Offer to purchase question

Wrath of Khan said:
once both parties have signed, you're locked in... you can of course get out, but you are going to pay, and guess who the ONLY party that is there to screw you over, wait... wait... wait.. you guessed it, ding ding ding ---> the estate agent! They will eff you so hard in your noose pipe just to get there filthy commission.

be warned.

oh and 100% agree on the other chaps post, in an OTP give the owner 24hrs - 48hrs max to decide on your offer. They know the price they want, stop with this 7 days eff me in the bum waiting to see if the agent can screw over more people to get more money for themselves.

Also, you are allowed to add in anything you want into the condition of sale, fix this do that, rent your daughter the works, as long as it is counter signed its binding.
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So for conditions like supplying council approved plans as well as certificate of occupancy, where you stipulate must be produced before registration. Will the lawyers halt the process as long as it hasn’t been supplied? What if it goes on for months?
 
Wrath of Khan said:
stop with this 7 days eff me in the bum waiting to see if the agent can screw over more people to get more money for themselves.
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This is what our **** of a slimeball bitch did. We made an offer, it was presented to the sellers and next thing we know the house is listed again, for R50k more.
 
I once had an agent tell me that I must give the sellers at least 5 days to consider the offer, as they need to sleep on it. I told them that I'm doing 36 hours, it gives them 2 nights to sleep on it and decide, and if they don't like it, they can make a counteroffer.
 
ja that certificate of occupancy would have been issued when the building was built back when Moses wore shorts.
Always put a time frame in an OTP, this gives you a get out of jail free card and put pressure on the seller to do what they have agreed to.

eg. the council approved plans for the structure must be given to myself for inspection within 7 days otherwise this OTP is considered null and void and no costs will be liable by myself whatsover.

now if the above is not given to you, then you are legally allowed to say cheers as the seller is in default, you walk away... you can just ask the attorney to make the wording better.

any default must have a time period to allow the defaulting parting to rectify or aquire said issue / item.
 
babyfacek said:
So for conditions like supplying council approved plans as well as certificate of occupancy, where you stipulate must be produced before registration. Will the lawyers halt the process as long as it hasn’t been supplied? What if it goes on for months?
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You put timeliness and deadlines to things.

It's the biggest purchase of your life, do not for one second give two fscks about pissing off the agent or the seller, they mean fsck all to you.
 
So, i saw another property over the weekend and like and told agent wanted to put in OTP, last night as i was filling out the form i went to the site and the property has been taken down. So what will i be offering on if the advert is no longer there? Am done with these agents.
 
babyfacek said:
So, i saw another property over the weekend and like and told agent wanted to put in OTP, last night as i was filling out the form i went to the site and the property has been taken down. So what will i be offering on if the advert is no longer there? Am done with these agents.
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Message the agent and query?
 
babyfacek said:
So, i saw another property over the weekend and like and told agent wanted to put in OTP, last night as i was filling out the form i went to the site and the property has been taken down. So what will i be offering on if the advert is no longer there? Am done with these agents.
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So the agent responded and said they got an offer before the show house this weekend and the seller agreed to it. However, still waiting on the suspensive conditions i.e getting a bond. So they will still accept a reasonable offer should the first one lapse. I am definitely offering less than the price they are offering as there is a bit of work to be done. He claims the other offer is full price. So will see how that pans out.

Hence why they removed the ad. Doesn’t make sense though. I thought you update it to under offer or something?
 
The agent is lying.

1. They don't remove the ad until the purchase is complete. An accepted offer does not mean the offer is complete.
2. "The other offer is full price" is a common tactic, and it doesn't matter either. By law they are required to present any and all offers to the seller, no matter if it's more or less than the current offer on table.
 
Toxxyc said:
The agent is lying.

