Offer to purchase question

Alright, so agent does not want to budge. She says our offer is best on table. So I guess it's going through! I hope...

OK, another stupid question. What happens when they accept our offer, but we don't get the interest rate we want? Can I deny all bank offers and then the OTP falls through?

zerocool2009 said:
www.property24.com

Property valuations and prices for homes in South Africa : Property24.com

Property valuations, prices, trends and statistics for properties in South Africa.
www.property24.com www.property24.com

Enter the street name, and off you go. I can confirm all my properties are spot on listed.(as in the price I bought it for with date)
Click to expand...

The house we want to buy is on there, but with no price listed.

The one next door was sold for R40k more than I offered now, 13 years ago. So at least I know I'm not buying in a **** place.
 
Toxxyc said:
Alright, so agent does not want to budge. She says our offer is best on table. So I guess it's going through! I hope...

OK, another stupid question. What happens when they accept our offer, but we don't get the interest rate we want? Can I deny all bank offers and then the OTP falls through?



The house we want to buy is on there, but with no price listed.

The one next door was sold for R40k more than I offered now, 13 years ago. So at least I know I'm not buying in a **** place.
Click to expand...

You can make the OTP subject to getting a bond at or below a given interest rate. A bit late for that now if you've already got a signed agreement.

I guess you'd best just do the legwork and go to all the banks to get the best possible interest rate. If you were offered a bond but chose to reject it, then that can be considered a breach of the sale agreement. IANAL, you may want to just check with one.
 
newby_investor said:
You can make the OTP subject to getting a bond at or below a given interest rate. A bit late for that now if you've already got a signed agreement.

I guess you'd best just do the legwork and go to all the banks to get the best possible interest rate. If you were offered a bond but chose to reject it, then that can be considered a breach of the sale agreement. IANAL, you may want to just check with one.
Click to expand...
I think this might depend on the wording in the OTP.
 
We just got the signed OTP back Monday. Our originator can only start applying for bonds from tomorrow as we are needing a few more docs but already the transfer attorneys are harassing us and trying to get us to sign into their system and give us their bank details etc. Surely they should wait until we get bond approval
 
PotatoGuardian said:
We just got the signed OTP back Monday. Our originator can only start applying for bonds from tomorrow as we are needing a few more docs but already the transfer attorneys are harassing us and trying to get us to sign into their system and give us their bank details etc. Surely they should wait until we get bond approval
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Send them a mail saying you will get back to them once you have received bond approval.
 
Another nice trick is look at the sars leg. If you are making an offer, try to get into a lower bracket.
 
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zerocool2009 said:
Another nice trick is look at the sars leg. If you are making an offer, try to get into a lower bracket.
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Transfer duties work on a marginal basis. The bracket you're in is only relevant to the portion of the price that falls within that bracket.
 
Speedster said:
Transfer duties work on a marginal basis. The bracket you're in is only relevant to the portion of the price that falls within that bracket.
Click to expand...

True. In 2015 after I signed, I called the seller, asking to amend the price with R5.

The result, I saved more than R7500
 
wtg said:
Whoop! Mine was lodged this morning.
Still moving in this Saturday though - I hope this is the last moving we will do for a very long time.
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Big congrats @wtg - Now hopefully it goes through without issues.

Good luck with the move! It is so exhausting, both physically and mentally! But sure you are going to be so happy at your new home!
 
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newby_investor said:
You can make the OTP subject to getting a bond at or below a given interest rate. A bit late for that now if you've already got a signed agreement.

I guess you'd best just do the legwork and go to all the banks to get the best possible interest rate. If you were offered a bond but chose to reject it, then that can be considered a breach of the sale agreement. IANAL, you may want to just check with one.
Click to expand...
Yeah I'm worried the best I get is like Prime + 2% or whatever. In that case, I simply can't accept, because I can't afford that. I'm not being difficult, that's just really how anal I am about this deal.
 
PotatoGuardian said:
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
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/dev/null said:
What are the risks involved? Do they have insurance for these risks same like medical specialist?
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Yes - professional indemnity cover. The risks are - assume the bank wants a mortgage over the property for R3,999,999 but you make a mistake and register a mortgage for R2,999,999 - you are negligent and personally liable for the R1m difference. This is obviously a stupid example and it gets more complicated. Assume a client wants a servitude registered over portion AaBbCc but excluding TtGgHh, and you get the coordinates wrong - you are liable.

The worst example I've seen is on the property I bought. Conveyancor ought to have transferred portion 1 per the SG diagram but transferred portion 3 on the architect plans. The architect plans had the portions labelled incorrectly so the previous owner bought the wrong house. It was fixed by a deed of rectification but that assumes the seller/buyer both wanted to rectify. If the buyer scored and wanted to keep the property, the conveyancor was up the creek without a paddle.
 
Speedster said:
?
Click to expand...
The brackets for various transfer duty percentages change.
We lost out big time when we bought our place, we paid twice as much duty as we would have if we'd signed the OTP a month later.
 
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Speedster said:
Impossible
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Why impossible ?

Looking at the 2016 / 2017 tax tables as an example...

Lets say I made an offer on R1 800 000 (the transfer duty is R49 000)
If I changed my offer to R1 799 999 (the transfer duty is then only R42 000)
 
Sinbad said:
The brackets for various transfer duty percentages change.
We lost out big time when we bought our place, we paid twice as much duty as we would have if we'd signed the OTP a month later.
Click to expand...
You sure it was twice as much? IIRC duties are updated end of Feb each, but they change in pretty small increments
 
zerocool2009 said:
Why impossible ?

Looking at the 2016 / 2017 tax tables as an example...

Lets say I made an offer on R1 800 000 (the transfer duty is R49 000)
If I changed my offer to R1 799 999 (the transfer duty is then only R42 000)
Click to expand...
Incorrect. Marginal rates don't work that way. Using the 2016/2017 tables:
  • At R1 800 000 you would have paid R49 000.
  • At R1 799 999 you would have paid R48 999.92
That is a mammoth 8c saving.


TransferFees.png
 
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