Offer to purchase question

The Darkness said:
I’m wondering if anyone here has a contact at the COCT rates department? I’m buying a property that is being held up by an apparent slow/backlogged rates clearance certificate. I’m trying to ascertain if I’m fact the transfer attorney has dragged on in order to buy the seller some additional occupancy rent, as I’ve been strung along now since early January.
Is this the current norm for a simple rates clearance to be processed?
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I once had a transfer attorney tell me directly he can delay the transfer as long as I want using the council.

It happened to me on the receiving end, apparently there was a "dispute" lodged with the city council and we waited about 4 months for the clearance.
 
Andrew001 said:
I've been wondering the same thing.
I discussed an idea of airbnb for a new property with a bond originator and she said it would help to secure a loan. Slightly different situation but don't see why existing rent would not count. Especially if there is a long term lease involved.
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Your rental income will be included as income as soon as you have a signed lease agreement.

More property you have leased out the more income you have.

Just one note.. never ever go to a bond originator, most bond attorney discounts and cash rewards from the bank (Upto R20k is gone) and the bank needs to charge you a higher interest rate to pay the middleman.
 
Attorneys have lodged at the deeds office. Until registration can the bank still cancel? I have used credit card to pay for the transfer and registration costs and had to increase my credit limit on the card.
 
Mojo32 said:
Attorneys have lodged at the deeds office. Until registration can the bank still cancel? I have used credit card to pay for the transfer and registration costs and had to increase my credit limit on the card.
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Up until the point where they release the funds, I think they can cancel if required.
 
Read a nice article this afternoon, we can expect 0.25% on each interest rate reviews coming up.

The next review is end March !
 
zerocool2009 said:
Increases all the way! The days of scoring (its over)
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I prefer a high interest rate. I found it much easier to find a good tenant when interest rates are high compared to when the interest rates are low.

All the good tenants just go and buy a place to stay.
 
PhireSide said:
I hope OP doesn't mind that I am shoe-horning my way in here as well.

We signed an OTP last week and sold our place a day later. Ours was in the market for 13 hours before we found the seller. They offered 98% of asking price so we accepted. It's definitely a seller's market, especially down here in PE.

We are hoping for the property we purchased to be registered before the end of the year, but understandably there will be delays, more so than when we bought two years ago, but we are in no hurry.

Best of luck to all in the same boat, and may your purchases also be smooth sailing!
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Quoting this to point out the absurdity that is buying property during a pandemic - 511 days later, we have finally registered!

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Does anyone know what recourse a seller has when the buyer has multiple bonds approved in principle but hasn't accepted any?

We accepted an offer on my wife's property and now over a month after accepting the offer to purchase we are still waiting on the buyer. The transfer attorney received the instruction probably because the buyer had bond approvals from multiple banks, lawyer also has created all the documentation and we have signed. But the buyer hasn't sent fica, etc. It's very frustrating as the property is off the market so we losing out on potential buyers who would have processed the deal properly.
 
Fcon_Vpro said:
Does anyone know what recourse a seller has when the buyer has multiple bonds approved in principle but hasn't accepted any?

We accepted an offer on my wife's property and now over a month after accepting the offer to purchase we are still waiting on the buyer. The transfer attorney received the instruction probably because the buyer had bond approvals from multiple banks, lawyer also has created all the documentation and we have signed. But the buyer hasn't sent fica, etc. It's very frustrating as the property is off the market so we losing out on potential buyers who would have processed the deal properly.
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Do you know if the bond approvals have been for at least the minimum amount stated in the bond clause on the OTP?
 
Fcon_Vpro said:
Does anyone know what recourse a seller has when the buyer has multiple bonds approved in principle but hasn't accepted any?
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The OTP will state the time the buyer has to produce an approved bond. In general it is 1 month after accepted OTP. Ask the agent to find out what's the hold up.
 
vigras rojara said:
Do you know if the bond approvals have been for at least the minimum amount stated in the bond clause on the OTP?
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My understanding is that the bonds offered by the banks are for the full amount, however no idea regarding interest rates, terms, etc. But I imagine the banks feel he can afford it or they wouldn't offer.

Tman543 said:
The OTP will state the time the buyer has to produce an approved bond. In general it is 1 month after accepted OTP. Ask the agent to find out what's the hold up.
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I have already asked my wife to ask the agent but thought I'd see if anyone has experienced this and what we can do if they don't sign their bond.

zerocool2009 said:
I think its 21 days after signing to produce an approved bond... or the otp is forfeited
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My understanding is that the otp is only forfeited if they fail to finance ie no approvals.
According to lawyer, multiple bonds have been received and buyer just needs to sign one.
That's why I'm asking what recourse we have if the buyer doesn't sign the bond.
Otherwise what is the point of otp's if there are no repercussions for buyers signing willy nilly.
 
Fcon_Vpro said:
My understanding is that the bonds offered by the banks are for the full amount, however no idea regarding interest rates, terms, etc. But I imagine the banks feel he can afford it or they wouldn't offer.


I have already asked my wife to ask the agent but thought I'd see if anyone has experienced this and what we can do if they don't sign their bond.


My understanding is that the otp is only forfeited if they fail to finance ie no approvals.
According to lawyer, multiple bonds have been received and buyer just needs to sign one.
That's why I'm asking what recourse we have if the buyer doesn't sign the bond.
Otherwise what is the point of otp's if there are no repercussions for buyers signing willy nilly.
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If the bond/s have been approved within the stipulated time period and for the minimum amount as stated in the OTP, then that suspensive condition has been fulfilled.

As long as nothing was added regarding maximum interest rates or some other weird clause, the bond clause would be deemed to have been "tacitly fulfilled" and the buyer can be sued for performance.

The conveyancing attorneys should be leaning on him.
 
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