1. They don't remove the ad until the purchase is complete. An accepted offer does not mean the offer is complete.
2. "The other offer is full price" is a common tactic, and it doesn't matter either. By law they are required to present any and all offers to the seller, no matter if it's more or less than the current offer on table.
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How does one know if they actually presented an offer to the owner?
 
I saw this thread quite late but I figured I would comment about my experience. Unfortunately I only found and read through everyones posts here quite late into the process, so mistakes were made.

I am a first time buyer, and I am in the 4th week of this ordeal. It has been rather stressful if I am honest. The day I put in the OTP, I had a restless night.

I had something specific in mind in terms of layout and location so I really had no hope of finding something in my price range I had intially planned, so mentally, I bumped it up. One Friday morning 3 weeks ago, I was having breakfast while waiting for my car to get a wash and found something that appeared to be too good to be true in terms of location and price. I spoke to my dad, and he said we should view. The next day, the lot of us went there to look. Parents liked it, as did I. On Monday I drove to the agent and we sorted out an OTP.

There was nothing but silence for the next week. I knew they were having a showhouse the next weekend, so I suspected they were waiting on that to happen first before considering mine. I really expected to hear a firm no because of the offer I made, it was 12.5% below asking price.

A week to the day after signing the OTP I got a call saying they accepted. A few hours after that news, I had a bill from the transfer fees lawyers and I had building insurance, and death cover for the bond. After that, it was bond approval and then the bond registration lawyers came to the party with their bill estimate. In hindsight, I think my "lowball" offer was quite fair, for many reasons.

My list of mistakes:

* I have mixed feelings of how I handled the OTP. I pretty much went to the agent, then she explained everything in the form, I signed and initialled, then left. There is pretty much nothing in the OTP that covers me if something were to go wrong or if a surprise popped up.
* I didn't get a building inspector to take a look at things or mention anything on the OTP about a good report dictating the sale
* I got a strong vibe that there are issues with the plans. I don't want to go to much into detail, but this is obviously a red flag of which I am at the stage I can do nothing about it. School fees if my hunch is correct.
* I went through a bond originator, so bye bye eBucks. I was very sad about this.
* Don't think this is much of a mistake, but I got death cover for the bond before checking if this was necessary. I will try source a cheaper policy because if I went, then at least my parents wouldn't have to worry about a bond.
* I didn't ask the transfer attornies for a discount, although it seems getting one is a mixed bag.

Frustrations:

* Estate agents
* The lawyers are so quick to come with bills. The day the OTP was accepted, I had an invoice. No one warned me.
* The 50% discount on the bond registration feels like a bit of a lie. That quote is so padded with fees that I feel like they have more than made up for it.

In terms of fees, the quotes from Ooba kind of match what I was billed, although I am probably going to come out paying slightly less. Transfer fee lawyers were 65k, bond registration I expect to be around 19 or 20. Ooba quote 89. Without this supposed 50% bond registration discount, I rate it would be a good 12k more. I am also putting down a substantial deposit - something that people in this thread disagreed on. I had a firm number of what I wanted the bond payments to be so that was my reasoning. I also hope and intend to pay off the bond way before 20 years is up, but at the moment its rather hopeful thinking.

I am kind of nervous about the whole thing, and I'm hoping its just first time buyer nerves. I don't think I have much to worry about in terms of the house itself, it has strong bones. I don't feel any buyers remorse, and I have budgeted some money to fix things up. I am just hoping any surprises are manageable finance wise.

I must say it is incredibly difficult seeing so much cash fly out when I have been saving and investing for so many years. I keep myself almost sane by telling myself that this is why I did it.

There are a lot of things to complain about with this house and the costs, but figured I would end with some good things:

* The house is in an amazing area
* The house was sold quite a lot less than the other houses in the street are valued at / sold. It's pretty clear to see why when I compare theirs with mine. But I believe with a bit of money and fixing up, this house could pull in some money one day.
* It is a landlords dream

If some sucker who has never been through this (like me) happens to read this - it is worthwhile reading through the 231 odd pages before doing anything. My biggest regret (for now), is not doing that first.
 
