Offer to purchase question

[Next Thing]

Plans are also a grey area, if it is not included in the OTP as a requirement and the property is sold voetstoots then it is debatable if the seller must supply the plans.

True , but .....
As the buyer a lot of municipalities wont even let you try request a copy of what they have. The current owner of the property (seller) has to request..
Also if you buy a property without approved plans you could end up in a world of hurt.
Anyone buying would be in their best interest to put plans in the otp.

Approved plans and property sales | Here's what you need to know - Property24

Buyers are often advised to check approved plans before making an offer to purchase. But who is responsible for making these plans available, and what happens if they don’t match reality?

www.property24.com

Are approved plans a legal requirement for sale?

There is a common misconception among buyers, sellers and even some property professionals that approved plans are a legal requirement for a sale. According to Lotz, however, it’s perfectly legal to sell a property without approved plans. It might just be a little trickier than if they were available.

“The trouble is, a lot of banks insist on seeing approved plans before granting buyers’ finance,” he says. “They basically want to make sure there’s nothing illegal about the structure that might impact the security of their investment. So, while you don’t legally need plans to sell, you may find it very difficult to secure a buyer without them unless you’re lucky enough to have a cash offer on the table.”

 

[zerocool2009]

True , but .....

Approved plans and property sales | Here's what you need to know - Property24

Buyers are often advised to check approved plans before making an offer to purchase. But who is responsible for making these plans available, and what happens if they don’t match reality?

www.property24.com

Are approved plans a legal requirement for sale?

There is a common misconception among buyers, sellers and even some property professionals that approved plans are a legal requirement for a sale. According to Lotz, however, it’s perfectly legal to sell a property without approved plans. It might just be a little trickier than if they were available.

“The trouble is, a lot of banks insist on seeing approved plans before granting buyers’ finance,” he says. “They basically want to make sure there’s nothing illegal about the structure that might impact the security of their investment. So, while you don’t legally need plans to sell, you may find it very difficult to secure a buyer without them unless you’re lucky enough to have a cash offer on the table.”

If you think no plans are required, buy CASH. Cry later. The bank takes the risk when giving a bond. As simple as that. Fit in or fall in with their rules, or buy CASH

 

[bokka1]

True , but .....
As the buyer a lot of municipalities wont even let you try request a copy of what they have. The seller has to request..

Approved plans and property sales | Here's what you need to know - Property24

Buyers are often advised to check approved plans before making an offer to purchase. But who is responsible for making these plans available, and what happens if they don’t match reality?

www.property24.com

Are approved plans a legal requirement for sale?

There is a common misconception among buyers, sellers and even some property professionals that approved plans are a legal requirement for a sale. According to Lotz, however, it’s perfectly legal to sell a property without approved plans. It might just be a little trickier than if they were available.

“The trouble is, a lot of banks insist on seeing approved plans before granting buyers’ finance,” he says. “They basically want to make sure there’s nothing illegal about the structure that might impact the security of their investment. So, while you don’t legally need plans to sell, you may find it very difficult to secure a buyer without them unless you’re lucky enough to have a cash offer on the table.”

In my experience the banks very seldom ask for plans, except with brand new houses or when a valuator sees a dodgy extension to the property. This year I had one such requirement/request from a bank.

 

[Next Thing]

If you think no plans are required, buy CASH. Cry later. The bank takes the risk when giving a bond. As simple as that. Fit in or fall in with their rules, or buy CASH

I am agreeing with you
I only said true because currently it is not a legal requirement

 

[Next Thing]

In my experience the banks very seldom ask for plans, except with brand new houses or when a valuator sees a dodgy extension to the property. This year I had one such requirement/request from a bank.

The last 4 houses I purchased over 10 years have all had a request for plans. Various banks. Only 1 was off plan

 

[muisnes]

As a buyer it is not your responsibility and as zerocool says you have time on your side.
It is the sellers responsibility to arrange COC's and if they do not attend to it timely then they are the ones causing the delay.

Same as supplying plans.
Like it was said, auctions are a different kettle of fish

I completely agree that COCs should be provided by the seller.

The comment I replied to was

Tell the attorneys who demands it, you are holding up the process! You have lots of time on your hands

Never indicate that you are the one holding up transfer. Be clear that the seller is the one holding up the process.

In my experience the banks very seldom ask for plans, except with brand new houses or when a valuator sees a dodgy extension to the property. This year I had one such requirement/request from a bank.

Also my experience. In none of my transfers did the banks or municipalties require building plans. In the last 3 years these transfers included commercial property, freestanding residential, sectional title and vacant plots in different municipalities (all Western Cape though). Also bonds by different banks.

While I did insist on plans when I bought my house 18 months ago, I still got burned. The neighbour started building on the vacant plot next door 6 months after I moved in and got the surveyors to mark out his foundation. Turns out the builders exceeded the boundary of the property by 150mm when they built the pool area and no one noticed. I bought from an old German couple who had buggered off back to Europe by that stage.

 

[nulkoel]

I am loving this topic. If you buy, put confirmed plans in the OTP. Fnb loves to put that spanner in the works. You just cover yourself from endless future issues/expenditure...

