Offer to purchase question

[marysms]

Here's one for the legal peeps.

If an OTP was signed in March 2021 but transfer registration only occurs 18months later (July 2022). Will you pay less transfer duties (SARS) as perhaps it was lowered during the 2022/2023 year?
But you will pay more attorney fees as those generally increase?

As the Bond and transfer costs are stipulated by the Conveyancing: Conventional Deeds (Act 47/1937): Guideline of Fees which relates to purchase price.

Article showing the increase this year

AN INCREASE IN CONVEYANCING FEES FROM 1 MAY 2021 | Miltons Matsemela

www.miltons.law.za

Transfer "duty is payable within six (6) months from the date of acquisition" otherwise you will be charged a penalty/interest. So the acquisition date is usually considered to be the day the OTP is accepted and also remember Transfer Duty receipt is required for the transfer process.

So just get legal guidance from transfer attorney, otherwise you might end up paying monies to SARS.

 

[I.am.Sam]

so got a bond with FNB

got them to give me the 50% discount on lawyer fees

got a nice saving of about R14k

 

[TechGirl04]

Just got our building inspection report back - 212 pages. Whoever recommended Jean-Marc at Home Inspection Services to me, thank you! He was fantastic and the service was well worth the money spent. I'll never buy another house without doing a full building / home inspection again. What an eye opener!

 

[RonSwanson]

Just got our building inspection report back - 212 pages. Whoever recommended Jean-Marc at Home Inspection Services to me, thank you! He was fantastic and the service was well worth the money spent. I'll never buy another house without doing a full building / home inspection again. What an eye opener!

What was the cost? And Sqm?

 

[TechGirl04]

What was the cost? And Sqm?

401m2 under roof but the inspection was for the whole property / piece of land. We did a master inspection for R8000 but I think their normal inspection is R4000. We included a favorable building inspection report as a suspensive clause in our OTP.

 

[RonSwanson]

401m2 under roof but the inspection was for the whole property / piece of land. We did a master inspection for R8000 but I think their normal inspection is R4000. We included a favorable building inspection report as a suspensive clause in our OTP.

Wow. Agreed that 4K is about right, then again that's a big property under roof. How big is the plot?

 

[PhireSide]

Wow. Agreed that 4K is about right, then again that's a big property under roof. How big is the plot?

We paid around R5k for inspection of a 130m² property a few years back, and it was only twenty pages or so long.

@TechGirl04 got the bargain of the century in my eyes!

 

[TechGirl04]

Wow. Agreed that 4K is about right, then again that's a big property under roof. How big is the plot?

It's 991m2.

 

[Steamy Tom]

Just got our building inspection report back - 212 pages. Whoever recommended Jean-Marc at Home Inspection Services to me, thank you! He was fantastic and the service was well worth the money spent. I'll never buy another house without doing a full building / home inspection again. What an eye opener!

its a pleasure

 

[Aeryn23]

Need advise on a situation. Found a house that I like. The seller is currently sorting out the house plans. The garage is built over the front boundry line so they need to get the front boundry line relaxed and updated plans approved. Apparently council lost the original set of plans and then they did renovations, so new pieces of the house (and garage) need to be added. An architect has drawn up the new plans already and I've seen them.

What would make council not accept a boundry line relaxation?

How big is the risk for me as the buyer if I specify that the sale is conditional on plans and boundry relaxation being approved?

 

[zerocool2009]

Need advise on a situation. Found a house that I like. The seller is currently sorting out the house plans. The garage is built over the front boundry line so they need to get the front boundry line relaxed and updated plans approved. Apparently council lost the original set of plans and then they did renovations, so new pieces of the house (and garage) need to be added. An architect has drawn up the new plans already and I've seen them.

What would make council not accept a boundry line relaxation?

How big is the risk for me as the buyer if I specify that the sale is conditional on plans and boundry relaxation being approved?

If its build on a “servatiet” the owner or previous owners build without approved plans

Walk away! It might become a nightmare

 

[Gtx Gaming]

Need advise on a situation. Found a house that I like. The seller is currently sorting out the house plans. The garage is built over the front boundry line so they need to get the front boundry line relaxed and updated plans approved. Apparently council lost the original set of plans and then they did renovations, so new pieces of the house (and garage) need to be added. An architect has drawn up the new plans already and I've seen them.

What would make council not accept a boundry line relaxation?

