Offer to purchase question

[Sinbad]

OK I got a new question. All my paperwork is in order with the lawyers now, it seems, so we're just waiting for the paperwork to be drafted so I can go sign. However, the owner called me the other day and mentioned something about paying his municipal account up-front for a few months before Tshwane will process the paperwork.

I want to know - why and what is this, and who is responsible for this money to be paid? He mentioned something along the lines of that I'll have to pay for it, because Tshwane isn't going to reimburse him for it, but it sounds like total BS to me. I'll pay all the bills once the house is in my name, and not a cent before that. Correct?

Not a ****en chance.

He must pay 3 months of his bill up front- the municipality will give him a number based on his average billing. The bills incurred between that payment and the account transfer then get offset against this deposit - this is for HIS usage over the next few months. There will be very little left to refund at the end of the process. I think my refund due is about R2k, out of a R13k clearance figure.

 

[newby_investor]

Can't the seller get a rebate from the municipality for the amount that he's prepaid which ended up being beyond the transfer date?

 

[PsyWulf]

OK I got a new question. All my paperwork is in order with the lawyers now, it seems, so we're just waiting for the paperwork to be drafted so I can go sign. However, the owner called me the other day and mentioned something about paying his municipal account up-front for a few months before Tshwane will process the paperwork.

I want to know - why and what is this, and who is responsible for this money to be paid? He mentioned something along the lines of that I'll have to pay for it, because Tshwane isn't going to reimburse him for it, but it sounds like total BS to me. I'll pay all the bills once the house is in my name, and not a cent before that. Correct?

Due to the transitional period,municipal rates are prepaid 3months in advance based on previous year's average,this is paid by the seller and charged by the transferring attorneys as part of the settlement of any outstanding amounts and fees on the property
Once the transfer is through the buyer must get a new municipal account created,at which point the prepayment from the owner is offset against the municipal bill up to the date of transfer,with the balance being refunded to him,and the buyer getting a lovely municipal bill with his next billing cycle of the pro-rata post-transfer up to the next bill

 

[Fcon_Vpro]

Bit difficult as the seller is almost a friend of the family, and I've been renting from him for 3.5 years.

Those details didn't seem to cross his mind when he asked you to pay

 

[zerocool2009]

Those details didn't seem to cross his mind when he asked you to pay

And I assume you will leave his spot spotless too! Things add up. But that’s a wild stab in the dark to ask someone.

Hope you ask for interest on your deposit also

 

[McGuywer]

Speaking about new municipal accounts.
I need to open mine at Tshwane.
www.tshwane.gov.za is broken now.
Can I only go to CBD or is there another offices I can go to?
I would rather drive 20km than face the hassles of trying to find parking in the CBD.

 

[zerocool2009]

Speaking about new municipal accounts.
I need to open mine at Tshwane.
www.tshwane.gov.za is broken now.
Can I only go to CBD or is there another offices I can go to?
I would rather drive 20km than face the hassles of trying to find parking in the CBD.

If your attorney is in pta, they would register it for free for you (that was the case in mine).

Also, I was told to wait 2 or 3 months if not registered yet (then follow up by going in yourself).

The Centurion office is clued up (or rather, it all depends who help you)

 

[Napalm2880]

Anyone heard of wood borer compliance certificates being issued in JHB? The purchaser has requested in the offer. I know this is common at the coast but not in JHB and to make it even more rediculous, our house is steel frame, so no wooden trusses. The only wood is on the doorframes and windows.

 

[Steamy Tom]

Anyone heard of wood borer compliance certificates being issued in JHB? The purchaser has requested in the offer. I know this is common at the coast but not in JHB and to make it even more rediculous, our house is steel frame, so no wooden trusses. The only wood is on the doorframes and windows.

Imo isn't a legal requirement, but can be agreed on by both parties, imo cancel it out and initial and then sign the OTP, he can counter it and you can tell him if he wants it he can pay for it

 

[TedLasso]

Anyone heard of wood borer compliance certificates being issued in JHB? The purchaser has requested in the offer. I know this is common at the coast but not in JHB and to make it even more rediculous, our house is steel frame, so no wooden trusses. The only wood is on the doorframes and windows.