When we sold our house earlier this year, the buyers had an approved loan from Standard Bank and we received no additional requests. They then decided to rather go with FNB though, who asked for an occupancy certificate of the second dwelling, CoC for gas installation and had questions about the labelling of rooms on the plans. None of that was an issue and we just forwarded the requested documentation, but it was definitely a surprise at that stage of the process. All of this is understandable if you see how many people are just doing whatever the hell they want on their properties without following the necessary processes.

 

[zerocool2009]

When we sold our house earlier this year, the buyers had an approved loan from Standard Bank and we received no additional requests. They then decided to rather go with FNB though, who asked for an occupancy certificate of the second dwelling, CoC for gas installation and had questions about the labelling of rooms on the plans. None of that was an issue and we just forwarded the requested documentation, but it was definitely a surprise at that stage of the process. All of this is understandable if you see how many people are just doing whatever the hell they want on their properties without following the necessary processes.

Exactly!

I am seeing these type of issues daily! Its rather covering your side vs to pay for something that wasnt your wrong doing.

I always say, if in ANY transaction it fails 1% (rather walk away).

 

[6spdmanual]

In the process of getting a home. It’s a stressful yet fun process. Negotiating with the banks has been fun!

 

[KOPITE]

I have a question guys, i had 2 buyers for my property, but both fell through. 1st guy ran own business and he was declined by banks, 2nd needed to sell their home first.

my question would be if those previous buyers came back like 3 months after and are ready to buy the property. do i still need to pay the agent a commission fee since they brought the people to my place or is their an expiry date that passes. I am thinking of listing it myself and getting back to those previous buyers who signed an otp, but got declined by the banks.

where do i stand as i don't want an agent to come hound me after i sold the property and come looking for he's commission money

 

[Arzy]

I have a question guys, i had 2 buyers for my property, but both fell through. 1st guy ran own business and he was declined by banks, 2nd needed to sell their home first.

my question would be if those previous buyers came back like 3 months after and are ready to buy the property. do i still need to pay the agent a commission fee since they brought the people to my place or is their an expiry date that passes. I am thinking of listing it myself and getting back to those previous buyers who signed an otp, but got declined by the banks.

where do i stand as i don't want an agent to come hound me after i sold the property and come looking for he's commission money

Your mandate with the agent would most likely include a clause to cover this and if in any way they can be deemed to be the "effective cause" of the sale they will be claiming commission.

 

[zerocool2009]

I wouldn’t take an offer of a buyer who was declined (via an agent). Come high or low waters agents are hooked up with lawyers. They will fight for that no matter what.

If the mandate expires, list it on your own. If a buyer that failed try again, put in the OTP if any agent seeks commission for work done previously, its on the buyer “cost”

 

[Steamy Tom]

I have a question guys, i had 2 buyers for my property, but both fell through. 1st guy ran own business and he was declined by banks, 2nd needed to sell their home first.

my question would be if those previous buyers came back like 3 months after and are ready to buy the property. do i still need to pay the agent a commission fee since they brought the people to my place or is their an expiry date that passes. I am thinking of listing it myself and getting back to those previous buyers who signed an otp, but got declined by the banks.

where do i stand as i don't want an agent to come hound me after i sold the property and come looking for he's commission money

They introduced the buyer to you, you will be liable, it's also unethical and morally wrong.

There are many fish in the sea, find a new buyer.

 

[Ma’bad]

I have a question. I bought a new property from a developer (Sectional title)
They have given me only a 3 weeks to give a snag list. Is that normal (seems a bit short to me)? Is there a minimum period that developers are responsible for any defects?

 

[Snyper564]

I have a question. I bought a new property from a developer (Sectional title)
They have given me only a 3 weeks to give a snag list. Is that normal (seems a bit short to me)? Is there a minimum period that developers are responsible for any defects?

not sure if its normal etc but 3 weeks is more than enough time, throw rain into the mix and you will now soon enough.

 

[zerocool2009]

I have a question. I bought a new property from a developer (Sectional title)
They have given me only a 3 weeks to give a snag list. Is that normal (seems a bit short to me)? Is there a minimum period that developers are responsible for any defects?

Start by flushing, check all elec stuff. Look inside cupboards. And I hope you asked for extra tiles

 

[RedViking]

I have a question. I bought a new property from a developer (Sectional title)
They have given me only a 3 weeks to give a snag list. Is that normal (seems a bit short to me)? Is there a minimum period that developers are responsible for any defects?

Google says 60-90 days. What does the OTP say?

 

[Ma’bad]

not sure if its normal etc but 3 weeks is more than enough time, throw rain into the mix and you will now soon enough.

Neighbour has some water seepage on the walls outside his garage… so got me a lil worried…

 

[Ma’bad]

Google says 60-90 days. What does the OTP say?

It does not state anything with regards to a duration only that owner is unaware of any defects

 

[blaine666]

Purchased a Townhouse, OTP signed Nov 3rd 2022, everything sorted from my side, just waiting forever for rates clearance certificate, latest update from lawyers,

"They have had a backlog due to load shedding and today we have been advised that they have been offline since the 23rd December and we do not know when they will be back online."