Offer to purchase question

Toxxyc said:
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?
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Transfer fees (taxes) are fixed, but the amount lawyers charge may vary a bit. Most of the calculators I've seen give very similar results (ooba, private property etc).

If you can save the initiation fees, it is definitely a win. Although the biggest win is most certainly a lower interest rate.
 
Toxxyc said:
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.
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IzZzy said:
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.
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So I clarified with the estate agent. Apparently the developer will be paying the transfer duty"because they own the land and that is what they are transferring. He said:

Agent: The email I can forward to you is fine - as the reason why we don’t indicate it in the Otp - is banks always want the purchasers to pay the transfer duties. So it prevents the bank flagging it
Agent: The email is binding and do multiple deals with the developer like this

The email states:

Hi xxxx,

This serves to confirm that the regulated transfer duty (of c. Rxxxx) will be paid by the seller/the development company we own.

There is an amount in transfer costs with the conveyancing process that would be for the purchaser's account.

I trust that serves as confirmation and clarifies.

Best regards,
xxxxx
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Speedster said:
Transfer fees (taxes) are fixed, but the amount lawyers charge may vary a bit. Most of the calculators I've seen give very similar results (ooba, private property etc).

If you can save the initiation fees, it is definitely a win. Although the biggest win is most certainly a lower interest rate.
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Yes the lower interest rate is what I'm trying to shoot for, most of all.

EDIT: That's the biggest reason I want to loan way less than what I really "qualify" for. It reassures the banks and might push it down by half a percent or so.

On a related note - we all know the OTP is binding. It says I must try get a loan within 2 weeks and and and.

Now I have a question - what if all the places come back to me with loan offers, but I don't like the interest fees on any of them? Can I refuse all and then the deal falls through? Because I'm not signing a prime + 2% type deal.
 
Toxxyc said:
Yes the lower interest rate is what I'm trying to shoot for, most of all.

EDIT: That's the biggest reason I want to loan way less than what I really "qualify" for. It reassures the banks and might push it down by half a percent or so.

On a related note - we all know the OTP is binding. It says I must try get a loan within 2 weeks and and and.

Now I have a question - what if all the places come back to me with loan offers, but I don't like the interest fees on any of them? Can I refuse all and then the deal falls through? Because I'm not signing a prime + 2% type deal.
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Usually should have a clause that buyer adds that the interest rate needs to be prime or less. Added that on mine
 
Yeah I didn't add that. A bit daft, I guess. Any way to avoid being forced to sign for a loan at like prime + anything?
 
Toxxyc said:
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?
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FWIW, on our previous purchase of R795'000 we paid R41k in fees. The conveyancing attorneys we used were NOT cheap, though, but they were efficient.
 
That's not too bad. How long ago was that?

Also, how's these fees in any way "acceptable"? R42k to do a bit of paperwork? I mean how much work could it really be?
 
Toxxyc said:
That's not too bad. How long ago was that?

Also, how's these fees in any way "acceptable"? R42k to do a bit of paperwork? I mean how much work could it really be?
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We bought here October 2018 - and selling exactly two years later :)

Everyone wants a piece of the pie. Scary that transfer fees on a house of R11mil is more than this house cost us to purchase, fees and everything included...

Not that I am buying a R11m house any time soon but ja :p

1604047693319.png
 
PhireSide said:
We bought here October 2018 - and selling exactly two years later :)

Everyone wants a piece of the pie. Scary that transfer fees on a house of R11mil is more than this house cost us to purchase, fees and everything included...

Not that I am buying a R11m house any time soon but ja :p

View attachment 943200
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You struck big. Which area?
 
wtg said:
You struck big. Which area?
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Sherwood, PE. We sold for R985k due to the boom in the market down here, although much of it has gone to fixing the municipal plans that were not reflecting what was built. Basically, the extension wasn't registered with the deeds office, and we cannot get it registered until the walls have been fixed but now we need to get cabinetmakers to remove the cupboards, floors, ceiling and a sparky to move the plugs and the builders to move the window etc etc etc.

This was because the previous seller never disclosed to us that the extension wasn't registered with the deeds office so it is now our problem to sort out.

Thereafter we need to register it with the Deeds Office and SG as well, and hopefully they will have pity on us and not require us to notify all the bond holders in the complex, otherwise we are looking at another R30k just for the attorney fees alone to send out the notices.

TL;DR - To add a row of of bricks to 6 running meters of wall could cost us between R40'000 and R70'000
 
Aaaaaand still no lodgment. 4 weeks and counting for one little thing.

We confirm that we attended the council everyday to obtain the consent for removal of the title deed conditions but the consultant working with the file was on sick leave. We will attend the council again on Monday. Lodgement will be arranged on receipt of the consent next week
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@bokka1 Does the Rates & Taxes Clearance Certificate have something like an expiry date?
Just worried that the Council will say the rates and taxes outstanding has been paid but it was 4 or 5 weeks ago and the new billing cycle has already run. Or something along those lines.
And then we start all over again with new figures requested, difference paid, new clearance certificate and and and....
 
Anyway. We are moving Sunday and at least the occupational rent is a bargain for us. So until the attorneys or the council catch a wake up.... We are renting the home we are buying.
 
APoc184 said:
Aaaaaand still no lodgment. 4 weeks and counting for one little thing.



@bokka1 Does the Rates & Taxes Clearance Certificate have something like an expiry date?
Just worried that the Council will say the rates and taxes outstanding has been paid but it was 4 or 5 weeks ago and the new billing cycle has already run. Or something along those lines.
And then we start all over again with new figures requested, difference paid, new clearance certificate and and and....
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To get rates clearance you have to prepay 4 months worth of usage.
 
Sinbad said:
To get rates clearance you have to prepay 4 months worth of usage.
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Aah thanks. Was unsure about the timeframes.

So unless there are excuses for the next 12 weeks we don't really have anything to worry about.
 
We just got registered! :D The estate agent complained it was taking too long, and somehow got the attorneys to walk it through a bit faster.

Woohoo! Does this mean we can get the keys today? Or do we have to wait for the final confirmation letter and account statement?
 
LlamaParty said:
We just got registered! :D The estate agent complained it was taking too long, and somehow got the attorneys to walk it through a bit faster.

Woohoo! Does this mean we can get the keys today? Or do we have to wait for the final confirmation letter and account statement?
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Congrats!

With our previous purchase, we received the keys the day of registration. Check with the agent, they should be able to tell you.
 
LlamaParty said:
We just got registered! :D The estate agent complained it was taking too long, and somehow got the attorneys to walk it through a bit faster.

Woohoo! Does this mean we can get the keys today? Or do we have to wait for the final confirmation letter and account statement?
Click to expand...

Congrats! Go get your keys :)
 
LlamaParty said:
We just got registered! :D The estate agent complained it was taking too long, and somehow got the attorneys to walk it through a bit faster.

Woohoo! Does this mean we can get the keys today? Or do we have to wait for the final confirmation letter and account statement?
Click to expand...

Whoop! Whoop!!!

Many congrats sir! Enjoy your home!
 
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