Offer to purchase question

[staunchy20]

Congrats @powermzii. Nicely on a friday, some big celebrations tonight.

Finally got feedback from transfer attorney, seller will be making payment on monday for attorneys to get municipal rates clearance certificate from city of cape town so hopefully the attorney will be able to lodge 2nd week of feb.

 

[muisnes]

They agreed to sell at 100k more than our offer and we are happy to give it.

It is gonna be a long wait to Monday to get it all in writing. Being from Germany the sellers want their attorney to go over the offer before they sign.

 

[t_girl]

So finally, after 2 long months, my bond application has been approved.

I'm assuming this would be a good time to put in my 2 months notice for the termination of my rental lease... or should I rather wait until the attorneys are ready to lodge?

 

[prod]

So finally, after 2 long months, my bond application has been approved.

I'm assuming this would be a good time to put in my 2 months notice for the termination of my rental lease... or should I rather wait until the attorneys are ready to lodge?

Sho why the long wait for bond approval? But congratulations regardless!

 

[Bobbin]

Question...

I submitted an OTP on a place but was told I am the 2nd offer However with some hints that the 1st offer didn't look 100% promising, something about they may have to fork out a huge deposit to get their bond.

We received a message directly from the conveyancer on Friday that they received instructions to attend to the registration of the transfer to my name, and will be in contact once the conditions are fulfilled in the OTP.

That seems very promising to me? I doubt they would bother with me if I wasn't a primary consideration for the transfer?

 

[t_girl]

Sho why the long wait for bond approval? But congratulations regardless!

Thank you.

The valuation took quite long. The agent's offices were closed over Christmas/New Years, and there was some documentation required by the valuator. Was very stressful, glad that's over.

 

[zerocool2009]

Question...

I submitted an OTP on a place but was told I am the 2nd offer However with some hints that the 1st offer didn't look 100% promising, something about they may have to fork out a huge deposit to get their bond.

We received a message from the conveyancer on Friday that they received instructions to attend to the registration of the transfer to my name, and will be in contact once the conditions are fulfilled in the OTP.

That seems very promising to me? I doubt they would bother with me if I wasn't a primary consideration for the transfer?

Think the seller / agent would have confirmed first.

 

[Toxxyc]

Question...

I submitted an OTP on a place but was told I am the 2nd offer However with some hints that the 1st offer didn't look 100% promising, something about they may have to fork out a huge deposit to get their bond.

We received a message directly from the conveyancer on Friday that they received instructions to attend to the registration of the transfer to my name, and will be in contact once the conditions are fulfilled in the OTP.

That seems very promising to me? I doubt they would bother with me if I wasn't a primary consideration for the transfer?

Sounds like they contacted the lawyers and got the ball rolling already. That's a bit quick, considering you don't even have bond numbers or a signed OTP already.

But yes it does sound like your offer was accepted and you kinda just bought a house (if you get the bond you like, of course).

 

[Bobbin]

Think the seller / agent would have confirmed first.

Well they signed our OTP before this and that's all we know from the agent/seller. We forwarded that message to the agent and just got a thank you but not much else.

There was a clause to continue to market and that should a 2nd offer be accepted (and conditions met) the 1st offer has 72 hours to meet the conditions or else it's off the table.

We're just awaiting our bond approval now (That's of course one of the conditions) but I am told it's highly likely we will get the bond. So I guess it's either a race now between me and 1st buyer or that message means we are in the lead already somehow. (I'm told conveyancers don't waste time with that sort of stuff).

Who knows :/ I guess we just play it by ear for now.

 

[Bobbin]

Sounds like they contacted the lawyers and got the ball rolling already. That's a bit quick, considering you don't even have bond numbers or a signed OTP already.

But yes it does sound like your offer was accepted and you kinda just bought a house (if you get the bond you like, of course).

haha I hope so. Sorry I should have added our OTP was signed/accepted by the seller as well.

 

[marysms]

haha I hope so. Sorry I should have added our OTP was signed/accepted by the seller as well.

I think you need to go through your accepted OTP, should be clear under what circumstances your offer comes into effect.

I doubt the conveyance would play lotto with both offers applying for bonds at the same time. My gut feel says they invoked the 72hr clause, and the 1st offer must have lapsed.

 

[Toxxyc]

Well then yeah you made an offer and it was accepted. Congrats!

 

[Toxxyc]

Well then yeah you made an offer and it was accepted. Congrats!

 

[Fcon_Vpro]

So finally, after 2 long months, my bond application has been approved.

I'm assuming this would be a good time to put in my 2 months notice for the termination of my rental lease... or should I rather wait until the attorneys are ready to lodge?

Hard to answer. When attorneys are ready to lodge it usually takes about 2 weeks to finish provided everything goes smooth, so 2months notice only at lodgement might be too long for your rental lease or you will pay both rent and bond for a month or 2.

