Offer to purchase question

[Speedster]

Thanks, we are not married CoP. So if I understand you correctly we can put both our names on the OTP - but the actual bond application can only be for my name...? We would like to have both our names on the deed.

Best bet is to contact an originator. They'll look at your financial positions and give an informed opinion

 

[newby_investor]

Thanks, we are not married CoP. So if I understand you correctly we can put both our names on the OTP - but the actual bond application can only be for my name...? We would like to have both our names on the deed.

The names in the OTP will end up on the bond and the deed as well. You just don't declare any income from your wife's side, so the affordability is calculated purely on your own salary.

This is what I did - my wife is a photographer and makes a bit, but it's very erratic. Just filled in her income as zero on bond applications.

 

[prod]

The names in the OTP will end up on the bond and the deed as well. You just don't declare any income from your wife's side, so the affordability is calculated purely on your own salary.

This is what I did - my wife is a photographer and makes a bit, but it's very erratic. Just filled in her income as zero on bond applications.

Thanks for the advice!

 

[azbob]

You put in the offer with a suspensive clause - that the offer is subject to the sale of your existing property.

So if you have any regrets about your offer being accepted, you can just say “oh I’m sorry, struggling to sell my property”.

 

[PotatoGuardian]

Thanks for the advice!

I am a sole proprietor. https://www.powerbond.co.za/ was awesome and was realistic about our expectations. Ended up with 100% bond and good rate.

 

[Sinbad]

So if you have any regrets about your offer being accepted, you can just say “oh I’m sorry, struggling to sell my property”.

Normally there is a timeframe specified.

 

[newby_investor]

Normally there is a timeframe specified.

There's also normally a continued marketing clause, where if another buyer comes along that doesn't need to sell a property, then the seller can accept their offer over yours.

 

[Sinbad]

There's also normally a continued marketing clause, where if another buyer comes along that doesn't need to sell a property, then the seller can accept their offer over yours.

Indeed - usually as long as there's no suspensive conditions on the 2nd offer

 

[Toxxyc]

OK so update. I met with the owner, we discussed a price. I got a pre-qualification number on my salary for R1.15mil. He wants R1.2 mil for the house. He wants a VERY fair price, considering the house was valued almost 4 years ago for R1.25mil, and the municipal value on the place is R1.15. The house is worth more.

Anyway, so he said I can buy the house from him on paper for R1.15. The additional R50k he wants I then have to pay back over the course of the next few years. The kicker - I'm getting that R50k "loan" interest free.

So I agreed to those terms, we met up on Saturday and the paperwork is signed. Loans are already applied for and now I'm just waiting for the bond registration. Super fast. The lawyers they are using apparently knows people "on the inside" so they say I can expect registration of the property in my name by middle March already.

 

[rietrot]

OK so update. I met with the owner, we discussed a price. I got a pre-qualification number on my salary for R1.15mil. He wants R1.2 mil for the house. He wants a VERY fair price, considering the house was valued almost 4 years ago for R1.25mil, and the municipal value on the place is R1.15. The house is worth more.

Anyway, so he said I can buy the house from him on paper for R1.15. The additional R50k he wants I then have to pay back over the course of the next few years. The kicker - I'm getting that R50k "loan" interest free.

So I agreed to those terms, we met up on Saturday and the paperwork is signed. Loans are already applied for and now I'm just waiting for the bond registration. Super fast. The lawyers they are using apparently knows people "on the inside" so they say I can expect registration of the property in my name by middle March already.

So much dodgy stuff. But okay.

Middle March is slow.

 

[Dark Agent]

So much dodgy stuff. But okay.

Middle March is slow.

I was suppose to say the same thing, middle of March is a standard timeframe of most bonds that also requires a cancellation on existing bonds.

Also it is illegal not to declare in on paper.

My bond time frame SLA is 2 1/2 months which includes cancellation and the holiday closures.

 

[Toxxyc]

Oh. Well, I'm happy with how it goes. I've also been told middle March is because of the holiday closures. Lawyers only open middle Jan so it makes sense.

 

[Dark Agent]

Oh. Well, I'm happy with how it goes. I've also been told middle March is because of the holiday closures. Lawyers only open middle Jan so it makes sense.

It just when you used "on the inside" it triggered us.

Just a question did you consider transfer cost, bond registration and transfer duty?

Also I will advice you declared the cost as R1.2m and have a delay payment deposit of R50000 that payable in x months at no interest.

 

[Toxxyc]

Oh when I said "on the inside" I didn't mean they're doing anything dodge. They apparently know someone working in there who checks the paperwork and stuff out of office to make sure it's exactly correct before they can submit, and so on.

I considered the other stuff, yes. It's being financed as well, apparently. I have a bond originator who's helping me.

 

[bokka1]

OK so update. I met with the owner, we discussed a price. I got a pre-qualification number on my salary for R1.15mil. He wants R1.2 mil for the house. He wants a VERY fair price, considering the house was valued almost 4 years ago for R1.25mil, and the municipal value on the place is R1.15. The house is worth more.

Anyway, so he said I can buy the house from him on paper for R1.15. The additional R50k he wants I then have to pay back over the course of the next few years. The kicker - I'm getting that R50k "loan" interest free.

So I agreed to those terms, we met up on Saturday and the paperwork is signed. Loans are already applied for and now I'm just waiting for the bond registration. Super fast. The lawyers they are using apparently knows people "on the inside" so they say I can expect registration of the property in my name by middle March already.

You will have to include the R50 000 in the purchase price, it is fraud not to do it.

 

[beefymoocow]

Oh when I said "on the inside" I didn't mean they're doing anything dodge. They apparently know someone working in there who checks the paperwork and stuff out of office to make sure it's exactly correct before they can submit, and so on.

I considered the other stuff, yes. It's being financed as well, apparently. I have a bond originator who's helping me.

Is it on the contract where you have to pay R50k?

 

[Toxxyc]

No, the addition is still to be discussed between me and the seller. Like I said, I've known him for a while (about 20 years) and there's a lot of trust in this deal.

 

[beefymoocow]

No, the addition is still to be discussed between me and the seller. Like I said, I've known him for a while (about 20 years) and there's a lot of trust in this deal.

Yeah you probably can get away with it. It will be hard for Sars to catch you since it’s only 50k. You might just pay alittle bit of more tax when you sell your property since the official cost is 1.150 mil and not 1.2

 

[Toxxyc]

Eh. Later's issue. I'm actually a bit miffed about the R50k since it's a tiny amount, and it won't reflect anywhere (I'll be paying it off a few hundred each month, for example), so he could have just as well left it. My opinion.

 

[newby_investor]

Eh. Later's issue. I'm actually a bit miffed about the R50k since it's a tiny amount, and it won't reflect anywhere (I'll be paying it off a few hundred each month, for example), so he could have just as well left it. My opinion.

Usually you have to include in the sale agreement all payment arrangements between yourself and the seller. It's to avoid people "agreeing" on a lower price then doing favours some other way, for purposes of getting lower transfer duties etc.

SARS is pretty good at figuring things out, I wouldn't take the risk personally. I think it is allowable if you state it in the contract along with the monthly payments etc.