We went to look at well priced properties in a good area. I was shocked in what condition the properties were presented, specially one of them you would swear pigs live there. Have the agents no shame? Don't they have some sort of standard for the owners before they sell it? The family jumped in the car and left just as we were about to view.

My first question at the gate to the agent was, are the plans of the property up to date. She just gives a laugh and shrugged her shoulders. Will have to check. Surely this is something they should know before they sell it?

Walk past the fire place and asked her if it is working. Maybe. Maybe not.

I took one look at the plumbing and asked her if this will have a CoC. She said it won't be an issue to get a CoC.
Have they no shame?

I don't mind an old building that needs work, or maybe the owners fell on hard times. But an agency who think it is acceptable to take clients through an untidy mess is shocking.
 
We're also in the market for a house (again). It's the 3rd time in about 6 years, actually. The first was a great buy at a bargain, and went smooth as butter. The second was a purchase made in good faith, great hopes and dreams and so far it's been great, but we do wish we did our homework in the area a bit better. We bought on the higher end of the scale for homes in the area, and then pushed almost R200k into the house on top of that, and now that we're looking at homes again, I am worried we'll be losing this investment if we sell the house, since we might not get what we paid.

The reason we're looking now, is simply because we are looking for more. More space, more freedom. Also less. Less people, less traffic. We saw a smallholding last week and I put in an offer yesterday. I read through the OTP documents 3 times and I'm still not entirely happy with the whole way it's structured, but that's OK, it's not too bad.

I put in an offer for what I believe the place should be sold at, considering it's a smallholding between farms, with NO security. I'm talking NO security. The piece of land is surrounded by a very badly maintained cattle fence (regular 1.2m barbed fence) that's broken here and there, and a gate that swings open with no lock. From there you can walk straight to the house. The garage has no door, and there are no security gates or burglar bars on any doors or windows on the entire house. There are beams on poles around the house, but they are definitely not working (the wires are sticking out the top), so they are useless.

There's a pool, but it is badly cracked and will need either a new lining, or it will have to be filled.

On top of that, the house has a few needs - like a coat of paint on the outside, there are numerous cracked tiles on the stoep (which completely surrounds the house on 2 sides), there's a possible termite issue, some work needs to be done in the kitchen (but that I can DIY) and the place needs a solar system. Ain't no way I'm paying R7k a month for electricity, of which R3,600-ish is just to have the damn Eskom transformer on your property in the first place.

The offer I put in is low enough that with some hard work (which I'm totally capable of) and a bit of money it can be turned into a magnificent property, and then I'm pretty sure I'll get my money's worth. It is surrounded by beautiful other smallholdings and farms, and I have no doubt the area's price will just increase. There's no squatter camps nearby, and there's a tarred road right up to the property fence. That tarred road is also not a road that passes through, so traffic on there is limited to the people who live or visit there only.

The house itself is also in great condition, there are no signs of leaks, the roof looks good (no lifting sheets), the walls look solid with no cracks that I could see in walls or flooring, doors all open easily so there's no movement there, etc.

We're hoping, but I doubt they'll go for it. It's around 21% under their asking price on the one ad, and almost 30% under asking for the other price it's listed at (which is absurd, to be honest). There's just no way I'm paying R1.9mil for a place with those issues listed, especially the security problems.

So let's see. Holding thumbs.
 
My son bought a house in August 2023. Still not registered in his name. Had numerous issues cause the seller had alterations made years ago without approved plans.

New plans had to be drawn and submitted to Tshwane for approval. Spluma certificates were required,etc.

Tshwane took their time to sort everything. It is now 1 year and hopefully it will get registered now.
 
SlowInternet said:
My son bought a house in August 2023. Still not registered in his name. Had numerous issues cause the seller had alterations made years ago without approved plans.

New plans had to be drawn and submitted to Tshwane for approval. Spluma certificates were required,etc.