What co-incidence. In Sandton area and I noticed last weekend that I guess it was these things that were moving into my wood trusses just under the roof overhangs . They make perfectly round holes. I just sprayed them with doom . Now I am thinking I need to check my roof inside

 

[Speedster]

Lawyers just let me know they're finally lodging today. Whoop whoop

 

[marysms]

Good day All, I don't know if this has been asked/answered I tried to follow the whole thread but its just too many pages and I hope you do not mind offering your guidance.

In the second week of this year I signed and offer to purchase for a house I fell in love with. My offer was the first offer on the house. On guidance of the estate agent the lapse date of the OTP was 8 days. The agent never took any initiative to get back to me and I strongly feel my offer was used to solicitor for other stronger offer.

On day 3 after signing the OTP I reach out to the agent to check on any feedback from the sellers, I was advised that the seller was considering my offer and they liked the offer.

On day 4 I followed up I was advise there was now another offer on the table which was very close to mine but the sellers liked mine, I should do a pre-qual and put in a deposit. I asked the agent to ask the sellers to respond with a counter offer so that we could negotiate. The agent never got back to me.

On day 6 I followed up with the agent, they asked me what would be my best offer, I verbally advised a figure that was slightly more than the original offer. They again advised that my offer was very close to the other offer and I stood a strong chance.

On day 7 I followed up again, I was advised that the seller was still thinking of my offer and they are considering removing the solar system from the property in order to accept my offer, I asked that the seller provide a counter offer with those conditions as I could take that into consideration again there was no response from the Agent.

On day 8 the D-Day I waited all day until 8PM the lapse time and got no response from the Agent, tried to call the Agent they did not respond.

On the next day I called the agent and they told me the offer was declined and they now had another offer on the table. I asked the agent if I could put in another offer and agent advised that the offer should be close to the asking price or should be the asking price. I advise the agent that I will be putting in another offer at Asking Price and they said that was fine. After 20 minutes when I was done completing the new offer the Agent told me that the seller just accepted another offer. Later on after an hour the Agent advised that they had submitted my offer although they had another accepted offer. The next day I received my signed offer accepted by the seller but as a back-up offer.

The agent never took initiative to give me feedback without me following up, and I feel that had the agent managed communications better, even communicating that my offer was rejected when they received the feedback from the seller on the day the seller rejected the offer could have allowed me to put in another offer before the seller accepted another offer.

Do I have any options to challenge the acceptance of the other offer on the grounds that I was never notified on time. The agent also advised that my current offer is way stronger than the other offer meaning that had the seller received it before accepting the other offer my offer would have been accepted.

What are the chance of a back-up offer being successful. The other offer is by a small business, in this climate what is the likely hood of a small business getting close to 100% bond?

 

[Toxxyc]

Unfortunately the seller accepted another offer, and not yours. I would rather find a different agent. Who was the agent, by the way? Doesn't seem like the agent was very forthcoming with you, and I think you're correct - they fished for a higher offer all along. Agents do that. That's why I asked specifically on ALL houses if there's an offer on the table, and if the answer was yes I'd ask exactly what the offer amount was. Most agents refused, and then I simply refused to make an offer. Some openly admitted to the offers on the table, and some offers were good while others were way too high for the properties (IMO). So work with that.

 

[marysms]

I will reveal the Agent in due course, I am just evaluating lodging a complaint as I strongly feel the Agent was somewhat unethical and not forth coming. They insisted/asked me for a pre-approval and passed on my details without consent to an OOBA agent. But from my understanding they never asked for those details from the other buyer, maybe they thought I did not afford the property, despite having told them that I already own 2 other properties and paid up my previous bond in 5 years and work for one of the big banks. NB the asking price for the property was R4Mil and I offered R3.8m and a R400K deposit, which I believed to be fair as the house needs alot of TLC.

 

[Gozado]

It sounds to me, @marysms, like you've been dealing with an unpleasant agent. Some agents really do string along all potential buyers and the seller, backwards and forwards, keeping everyone nervous with whatever means they can find, just to push the purchase price up, and thereby their commission, too. I'd also be very annoyed if an agent passed on my details to anyone without my consent (and I wonder whether there is fine print about that).

