Offer to purchase question

[Mike Hoxbig]

From our experience it has to be a written counter offer. Verbal or Whatsapp leaves to many loopholes.
And then yes. The original offer lapses. Just give written notice as well that you do not accept the counter offer and would no longer like to pursue the property.

A counter offer would require a change to the OTP (amount), and would need both parties to initial before it becomes binding.

So basically the offer doesn't lapse until the OTP changes, which is why there's verbal negotiation ahead of that...

 

[Sir Bob]

Is the OTP signed yet? If not give the agent 24 hours to get it signed or no deal. I would guess the weekend is the time most people have to go house hunting. Agent will probably use your offer to push for a higher price from the other potential buyers.

They probably chose Monday so that they can maximize the marketing over the weekend and if that fails then only on Monday they will present the offer to the seller to sign

Thanks we will give them 48 hours so we dont seem like we rushing them.
I agree that she wants to use our offer to try get other higher offers.

 

[Quintrix]

2 questions for the property purchasing experts.

1. The Q that started this thread does a counter offer from the seller automatically cancel the orginal offer?
2. How long should the offer stay open for, the agent is trying to get me to leave the offer open from today until monday night. This just feels to long and I would like to know whats going on by latest Suday night.

1. No. Not if it is not written and signed by both parties
2. You dictate but normally 24-48h and this must be stipulated. If you put in an offer it means to some extend that your heart is in the deal. Don't ever include the weekend. They will use your offer to as proof to get higher offers from other buyers over the weekend.
You will waste the weekend while you could have been looking at other properties and you extend your raised anxiety levels unnecessarily.

The seller has been committed to this process/sale much longer than you and "buying" time benefits them

 

[Sir Bob]

Thanks for

Thanks we will give them 48 hours so we dont seem like we rushing them.
I agree that she wants to use our offer to try get other higher offers.

The agent has responded that she thinks the seller will ask for an extension. I read this as she will advise the seller to ask for an extention so she can see what happens over the week end.

 

[MidnightZA]

Thanks for

The agent has responded that she thinks the seller will ask for an extension. I read this as she will advise the seller to ask for an extention so she can see what happens over the week end.

The agent is not a mind reader.

Sign the OTP with the 48hr deadline. The agent has to present the offer to the seller. If the seller wants to see what happens over the weekend it can be given to you in writing (signed by the seller)

 

[Other Pineapple Smurf]

Seeing some nice movement on my action history now, Did see I was partly to blame for a slow start as in all of my excitement I neglected to follow up with the correct people when things happened to cause them to be in a hurry-up-and-wait situation.

We really hope to get the place before Christmas now.

 

[RonSwanson]

Thanks for

The agent has responded that she thinks the seller will ask for an extension. I read this as she will advise the seller to ask for an extention so she can see what happens over the week end.

Tell the agent to get with the program. Your offer is time-dependent because you have other places listed second and third on your shortlist, they aren't going to stop their process for their seller. They either accept or reject, it's as simple as that, so if the latter you move on with your life. IMHO 24 hours is even too much time, especially if acceptance is dependent upon price. 48 hours max if they need to consult their attorney to go over the final details (like suspensive clauses etc.). But if that's the case, then it's clear that they do not trust the agent, or there is far too much fine print, neither reflect well on the agent.
If I were you, I would sign and present the offer with a lapse of midnight tonight. The agent is bound by law to present it.

Edit: Even if you walk away tomorrow, and have not found something else, chances are that they will get back to you on Monday, because they know that you are interested. And remember, when they come to you, it's on your Ts and Cs, you can even offer lower. Show me your poker face!

 

[aqua02]

Just a quick question to those who have gone through this:
All docs have been signed, COCs have been received, lawyers say they are ready to lodge. I then reminded them that my otp requested that the owner produces updated approved plans on or before registration.

They have now came back with a suggestion that I let registration go through and they will hold back a certain amount of money until the sellers have produced the plans. Is this a good idea?
I don’t want to deal with all of this after the house has been registered but I am concerned that the bank guarantee is valid for 90 days. Will the bank not retract the bond approval if transfer has not taken place after the said 90 days?

What’s the best way to proceed?

 

[zerocool2009]

Just a quick question to those who have gone through this:
All docs have been signed, COCs have been received, lawyers say they are ready to lodge. I then reminded them that my otp requested that the owner produces updated approved plans on or before registration.

They have now came back with a suggestion that I let registration go through and they will hold back a certain amount of money until the sellers have produced the plans. Is this a good idea?
I don’t want to deal with all of this after the house has been registered but I am concerned that the bank guarantee is valid for 90 days. Will the bank not retract the bond approval if transfer has not taken place after the said 90 days?

What’s the best way to proceed?

I seen simple examples of this in sectional title. Things not on spec.... money withheld... registration took place.... and 2 years of court battles that followed!

If its not on spec (the plans), the bank should have stated that in their clause.

