Offer to purchase question

zerocool2009 said:
If its empty, ask the owner to move in sooner and pay occupational rent (stated in the OTP)
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It's empty but the seller is asking R18k per month for rental :crying:. I suppose I could re-negotiate the amount but it's still a lot of money going into someone elses account, especially if transfer takes a few months.
 
Ouch. I have heard it is standard practice to charge 1% of the purchase price for rent.

We were lucky enough to negotiate about 0.4% of purchase price on the occupational rent.

Sellers were going to move into their new retirement place anyway and we were going to stay in our old rental place until the purchase went through. So it would have been mostly their loss of a few thousand per month if they wanted a crazy price.

In the end the occupational rent was actually cheaper than our rent at the old place so it was a no brainer for us.
The old people are happy for the extra bucks every month and we get to enjoy our new place so long.
 
Napalm2880 said:
It's empty but the seller is asking R18k per month for rental :crying:. I suppose I could re-negotiate the amount but it's still a lot of money going into someone elses account, especially if transfer takes a few months.
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What I've learned from this purchase: never pay occupational rent.

Seller in my case is dragging heels with fixing a few things which are needed for the certificates. Delaying the transfer is ok in her case because she gets extra occupational rent over and above the agreed sale amount. It is hurting me though.

If the property is standing vacant, it's in the seller's interest to get their end of the deal together as quickly as possible, so that they can get paid out.

There's also no opportunity to raise issues like "who broke what" if there's a toilet leak or whatever. All completely the seller's responsibility if you don't take occupation before transfer.
 
zerocool2009 said:
My house structural insurance is via FNB insurance. The only perk is 15% back monthly in eB
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I also took building insurance with FNB. It's still very new (only been available for the last 6 months) and it's a bit of a hassle getting through to them because the application form on the website and via the FNB app are incorrectly routed to FNB life insurance :X3: but certainly worth the effort.

To compare rates on my 2.65 mil house:
Outsurance 875pm, excess of R2,630, yikes! since I'm an existing customer :mad:
Momentum R839pm, can't remember the excess
Discovery 753, excess of R750
FNB R495, excess of R1000

So VERY competitive from FNB, and the perk of 15% back on premiums in eBucks is a nice bonus.
 
newby_investor said:
What I've learned from this purchase: never pay occupational rent.

Seller in my case is dragging heels with fixing a few things which are needed for the certificates. Delaying the transfer is ok in her case because she gets extra occupational rent over and above the agreed sale amount. It is hurting me though.

If the property is standing vacant, it's in the seller's interest to get their end of the deal together as quickly as possible, so that they can get paid out.

There's also no opportunity to raise issues like "who broke what" if there's a toilet leak or whatever. All completely the seller's responsibility if you don't take occupation before transfer.
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Also very true. Especially when they opt for a high occupational rent amount.

In our case we actually win and the seller can't drag his feet in this case because his retirement village purchase is directly connected to the sale of the current property. And they are also paying occupational rent that side.
 
APoc184 said:
Ouch. I have heard it is standard practice to charge 1% of the purchase price for rent.

We were lucky enough to negotiate about 0.4% of purchase price on the occupational rent.

Sellers were going to move into their new retirement place anyway and we were going to stay in our old rental place until the purchase went through. So it would have been mostly their loss of a few thousand per month if they wanted a crazy price.

In the end the occupational rent was actually cheaper than our rent at the old place so it was a no brainer for us.
The old people are happy for the extra bucks every month and we get to enjoy our new place so long.
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1% would be crazy...R20k on a 2Mil house? lmao
 
Napalm2880 said:
Anyone got an idea on transfer times in JHB at the moment? I sign the paperwork at the transfer attorneys tomorrow and I'd like to get an idea on when we'll move in.
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I signed paperwork on 23 December 2020, the attorney expects transfer by end March 2021. Hope that helps.
 
I would offer the owner half that. It's more than what he's going to earn with the place standing empty for two months.
 
Napalm2880 said:
Anyone got an idea on transfer times in JHB at the moment? I sign the paperwork at the transfer attorneys tomorrow and I'd like to get an idea on when we'll move in.
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Deeds office process. From lodgement to registration is 10 days.

However the attorneys could sit on the paperwork if they feel like it.

Don't leave it up to chance. Negotiate a date when registration and occupancy should take place
 
rietrot said:
Deeds office process. From lodgement to registration is 10 days.

However the attorneys could sit on the paperwork if they feel like it.

Don't leave it up to chance. Negotiate a date when registration and occupancy should take place
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It's hard fixing a registration date as that is in the hands of the attorneys and deeds office. I guess you could specify a preferred date though.
 
Speedster said:
It's hard fixing a registration date as that is in the hands of the attorneys and deeds office. I guess you could specify a preferred date though.
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I agreed to a date with the seller for when I wanted my house. We just told the attorneys to make it happen. It ended up registering a few days earlier and I didn't ask the seller occupational rent, occupation happened on the agreed upon date.

I also had to give notice at my old place and had to be out.
 
rietrot said:
I agreed to a date with the seller for when I wanted my house. We just told the attorneys to make it happen. It ended up registering a few days earlier and I didn't ask the seller occupational rent occupation happened on the agreed upon date.

I also had to give notice at my old place and had to be out.
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First prize is if, as in your case, both parties can be mature adults about the whole process. Sadly this isn't usually the case. People get all sort of stupid ideas and lose their heads though.
 
Toxxyc said:
I would offer the owner half that. It's more than what he's going to earn with the place standing empty for two months.
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The real issue with moving in before registration is that we want to do renovations and that becomes a problem contractually.

To complicate matters further, the wife is pregnant and due mid March! So if the stars align we can get the registration to go through in the next two weeks and then have two weeks to complete renovations. Wish me all the luck in the world with this one chaps!
 
APoc184 said:
Jip. And it is probably the case with @Napalm2880. Guessing purchase price is around R1.8m which explains the R18k rent.
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The rate the seller asked for was 0.7% on a R2.65m house. The agent mentioned that this is the rate he advised the seller to use and is kindof industry standard.

For those new to buying a house and following this thread, Occupation Rent in most cases is very negotiable - even after the OTP is signed. Especially if there are no tenants and the house is standing empty.
 
Napalm2880 said:
The real issue with moving in before registration is that we want to do renovations and that becomes a problem contractually.

To complicate matters further, the wife is pregnant and due mid March! So if the stars align we can get the registration to go through in the next two weeks and then have two weeks to complete renovations. Wish me all the luck in the world with this one chaps!
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This. My wife also wanted to redo the kitchen but we didn't get as big a bond as we needed, so we have to make do with what's there.

Transfer still hasn't been lodged and I'm writing to you from the waiting room of the hospital now, so with a newborn at home there won't be renovations happening for quite a few months yet.

I can't figure out why all major life events seem to want to happen at the same time...
 
newby_investor said:
This. My wife also wanted to redo the kitchen but we didn't get as big a bond as we needed, so we have to make do with what's there.

Transfer still hasn't been lodged and I'm writing to you from the waiting room of the hospital now, so with a newborn at home there won't be renovations happening for quite a few months yet.

I can't figure out why all major life events seem to want to happen at the same time...
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Your sperm shared your excitement
 
newby_investor said:
This. My wife also wanted to redo the kitchen but we didn't get as big a bond as we needed, so we have to make do with what's there.

Transfer still hasn't been lodged and I'm writing to you from the waiting room of the hospital now, so with a newborn at home there won't be renovations happening for quite a few months yet.

I can't figure out why all major life events seem to want to happen at the same time...
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All the best with the new born
 
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