Offer to purchase question

powermzii said:
Pretty much hey - apparently they had issues sorting their sale out. The seller's lawyers had some questions for the bank earlier and this was resolved so we just signed the Advice of Grant.

Should be paying Transfers in the next few days then start planning for the move for end Nov
Click to expand...

Awesome. Congratulations!
 
Update on mine, the sars audit is done, they are happy. Transfer attorney says she will submit payment tomorrow then hopefully lodge on Monday
 
APoc184 said:
Assume you have been registered successfully and all is done on your side?
Click to expand...

Sigh... no not yet, remember it got rejected due to a technicality so they had to fix and re-lodge... it's now sitting with examiner 2. I'm just trying to ignore it and wait till it's done.
 
Can anyone shed light on the following clause in an OTP. It's for a brand new development, no transfer duty
-----------------------------------------
17. WARRANTIES
17.1. The Seller warrants that they are not registered as Vat Vendors for purposes of this transaction. Should the South African Revenue Services deem that the transaction will attract Vat, the amount shall be payable by the Purchasers on demand by the Conveyancer and prior to registration of transfer.
 
PotatoGuardian said:
Can anyone shed light on the following clause in an OTP. It's for a brand new development, no transfer duty
-----------------------------------------
17. WARRANTIES
17.1. The Seller warrants that they are not registered as Vat Vendors for purposes of this transaction. Should the South African Revenue Services deem that the transaction will attract Vat, the amount shall be payable by the Purchasers on demand by the Conveyancer and prior to registration of transfer.
Click to expand...
Developer covering himself should sars come after him for vat.

The developer should be registered for vat as he most likely is above the compulsory vat registration threshold but hasn't bothered to register for vat. He's in for a world of hurt if sars comes after him as they will deem him liable for the vat and not the buyers.
 
PotatoGuardian said:
Can anyone shed light on the following clause in an OTP. It's for a brand new development, no transfer duty
-----------------------------------------
17. WARRANTIES
17.1. The Seller warrants that they are not registered as Vat Vendors for purposes of this transaction. Should the South African Revenue Services deem that the transaction will attract Vat, the amount shall be payable by the Purchasers on demand by the Conveyancer and prior to registration of transfer.
Click to expand...
I would cross that section out
 
signates said:
Developer covering himself should sars come after him for vat.

The developer should be registered for vat as he most likely is above the compulsory vat registration threshold but hasn't bothered to register for vat. He's in for a world of hurt if sars comes after him as they will deem him liable for the vat and not the buyers.
Click to expand...
thehuman said:
I would cross that section out
Click to expand...

Damn ok, glad I asked
 
Friggs said:
Sigh... no not yet, remember it got rejected due to a technicality so they had to fix and re-lodge... it's now sitting with examiner 2. I'm just trying to ignore it and wait till it's done.
Click to expand...

I am watching yours closely . Our property was lodged on 20/10 and now waiting for registration.

We have an addendum on both our sale and purchase to move on the 6th regardless and pay/receive occupational rent. That makes planning a little easier - too much uncertainty and nobody can commit on dates so this was the best way to approach it.

So excited to move though.
 
McGuywer said:
Stuff like this, makes this a great thread.
Click to expand...
This. Imagine buying a R1.5mil house and before you know it the developer calls you up with "Yo mate, you owe SARS R225,000 for that house". I can't believe that section would be legal even.
 
Toxxyc said:
This. Imagine buying a R1.5mil house and before you know it the developer calls you up with "Yo mate, you owe SARS R225,000 for that house". I can't believe that section would be legal even.
Click to expand...

It’s interesting because the contract looks like it’s a standard template from the estate agency. We’re signing today and crossing it out. If they fight us we’re dropping the house
 
There is no such thing as buyers remorse. You signed a binding contract. And if the agent told them the offer is final as you signed for it, it is. The agent is well within their rights to push the seller to sign. You signed a contract. The owner must decide yay or nay. If they delay the contract period will run out of time and be nul and void. Then its the seller's own fault.
 
PotatoGuardian said:
It’s interesting because the contract looks like it’s a standard template from the estate agency. We’re signing today and crossing it out. If they fight us we’re dropping the house
Click to expand...
I wonder what SARS would say if you sent them a copy of that contract with the developer's info. Because they sure as **** are skipping the tax on those sales.
 
I've forgotten how much admin this entire process can be. It feels like I am glued to my phone and probably will be for the next few weeks.

We have builders coming in to fix the fukkup in the one room where they built a single brick wall as a load-bearing wall instead of a double brick wall as was shown on the plans. I spoke to an attorney and he reckons that going after the seller who sold us this (current) place is not worth the time or money, and he said rather to just fork out the R40k to get it fixed (Surveyor fees, building costs, attorney fees to get the change registered with the deeds office) and call it school fees.

And yet, my OTP was subject to receiving approved municipal plans...somewhere someone was very crooked and got away with this, but such is life. My suspicion is that the previous owner had permission to build the extra room, and then his builder cut corners and never built the two exterior walls as double brick walls because they probably thought having an IBR sheeting roof is light enough for a thinner wall. Fukk what the approved plans say, right?
 
Sinbad said:

When Is Vat Payable on A Property Instead Of Transfer Duty

www.knightfrank.co.za www.knightfrank.co.za
.

A little out of date but it seems that vat and transfer duty are mutually exclusive.
Click to expand...

This is correct. If a property is being disposed as the supply of goods by, for example, a developer (as that is where they earn their income), then the developer is obliged to charge VAT. If a transaction relating to immovable property is VATable, then there is no transfer duty payable.

When developers advertise a property as "no transfer duty payable", this means that VAT is payable. For a property below R1m, then you are actually worse off because the transaction wouldn't otherwise be subject to transfer duty based on the current exemptions. There is a sweet spot where a VAT transaction makes sense.
 
So, property registration and transfer and all those fees. Does anyone have a good calculator or something one can use? I've seen various ones, and the numbers they come up with varies GREATLY. I've seen some things tell me on a loan of R810,000 it'll be R36k and others go as high as R53k. Shouldn't it be a set amount? Also, I see a bunch of banks offer you money back, like no initiation fees and so on. Worth it?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X