 

[aqua02]

I seen simple examples of this in sectional title. Things not on spec.... money withheld... registration took place.... and 2 years of court battles that followed!

If its not on spec (the plans), the bank should have stated that in their clause.

Thanks for your response!
The bank did not state this in their clause but it is stated in the OTP, which makes it a binding clause.

My question is since it is a requirement that updated plans be produced, is it a good idea to proceed with registration and allow a portion of the proceeds be held back by the lawyers?

 

[zerocool2009]

Thanks for your response!
The bank did not state this in their clause but it is stated in the OTP, which makes it a binding clause.

My question is since it is a requirement that updated plans be produced, is it a good idea to proceed with registration and allow a portion of the proceeds be held back by the lawyers?

To be honest with you. If you KNOW the plans and buildings aint on spec. If you approve, the seller wont worry any more, and its a ticking timebomb for you to fix. Lawyers can only do so much, and they will smile as they got more work to chase things up (at a price).

Its your call. I know a friend who bought, the same saga, it took 3 years to get sorted (JHB house -> COJ department).

Sterkte met daai call ....

If anyone buys property, make it an condition that approved plans EXIST ! You dont want nasty surprises later

 

[Mojo32]

Hey guys.

I went to go and view a property yday. Liked what I saw and put in the offer. I'm a first time home buyer so got a few questions:

The agent came back with the OTP the she pre populated.

The OTP states that the house will be sold voetstoots.

I have a probe with this as the agent is still waiting on the owners to furnish her with the list of defects.

She she's they will ultimately be responsible to have the defects fixed.

My question is should the defects be stated in the OTP and a clause that says the seller is ultimately responsible to fix this?

I really like the property but don't want to be taken for a ride

I've told her that I'll hold off on signing the OTP until it's been updated with the defects and clause stating that the sellers will be responsible to fix the defects.

Any advice?

 

[Quintrix]

Hey guys.

I went to go and view a property yday. Liked what I saw and put in the offer. I'm a first time home buyer so got a few questions:

The agent came back with the OTP the she pre populated.

The OTP states that the house will be sold voetstoots.

I have a probe with this as the agent is still waiting on the owners to furnish her with the list of defects.

She she's they will ultimately be responsible to have the defects fixed.

My question is should the defects be stated in the OTP and a clause that says the seller is ultimately responsible to fix this?

I really like the property but don't want to be taken for a ride

I've told her that I'll hold off on signing the OTP until it's been updated with the defects and clause stating that the sellers will be responsible to fix the defects.

Any advice?

Options
1. Get a professional to check the place out
2.add your own list of things you see
3.sign subject to your own list and sellers list


You may adjust/amend OTP before signing. Put it on paper (on the OTP) and sign next to it

The agent is not your friend. Don't believe a word they say. Put more trust in a word they write

 

[McGuywer]

Options
1. Get a professional to check the place out
2.add your own list of things you see
3.sign subject to your own list and sellers list


You may adjust/amend OTP before signing. Put it on paper (on the OTP) and sign next to it

The agent is not your friend. Don't believe a word they say. Put more trust in a word they write

This is really great advice for any buyer.

 

[TechGirl04]

Just a quick question to those who have gone through this:
All docs have been signed, COCs have been received, lawyers say they are ready to lodge. I then reminded them that my otp requested that the owner produces updated approved plans on or before registration.

They have now came back with a suggestion that I let registration go through and they will hold back a certain amount of money until the sellers have produced the plans. Is this a good idea?
I don’t want to deal with all of this after the house has been registered but I am concerned that the bank guarantee is valid for 90 days. Will the bank not retract the bond approval if transfer has not taken place after the said 90 days?

What’s the best way to proceed?

What did you end up doing with this situation?

 

[Solitude]

A little bit off topic. I'm selling a house now and the estate agent is asking for my IRP5. Is that normal?

I sent her a message, asking her why she needs it but she hasn't answered yet. I can't see why they would need that.

 

[Sepeng]

A little bit off topic. I'm selling a house now and the estate agent is asking for my IRP5. Is that normal?

I sent her a message, asking her why she needs it but she hasn't answered yet. I can't see why they would need that.

Ey?

Beyond possibly a tax number I cannot see any reason for them asking for this.
I mean you can be unemployed and sell a house.

 

[Solitude]

Ey?

Beyond possibly a tax number I cannot see any reason for them asking for this.
I mean you can be unemployed and sell a house.

Thanks, I thought exactly the same. Will just send my tax number.

 

[Sepeng]

Only reason could be, they'll use the information to try sell you a place or simply inundate you with offers.

 

[Steamy Tom]

A little bit off topic. I'm selling a house now and the estate agent is asking for my IRP5. Is that normal?

I sent her a message, asking her why she needs it but she hasn't answered yet. I can't see why they would need that.

they want to see your annual earnings to pre-qualify you would be my guess