a worse position to be in since they can now dictate their own amount which you must agree to or they could stop you from taking occupation. Note to buyers, ALWAYS stipulate the occupational rent amount in the OTP.
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Well, I'm meeting with the buyer tonight to drop off some stuff and get the keys, so we can move in Friday. No mention of occupational rent. I'm assuming if they wanted me to pay, they would need to draw up a separate contract, but I'll check with them tonight.
 
Also, not verbal, if any numbers are thrown, get in writing.
 
What happens if the seller says you can move in Friday, no strings attached, then the house registers the next week? Can the lawyers decide to just bill me for a random occupational rent amount for those two days even if I didn't agree?
 
derp90 said:
Why do you say that? The sellers have been excellent, they've already moved out, and they reached out to me to ask when I needed to move as they were flexible.
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when money is involved things get messy, the right thing for them to do would be to put in an addendum to the OTP stating the occupational rent conditions, even if by some miracle issues dont arise abotu rent there will be with regards the muncipal bill.
 
derp90 said:
What happens if the seller says you can move in Friday, no strings attached, then the house registers the next week? Can the lawyers decide to just bill me for a random occupational rent amount for those two days even if I didn't agree?
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I wouldn't move in unless it is in writing that occupational rent is waived, and some mention about utilities handling.
 
derp90 said:
What happens if the seller says you can move in Friday, no strings attached, then the house registers the next week? Can the lawyers decide to just bill me for a random occupational rent amount for those two days even if I didn't agree?
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Surely this should all be in the OTP. If not, ask for an amendment.

But the risk is more on the seller. As a seller I would not let someone move in until everything is 100% finalised and the conditions in the OTP has been met.
 
RedViking said:
Surely this should all be in the OTP. If not, ask for an amendment.

But the risk is more on the seller. As a seller I would not let someone move in until everything is 100% finalised and the conditions in the OTP has been met.
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Occupational rent section in OTP is crossed out.

Sellers are moving away on Thursday/Friday. I'm meeting with the seller this evening to get the keys, so I'll check with them again and also email the lawyers to confirm and for them to do any paperwork.

There are absolutely zero red flags with the sellers, they even alerted me to a water spot when I viewed the house, fixed it, and went above and beyond in upgrading gas connections to some new standard even when they already had a compliance certificate.

But I will be safe and confirm with them again and the lawyers.
 
derp90 said:
What happens if the seller says you can move in Friday, no strings attached, then the house registers the next week? Can the lawyers decide to just bill me for a random occupational rent amount for those two days even if I didn't agree?
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What happens if the house registers next month? Or two months from now? And a geyser bursts and the water pipe outside leaks?
Of course things might go OK, but pretty much everyone is telling you to put things in writing just in case something goes wrong, so both parties are covered.
 
Sepeng said:
What happens if the house registers next month? Or two months from now? And a geyser bursts and the water pipe outside leaks?
Of course things might go OK, but pretty much everyone is telling you to put things in writing just in case something goes wrong, so both parties are covered.
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yup my pool pump went in the first week. things happen
 
Went to sign transfer documents for our new house at the lawyers yesterday and busy arranging COC's at our current house, the ball should start rolling quicker now that we are 3 months out from planned transfer :cool: We did get the lawyers 'invoice' yesterday which needs to be paid, sonofabitch...
 
derp90 said:
What happens if the seller says you can move in Friday, no strings attached, then the house registers the next week? Can the lawyers decide to just bill me for a random occupational rent amount for those two days even if I didn't agree?
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Normally an occupational rent amount is agreed upon. 0.5% - 1% of the selling price is not uncommon. (ie. R2M house could be between R10k - R20K p/m on avg)

In your example a per day amount would be calculated on a pro rata basis.

EDIT: very important - all money transfers need to happen through the lawyers. DO NOT transfer money directly to seller.
 
Sepeng said:
What happens if the house registers next month? Or two months from now? And a geyser bursts and the water pipe outside leaks?
Of course things might go OK, but pretty much everyone is telling you to put things in writing just in case something goes wrong, so both parties are covered.
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So true this. Anything can happen. The deeds office could suddenly have an issue, or there could be a massive unforeseen issue with the house. Crossing out the occupational rent section in an OTP is very naive thinking that it gets you a free lunch, and it works both ways. What if the seller suddenly can't move, and now you're stuck. Also as per above, don't deal directly with the seller, in fact don't communicate with them at all if possible. Things are good when they are good, but the wheels can quickly come off. Only deal with the seller's attorney.
 
The Darkness said:
So true this. Anything can happen. The deeds office could suddenly have an issue, or there could be a massive unforeseen issue with the house. Crossing out the occupational rent section in an OTP is very naive thinking that it gets you a free lunch, and it works both ways. What if the seller suddenly can't move, and now you're stuck. Also as per above, don't deal directly with the seller, in fact don't communicate with them at all if possible. Things are good when they are good, but the wheels can quickly come off. Only deal with the seller's attorney.
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I didn't cross it out. I think I'm just lucky to have bought from some great sellers, as when I viewed the house they were there and I got a really good feeling. All my dealings with them have been excellent, so I'm not just blindly accepting everything they say or do. It's based on my interactions.

And I know it's business and you're not supposed to base things on feelings yada yada yada and it's the internet so everyone is 100% right and their word is law and I'm naive and will get burned and there are issues waiting at every turn blah blah :D

I am checking with the lawyers about the earlier occupation and will do things by the books :)
 
derp90 said:
Occupational rent section in OTP is crossed out.

Sellers are moving away on Thursday/Friday. I'm meeting with the seller this evening to get the keys, so I'll check with them again and also email the lawyers to confirm and for them to do any paperwork.

There are absolutely zero red flags with the sellers, they even alerted me to a water spot when I viewed the house, fixed it, and went above and beyond in upgrading gas connections to some new standard even when they already had a compliance certificate.

But I will be safe and confirm with them again and the lawyers.
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Its stupid of them not to get at least some occupational rent. Puts them at risk.

The other thing is that lets say there is some kind of issue and they need to pay for something... then things get ugly and they say, well we didn't ask for occupational rent so don't you think its fair you cover this... etc

Its best to just do things by the book.
 
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