Easiest might be to talk to the seller about occupational rent, then give your 2months notice and move into your new house and wait for registration to officially go through.

 

[newby_investor]

Hard to answer. When attorneys are ready to lodge it usually takes about 2 weeks to finish provided everything goes smooth, so 2months notice only at lodgement might be too long for your rental lease or you will pay both rent and bond for a month or 2.

Easiest might be to talk to the seller about occupational rent, then give your 2months notice and move into your new house and wait for registration to officially go through.

I'd just be very careful about occupational rent though, unless you negotiate a cheap amount.

Seller can easily drag their feet with getting stuff done, so the process takes longer, and you end up paying them more rent. I got slightly shafted that way with this purchase.

It depends on your circumstances though, it may work out the lesser of two evils.

 

[Gozado]

I'd just be very careful about occupational rent though, unless you negotiate a cheap amount.

Seller can easily drag their feet with getting stuff done, so the process takes longer, and you end up paying them more rent. I got slightly shafted that way with this purchase.

It depends on your circumstances though, it may work out the lesser of two evils.

Could you please set that out in more detail? Looking back, what do you think caused things to go wrong, and could you have done anything to prevent it? What would you put in place for it to work out better, next time round?

 

[newby_investor]

Could you please set that out in more detail? Looking back, what do you think caused things to go wrong, and could you have done anything to prevent it? What would you put in place for it to work out better, next time round?

In my case, I was in a bit of a tough position. We were expecting our second child, and we were moving from a 1-bedroom flat (which I sold) to a 3-bedroom house (current purchase). The estimated date of transfer was expected to be pretty close to when my wife would be delivering. We thought it would be easier to move in and be settled before the baby arrived, than to possibly have to move on the transfer, while mom is in hospital, or shortly thereafter with a newborn. So I didn't have a lot of choice in the matter.

The house was previously a rental property, the previous tenant had lost job due to lockdown, and moved out, so the place was vacant. So I made an offer for occupational rent in the OTP, and that we'd like to move in once all the suspensive clauses are filled (got a bond and sold the flat basically). The seller countered with a much higher occupational rent, which I wasn't really happy with but I figured it's just going to be for a little while so not a huge deal.

The main obstruction was with the certificates of compliance. I asked for them to be done ASAP. We moved in on 16 Dec, they only got inspectors to come I think it was just before Christmas, and they sent the seller a quotation which was all of a sudden completely ridiculous, and the seller of course proceeded to object to just about everything. Obviously nothing happened over the Christmas period, eventually the seller relented after I started putting pressure on both the agent and the conveyancing attorney (I mean the total cost was less than what I'd paid for the month's occupational rent for pete's sake) and the work got done towards the end of January.

So the attorneys told me that they'll be lodging tomorrow, finally, but delays that were mostly due to the seller's being full of nonsense, cost me an extra 3-4 weeks worth of occupational rent. Which is about 30% higher than my bond payment, so it has been quite a squeeze on my budget. I'm coming through right on the seat of my pants this month.

 

[zerocool2009]

Not relavant directly to me, but my one tenant bought a place now. Yesterday got a call, they are lodging, but the tenants said their lease didn't expired yet, so they aint moving. And it expires only in 4 months. I told my tenant, let the legal side of the seller do the work. Actually sad how tenants act (who dont understand its now sold), but again, think the law is on the tenants side who rent

 

[t_girl]

Hard to answer. When attorneys are ready to lodge it usually takes about 2 weeks to finish provided everything goes smooth, so 2months notice only at lodgement might be too long for your rental lease or you will pay both rent and bond for a month or 2.

Easiest might be to talk to the seller about occupational rent, then give your 2months notice and move into your new house and wait for registration to officially go through.

I'm trying to avoid having to pay both bond and rent - I suppose I can if push comes to shove, but I'd rather avoid it. I'm buying directly from the developer - hoping this means there's less that could go wrong in the process.

I'd just be very careful about occupational rent though, unless you negotiate a cheap amount.

Seller can easily drag their feet with getting stuff done, so the process takes longer, and you end up paying them more rent. I got slightly shafted that way with this purchase.

It depends on your circumstances though, it may work out the lesser of two evils.

Thanks for the warning.

 

[PotatoGuardian]

So finally, after 2 long months, my bond application has been approved.

I'm assuming this would be a good time to put in my 2 months notice for the termination of my rental lease... or should I rather wait until the attorneys are ready to lodge?

We had a 3 month notice period on our rental. We waited until we signed all the documents with the transfer/bond attorneys before we gave notice. At the end of this month, we have to move out. Since we have lodged already we are hoping to be registered by end of next week for the latest (cutting it super close). We had no delays with our seller, they were super fast submitting everything.

That said we did have to wait for the deeds office closures over festive. But also be aware that the deeds office can close at any time if there is a COVID outbreak which can cause delays. As @newby_investor also mentioned, seller can drag their feet with certificates (which happened the first time I bought years ago. Whole process took 6 months).