Offer to purchase question

bokka1 said:
Have you sold a property? Do you want your own attorney to look after your own interest or that of the buyer?

Attorneys can not appear on behalf of the seller and the buyer, otherwise there would be a conflict of interest. He has to act on behalf of the person who gives him a mandate.

And in most cases that is the Seller.

I am typing this as more of a general info session and not specifically to the quoted post.
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Out of 8 properties, I had the choice of choosing in 7 transactions the transport leg. I call it trust!

Anyway, lets hope my transaction get quickly rolling again
 
beefymoocow said:
I might be making a cash offer to a seller. I’m thinking of putting in a clause that I will pay 10% of the purchase price in 7 days of acceptance and a further 10% percentage each month until the property is ready for lodging then I pay the remaining amount. I’m assuming the lawyers won’t have a problem with it if the seller agrees right? I have the money it’s just in my flexi bond.
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Put a clause in: you will get a bank letter the funds are available 24/7. And that you will pay 2 days before lodging.

Thats my rule when buying property. (Use it or dont).

And put in another clause, ALL clearances (including ALL coc’s)... for the seller!
 
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wtg said:
Explains why mine takes days to respond to a simple question. What are the prerequisites to getting the sars transfer duty receipt? Besides guarantee and signing with bond and transfer attorney? And how long does it take usually?
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If the transfer duty forms are uploaded to SARS it does not take more than 24 hours for me to get clearance to pay, then I authorise the payment on SARS, go to my own bank account and accept the payment. Within a few hours the transfer duty receipt will be ready. It really is a very streamlined process.

The problem comes when SARS queries the value of the property, then you are in for a whole lot of pain.

You must also understand that we work with multiple files and diarise the files, I do one action now and check on it again when it gets to the top of the pile. The time lapse between these actions should not be more than a day at most

It works like any other job, you can't do everything at once.
 
zerocool2009 said:
Put a clause in: you will get a bank letter the funds are available 24/7. And that you will pay 2 days before lodging.

Thats my rule when buying property. (Use it or dont)
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Well that’s always gonna be first prize to pay on the last day. Sometimes I might need to compromise. And the 10% per month seems to be reasonable especially when we close to December. Most people might be going on holiday soon. Don’t want my money stuck in a trust account.
 
beefymoocow said:
I might be making a cash offer to a seller. I’m thinking of putting in a clause that I will pay 10% of the purchase price in 7 days of acceptance and a further 10% percentage each month until the property is ready for lodging then I pay the remaining amount. I’m assuming the lawyers won’t have a problem with it if the seller agrees right? I have the money it’s just in my flexi bond.
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10% deposit, balance just before lodging. End of story
 
bokka1 said:
Ja, we call that a guarantee.
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Are there any lawyers that charge a fix fee regardless of the value of the property. I don’t understand why there’s a table. Is the work load not more or less not the same?

It kinda reminds me of investment managers charging their fees.
 
bokka1 said:
If the transfer duty forms are uploaded to SARS it does not take more than 24 hours for me to get clearance to pay, then I authorise the payment on SARS, go to my own bank account and accept the payment. Within a few hours the transfer duty receipt will be ready. It really is a very streamlined process.

The problem comes when SARS queries the value of the property, then you are in for a whole lot of pain.

You must also understand that we work with multiple files and diarise the files, I do one action now and check on it again when it gets to the top of the pile. The time lapse between these actions should not be more than a day at most

It works like any other job, you can't do everything at once.
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Thank you for the explanation. Understood.
The only thing I asked my transfer attorney is when she planning to get the receipt, as she requested the money two weeks ago - I paid on request. No response yet. I trust that she knows best, so I won't complain for now
 
beefymoocow said:
Are there any lawyers that charge a fix fee regardless of the value of the property. I don’t understand why there’s a table. Is the work load not more or less not the same?

