Property purchase - Offer signed, Contractors NHBRC Certificate expired.

[PsYTraNc3]

Not sure where to begin or if I'm posting this in the right place...

I signed an offer to purchase a plot and plan home in Parklands in the 2nd week of July.
At the time, the structure was built and nearly complete.
Only cupboards, tiling and other small things had to be completed.
Received a copy signed by the seller over 2 weeks later and began seeking finance through a bond originator.

After submitting paperwork to the originator, I was advised that the NHBRC certificate has expired.
The estate agent assured me that the contractor is on top of it and that it usually takes up to two weeks for the renewal process to be completed.
It's been a month...

On top of that, I've been trying to arrange a viewing with the agent for the past two weeks and still waiting for that too.
Had an appointment scheduled for today and now apparently he will be out of the City until Tuesday.

Should I be worried?
I haven't paid anything and FNB and other banks won't give me a final quote until the certificate is renewed.
Standard Bank did for some reason...

 

[AstroTurf]

Walk away

 

[Dlamaqhinga]

Run

 

[PsYTraNc3]

Would I be able to with the offer signed?

 

[stricken]

Would I be able to with the offer signed?

It can be considered a suspensive condition as the seller cannot meet their end of the deal. OTP's are usually only valid for a period of a month or so - unless suspensive conditions are met.

 

[Kosmik]

Would I be able to with the offer signed?

With the lack of documentation from the seller , yes. What are the escape clauses on the document? Normally there are guarantees required by certain dates, namely bond etc. If you are unable to raise a bond, the clause fails and the fact that their cert is expired, blocks your bond so it is not your fault.

 

[xrapidx]

I'm not sure about the new properties, but a lot of the properties built in the area are built very cheapely... if you're having this much trouble before buying, walk away.

 

[Napalm2880]

Would I be able to with the offer signed?

Inform the necessary parties that you want to see the new NHBRC certificate by XX/XX/XX or you consider it breach of the sale contract. Unfortunately I'm not sure if you have much a leg to stand on from a legal point of view, so this would be more of a threat and not something you can act on without taking professional legal advice.

As a last resort the bank will probably decline finance based on an expired NHBRC certificate.

Also, chew your agent out over the phone. Get his personal cell no. and tell him you're going to walk away from the deal if you don't get to see the place urgently and he needs to make arrangements for you to get access.

And lastly, be patient. These things take time. That said, don't be afraid to treat the person holding up the sale process like the scum of the earth bottom feeders that they are. They're getting paid for this and there's no reason they should be dragging their heels.

 

[stricken]

And ask yourself, do you really want to buy a house built by someone who cannot even ensure their administrative obligations are met? What else did they forget? The correct foundation depth, or concrete mix?

 

[etwylite]

The first thing to do is to get the NHBRC enrolment number of the property from the seller/builder. Check this number with the NHBRC here
http://www.nhbrc.org.za/verify-enrolment/

As long as the building is enrolled (which it has to be by law) the banks will grant the bond.

As far as I am concerned, a builders NHBRC reg has nothing to do with his quality or ability.

 

[ToxicBunny]

If you can walk away, then do so.

If they are being lazy and slow to respond to queries, appointments etc prior to the contract even being paid, imagine the issues you will have trying to get things fixed after they are finished.

 

[PsYTraNc3]

Thanks for the info\adivce!

I sent the agent an email venting a bit and pointing out my frustration.

He then got in touch with the transfer attorney who drafted the deed of sale and gave me confirmation in black and white that we are able to step away at any time due to the delays and NHBRC certificate issue.

I will give the agent another two weeks to sort out the issues and if there is no progress, I will walk away.
I also once again got a confirmation that I will be able to view the house next week and it should then be complete.

 

[xrapidx]

Looking forward to your threads in the future

 

[ProfA]

Why can you not go and view it today????

 

[PsYTraNc3]

Why can you not go and view it today????

I can view as in go there and look at it but can't get the keys because that has to be handed to the agent who will be in JHB until next Tuesday.

 

[ToxicBunny]

I can view as in go there and look at it but can't get the keys because that has to be handed to the agent who will be in JHB until next Tuesday.

Tell the agent to make a plan...

I'm guessing this is a R1m+ deal.. the agent not being around is their problem not yours.