When I read your posts, and compare them with what @Toxxyc writes, the big difference seems to be that you fell in love with the property, whereas Toxxyc seems to approach each deal with a full readiness to walk away as soon as he/she doesn't think that the agent is being transparent.

Either way, the seller is surely free to accept or reject any offer. I do not think you can challenge their choice in any way.

Your first offer, and then your second offer, each stood for as long as you stated they would, and within that time the seller can "like" your offer, or not, freely. Some buyers deliberately set the offer for a very short duration, preferring to know, soon, whether or not the deal will go ahead, rather than waiting in uncertainty. Those buyers, however, are typically not emotionally attached to the particular property, nor to the deal, so that, as soon as it's clear to them that the purchase won't progress exactly the way they'd hoped, they're ready to move on quickly. Not everyone can do that.

A seller may even, in the end, choose to accept a lower offer than yours, because it makes them feel good. People don't necessarily always sell for financial reasons only, and they might have had an unexpected offer from their dear cousin, or from a gardener who intends to continue to nurture their favourite tree, etc., and decided to go with that. Once the seller has accepted one offer, the others are out (at least, as long as the financing works).

Whether or not the other purchaser will fail to raise the necessary finance, so that the seller comes back to you... that's out there in the great unknown. I hope you soon gain clarity.

 

[RonSwanson]

@marysms , unfortunately the agent played you like a fish, as @Toxxyc suggests. An 8 day validity on an OTP is simply ludicrous. There is no way that I would ever place an offer on a property that is valid for more than a few hours max, and even that is far too much time. In the old days, the offer would be physically presented to the seller and then physically withdrawn from the seller's hands if there is any indecisiveness. This is a lot more difficult in this day and age of electronic communications, but can be ensured by stating in the offer that it expires, for example, at 12H00 or at 17H00 on the day that it is presented.

I also agree with @Gozado that one should have a "poker face" when viewing or speaking about the home to the agent. Count your words, be professional and avoid any emotional expressions. It's not good to give them any indication that your heart is set on the property. They are agents for the seller and not your confidante, however nice they may seem to be. Once they pick up that your heart is set, they will play you.

 

[marysms]

Thank @RonSwanson, @Gozado, @Toxxyc for your response. This has been a great learning experience. I have bought properties before and never experienced what I went through. I wish I had stumbled upon this thread before my experience.

The greatest lesson has been, give too little time on the validity of your offer to prevent yourself from being used and avoid the emotional waiting games.

 

[RonSwanson]

Thank @RonSwanson, @Gozado, @Toxxyc for your response. This has been a great learning experience. I have bought properties before and never experienced what I went through. I wish I had stumbled upon this thread before my experience.

The greatest lesson has been, give too little time on the validity of your offer to prevent yourself from being used and avoid the emotional waiting games.

Right now, just make sure that your last offer has been withdrawn entirely. Tell the agent that you have found and shortlisted another two properties, and that you will be making offers in the next few days. You do not have to elaborate on them at all, and then bid her adieu. If the other offer falls through, they have your number, and if they do call, make a new offer for your original amount (or less ).

Now the fun part starts again, scouting for a good home. You will kiss a lot of frogs before you find your prince, but find him you surely will.

 

[Toxxyc]

Toxxyc seems to approach each deal with a full readiness to walk away as soon as he/she doesn't think that the agent is being transparent.

Bingo.

I've been dealing and fishing for deals for YEARS now. I'm a sucker for a bargain. I've learned one thing - the bargain you think is a chance of a lifetime rarely is. There's always another. That's why I skipped on several houses purely because the deal didn't "feel right". I drove past two houses I put OTPs on yesterday, totally incidentally, and thought the same thing. "Yes, would have been nice to have either one of these, but I'm glad I went with the choice that ultimately came through".

 

[Gozado]

@Toxxyc, and @RonSwanson,
and others who post here about Getting The Deal Quickly, or Walking Away: thank you for your posts. I have been influenced, and I'm glad of it, by your way of combining knowledge, experience, and your gut feeling, and simply not making yourselves available to have your time, money or emotional reserves burnt up on an agent-driven roller-coaster.