It kinda reminds me of investment managers charging their fees.
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If you buy below R1kk, zero transfer duty. I assume you are talking about that.
 
beefymoocow said:
I might be making a cash offer to a seller. I’m thinking of putting in a clause that I will pay 10% of the purchase price in 7 days of acceptance and a further 10% percentage each month until the property is ready for lodging then I pay the remaining amount. I’m assuming the lawyers won’t have a problem with it if the seller agrees right? I have the money it’s just in my flexi bond.
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If the seller agrees then that will be fine.

I won't advice my seller to accept that without a guarantee in place for the remainder of the purchase price.

Place yourself in the shoes of the seller, he is losing out if the buyer does not have the money.
 
beefymoocow said:
No I’m not. I’m talking about lawyer fees. They charge more for lodging a higher value property. They have a scale.
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Befriend an attorney! . Start an investment club with a few players! One must be an attorney (heard it works like a charm)
 
bokka1 said:
If the seller agrees then that will be fine.

I won't advice my seller to accept that without a guarantee in place for the remainder of the purchase price.

Place yourself in the shoes of the seller, he is losing out if the buyer does not have the money.
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Don’t you mitigate the risk by having a step up in deposit.

If I was the seller I wouldn’t mind if the deal doesn’t go through. Well depends if I’m desperate for the sale. But if I’m not. Doesn’t the seller bag a 10% deposit and any subsequent deposit?
 
bokka1 said:
If the seller agrees then that will be fine.

I won't advice my seller to accept that without a guarantee in place for the remainder of the purchase price.

Place yourself in the shoes of the seller, he is losing out if the buyer does not have the money.
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Not everyone in SA is a thief of some sort.
 
beefymoocow said:
I might be making a cash offer to a seller. I’m thinking of putting in a clause that I will pay 10% of the purchase price in 7 days of acceptance and a further 10% percentage each month until the property is ready for lodging then I pay the remaining amount. I’m assuming the lawyers won’t have a problem with it if the seller agrees right? I have the money it’s just in my flexi bond.
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Wouldn’t the money first go to a trusted 3rd party before the deed is transferred? My cash purchases have been in the US (we call it an escrow account), but I would expect something equivalent. Anything else sounds crazy.

I always just make one transfer into the escrow account and I’m done. There’s something called “earnest money” as a partial upfront payment, but it isn’t always done.
 
cguy said:
Wouldn’t the money first go to a trusted 3rd party before the deed is transferred? My cash purchases have been in the US (we call it an escrow account), but I would expect something equivalent. Anything else sounds crazy.
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Money goes to the lawyers and should be put in a special account, never directly to the seller
 
beefymoocow said:
Don’t you mitigate the risk by having a step up in deposit.

If I was the seller I wouldn’t mind if the deal doesn’t go through. Well depends if I’m desperate for the sale. But if I’m not. Doesn’t the seller bag a 10% deposit and any subsequent deposit?
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Damages can only be for real damages, you can't just deduct damages randomly from the deposit.

The best is to pay the money into the attorney's trust account and cut your losses if any. All call accounts are dismal now with regard to interest.
 
Steamy Tom said:
Money goes to the lawyers and should be put in a special account, never directly to the seller
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This is correct, the money goes into a trust account and we pay it over to the seller once registration goes through.

If I take that money and go on an extended holiday the depositor will be refunded within a few week if not days by the Attorneys Fidelity Fund.
 
bokka1 said:
Damages can only be for real damages, you can't just deduct damages randomly from the deposit.

The best is to pay the money into the attorney's trust account and cut your losses if any. All call accounts are dismal now with regard to interest.
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Oh I didn’t know that. I always thought if the buyer backs out on a deal he loses his deposit.

So you saying the loss are limited to damages.

Ok so if indicate to the seller the loss are not limited to damages but can have my deposit if I don’t come up with the remaining cash. It will make it enticing for the seller to accept the agreement. Because I know as a buyer I won’t have a funding issue problem.
 
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