How big is the risk for me as the buyer if I specify that the sale is conditional on plans and boundry relaxation being approved?

Find another house lol

 

[Aeryn23]

If its build on a “servatiet” the owner or previous owners build without approved plans

Walk away! It might become a nightmare

The title deed says this



Does this mean that ONE of the boundry walls (side or back) must be at least 1.89m away from the house wall?

 

[zerocool2009]

The title deed says this

View attachment 1157512

Does this mean that ONE of the boundry walls (side or back) must be at least 1.89m away from the house wall?

I think most properties or buildings must be 1m away from the boundary line. And in this case 1.89m away. I dont think you can relax a boundary “line”, but I could be wrong!

Sterkte met die ene!

 

[SoldierMan]

I think most properties or buildings must be 1m away from the boundary line. And in this case 1.89m away. I dont think you can relax a boundary “line”, but I could be wrong!

Sterkte met die ene!

The one side of our house and garage make up the boundary wall, but it is facing a green space/walk through (not sure what the official term is) area so no neighbour on that side. No windows obviously allowed in that wall.

 

[Tman543]

Need advise on a situation. Found a house that I like. The seller is currently sorting out the house plans. The garage is built over the front boundry line so they need to get the front boundry line relaxed and updated plans approved. Apparently council lost the original set of plans and then they did renovations, so new pieces of the house (and garage) need to be added. An architect has drawn up the new plans already and I've seen them.

What would make council not accept a boundry line relaxation?

How big is the risk for me as the buyer if I specify that the sale is conditional on plans and boundry relaxation being approved?

You looking at +-12 months extra to get that plans approved (If they do get it right), I reckon they won't and they will have to rebuild that part of the garage.

A relative of mine. property's transfer has been stuck due to waiting on approved plans for a few months now. Seller also built without plans. The municipality are more strict with those cases, if the building does not meet the Municipality rules they will have to renovate to get the plans approved.

 

[Praemon]

401m2 under roof but the inspection was for the whole property / piece of land. We did a master inspection for R8000 but I think their normal inspection is R4000. We included a favorable building inspection report as a suspensive clause in our OTP.

I definitely want to do the same thing, but with the OTP suspensive clause, how subjective is it? For example, what is considered "favourable" and are you able to re-negotiate the price if something comes up that wasn't mentioned and it's an unexpected expense?

 

[Other Pineapple Smurf]

Need advise on a situation. Found a house that I like. The seller is currently sorting out the house plans. The garage is built over the front boundry line so they need to get the front boundry line relaxed and updated plans approved. Apparently council lost the original set of plans and then they did renovations, so new pieces of the house (and garage) need to be added. An architect has drawn up the new plans already and I've seen them.

What would make council not accept a boundry line relaxation?

How big is the risk for me as the buyer if I specify that the sale is conditional on plans and boundry relaxation being approved?

Took me two years to get a departure order for the building extensions done by a previous owner.

The problem in my street is everybody has extended their garages over the building line as all house plans were destroyed in a fire. So everyone assumed they can do what they want.

They are all wrong.

The City Of Cape Town has enough records left to determine what was built without plans in my neighbourhood as they have historic aerial photographs.

So you can get away with internal alterations, but not external extensions.

I will never buy a house again without approved plans.

 

[TechGirl04]

I definitely want to do the same thing, but with the OTP suspensive clause, how subjective is it? For example, what is considered "favourable" and are you able to re-negotiate the price if something comes up that wasn't mentioned and it's an unexpected expense?

Within reason. And it's a negotiation with the seller. For example, if extensive damp issues are found then I'd see that as a major issue and either get the seller to fix it or renegotiate the price or pull out of the deal. However, if one window has a small crack and you try to claim it's "not favorable" over that then you might get some uphill from the agent and seller.

If you add it to the OTP, you have the seller hooked in so it allows you to specify the time you need for the inspection and your decision (within reason) without worrying about competing with another offer and wasting your time and money.

 

[Steamy Tom]

When I pulled out of my deal due to the report we didnt even discuss the details of it, I simply told them the report was unfavourable and I would not be proceeding with the purchase, if I recall I sent them one or two snippets with the bigger issues like the incorrect roofing issues etc. They tried to get hold of the report, to which I told them they can have it if they pay me what I paid for it.

Obviously as mentioned you wouldn't pull out using this over small issues, that should just be common sense, for bigger issues you could negotiate or have them fix it etc.