Offer to purchase question

beefymoocow said:
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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Remember that damages include the agent's loss on commission which can be substantial.

Best is to keep to the Caveat Emptor rule.
 
beefymoocow said:
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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There can be clauses in the contract for example: the agent to claim back the commission from the defaulting party. Read your contract.
 
bokka1 said:
Remember that damages include the agent's loss on commission which can be substantial.

Best is to keep to the Caveat Emptor rule.
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Yep about 6-8 percentage. But I’m planning to give around 10% a month so about 20-30 percent deposit. Depending on how long the transfer takes.
 
bokka1 said:
Remember that damages include the agent's loss on commission which can be substantial.

Best is to keep to the Caveat Emptor rule.
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Oh btw do you know any lawyers that charge a fix fee for transferring property. Don’t know why they Use a table.
 
beefymoocow said:
Yep about 6-8 percentage. But I’m planning to give around 10% a month so about 20-30 percent deposit. Depending on how long the transfer takes.
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Just buy straight from the seller. It ain’t rocket science to buy property. You will save thousands also
 
beefymoocow said:
Oh btw do you know any lawyers that charge a fix fee for transferring property. Don’t know why they Use a table.
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All our fees work on a sliding scale.

The higher the price, the higher the risk for us, the higher the fee.

The Deeds Office fees and transfer duties from SARS works on the same scale.
 
bokka1 said:
All our fees work on a sliding scale.

The higher the price, the higher the risk for us, the higher the fee.

The Deeds Office fees and transfer duties from SARS works on the same scale.
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The Sars fees is mostly relates to tax the rich and less on the poor. Not really on risk.

I guess the lawyers can use risk as a justification.

I wonder why doesn’t asset manager use that defense and say it’s risk and charge more fees for investors who invest more.

I have a feeling the conveyancing process hasn’t been disrupted with fin techs like the financial/investment sector.
 
bokka1 said:
I agree.

What do you do for a living?
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Someone mentioned disruption of the industry earlier. I certainly don't expect any lawyer to go through the schlep for free, they also need to eat, but would you say there is opportunity for any market disruption and, if so, what is inhibiting this?
 
Speedster said:
Someone mentioned disruption of the industry earlier. I certainly don't expect any lawyer to go through the schlep for free, they also need to eat, but would you say there is opportunity for any market disruption and, if so, what is inhibiting this?
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No matter what you do, you will still need to ultimately deal with our lovely Deeds offices :ROFL: And THAT is where the rub is.

Once the deeds office has an automated system that is reliable, stable and usable by the end users. Only then will there be new opportunities to cut some fat from the current ways.
 
TheBadMadMan said:
No matter what you do, you will still need to ultimately deal with our lovely Deeds offices :ROFL: And THAT is where the rub is.

Once the deeds office has an automated system that is reliable, stable and usable by the end users. Only then will there be new opportunities to cut some fat from the current ways.
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On a R1m purchase, the lawyer fees are over R20k. Surely is there some room for an industry player to disrupt that?
 
Speedster said:
Someone mentioned disruption of the industry earlier. I certainly don't expect any lawyer to go through the schlep for free, they also need to eat, but would you say there is opportunity for any market disruption and, if so, what is inhibiting this?
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I think it’s mostly relates to education and the free market principle isn’t as effective since the seller chooses the lawyers.

If buyers had to. They will have more negotiating power. Seller wouldn’t mind the cost because of perceived quality and they don’t pay for it directly.
 
Speedster said:
Someone mentioned disruption of the industry earlier. I certainly don't expect any lawyer to go through the schlep for free, they also need to eat, but would you say there is opportunity for any market disruption and, if so, what is inhibiting this?
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Not really, conveyancing covers many aspects of law and one has to spesialise in it, it is much more than signing a Title Deed.

Not all attorneys are conveyancers or notaries, it's extra qualification exams that have to be done.
 
bokka1 said:
Not really, conveyancing covers many aspects of law and one has to spesialise in it, it is much more than signing a Title Deed.

Not all attorneys are conveyancers or notaries, it's extra qualification exams that have to be done.
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But then I disagree with your assessment of charging on a sliding scale due to risk.

If I buy a property for R1. The lawyers fees will be around 12k. But if buy a property for R3mil maybe it will be around 30-40k in fees. (Let’s say)

So to calculate risk premium you minus the minimum cost to transfer to the actual cost of transfer and this will be the extra cost lawyers will charge for the extra risk.

The cost of specialized skills should be embedded in the minimum cost to transfer a property. So if you are gonna disrupt it’s gotta to be on the risk side. Since most of cost is comprises of risk.

Well that’s if we assume the increase cost in the sliding scale is purely risk base.

To be honest I don’t think so. It’s more because more of maximizing profit. But that’s my opinion.
 
beefymoocow said:
But then I disagree with your assessment of charging on a sliding scale due to risk.

If I buy a property for R1. The lawyers fees will be around 12k. But if buy a property for R3mil maybe it will be around 30-40k in fees. (Let’s say)

So to calculate risk premium you minus the minimum cost to transfer to the actual cost of transfer and this will be the extra cost lawyers will charge for the extra risk.

The cost of specialized skills should be embedded in the minimum cost to transfer a property. So if you are gonna disrupt it’s gotta to be on the risk side. Since most of cost is comprises of risk.

Well that’s if we assume the increase cost in the sliding scale is purely risk base.

To be honest I don’t think so. It’s more because more of maximizing profit. But that’s my opinion.
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What risk? Either you can afford buying a new place or not. Either via bond or cash.

If you are afraid of buying... rent your life long.
 
beefymoocow said:
But then I disagree with your assessment of charging on a sliding scale due to risk.

If I buy a property for R1. The lawyers fees will be around 12k. But if buy a property for R3mil maybe it will be around 30-40k in fees. (Let’s say)

So to calculate risk premium you minus the minimum cost to transfer to the actual cost of transfer and this will be the extra cost lawyers will charge for the extra risk.

The cost of specialized skills should be embedded in the minimum cost to transfer a property. So if you are gonna disrupt it’s gotta to be on the risk side. Since most of cost is comprises of risk.

Well that’s if we assume the increase cost in the sliding scale is purely risk base.

To be honest I don’t think so. It’s more because more of maximizing profit. But that’s my opinion.
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I see that as the same tax scale we earn salaries. Higher up, it will cost you more.

Certain things are for sure out of our control.

If you wanna moan about fees, alot of developers (when buying off plan), they include registration costs
 
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