Tshwane took their time to sort everything. It is now 1 year and hopefully it will get registered now.
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Wow! Are the sellers still in the house or its lying empty?
 
RedViking said:
We went to look at well priced properties in a good area. I was shocked in what condition the properties were presented, specially one of them you would swear pigs live there. Have the agents no shame? Don't they have some sort of standard for the owners before they sell it? The family jumped in the car and left just as we were about to view.

My first question at the gate to the agent was, are the plans of the property up to date. She just gives a laugh and shrugged her shoulders. Will have to check. Surely this is something they should know before they sell it?

Walk past the fire place and asked her if it is working. Maybe. Maybe not.

I took one look at the plumbing and asked her if this will have a CoC. She said it won't be an issue to get a CoC.
Have they no shame?

I don't mind an old building that needs work, or maybe the owners fell on hard times. But an agency who think it is acceptable to take clients through an untidy mess is shocking.
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I think the problem is the seller. They will be insisting on selling it as it is. The agent can only do as much. Not siding with the agent as i really don’t like them.

Went to view a property and the owners didn’t want to open the garage. They said the batteries had died and wanted to get someone to help open. Went for a second viewing and still not open. Also lost keys to a back room. They were clearly not ready to sell!
 
Toxxyc said:
We're also in the market for a house (again). It's the 3rd time in about 6 years, actually. The first was a great buy at a bargain, and went smooth as butter. The second was a purchase made in good faith, great hopes and dreams and so far it's been great, but we do wish we did our homework in the area a bit better. We bought on the higher end of the scale for homes in the area, and then pushed almost R200k into the house on top of that, and now that we're looking at homes again, I am worried we'll be losing this investment if we sell the house, since we might not get what we paid.

The reason we're looking now, is simply because we are looking for more. More space, more freedom. Also less. Less people, less traffic. We saw a smallholding last week and I put in an offer yesterday. I read through the OTP documents 3 times and I'm still not entirely happy with the whole way it's structured, but that's OK, it's not too bad.

I put in an offer for what I believe the place should be sold at, considering it's a smallholding between farms, with NO security. I'm talking NO security. The piece of land is surrounded by a very badly maintained cattle fence (regular 1.2m barbed fence) that's broken here and there, and a gate that swings open with no lock. From there you can walk straight to the house. The garage has no door, and there are no security gates or burglar bars on any doors or windows on the entire house. There are beams on poles around the house, but they are definitely not working (the wires are sticking out the top), so they are useless.

There's a pool, but it is badly cracked and will need either a new lining, or it will have to be filled.

On top of that, the house has a few needs - like a coat of paint on the outside, there are numerous cracked tiles on the stoep (which completely surrounds the house on 2 sides), there's a possible termite issue, some work needs to be done in the kitchen (but that I can DIY) and the place needs a solar system. Ain't no way I'm paying R7k a month for electricity, of which R3,600-ish is just to have the damn Eskom transformer on your property in the first place.

The offer I put in is low enough that with some hard work (which I'm totally capable of) and a bit of money it can be turned into a magnificent property, and then I'm pretty sure I'll get my money's worth. It is surrounded by beautiful other smallholdings and farms, and I have no doubt the area's price will just increase. There's no squatter camps nearby, and there's a tarred road right up to the property fence. That tarred road is also not a road that passes through, so traffic on there is limited to the people who live or visit there only.

The house itself is also in great condition, there are no signs of leaks, the roof looks good (no lifting sheets), the walls look solid with no cracks that I could see in walls or flooring, doors all open easily so there's no movement there, etc.

We're hoping, but I doubt they'll go for it. It's around 21% under their asking price on the one ad, and almost 30% under asking for the other price it's listed at (which is absurd, to be honest). There's just no way I'm paying R1.9mil for a place with those issues listed, especially the security problems.

So let's see. Holding thumbs.
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Good luck!
 
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