Purchasing a Property Privately

[Mattyxx]

Hey everyone,

So, I am interested in a property for sale in a complex in Gauteng. It has been on the market for over a month and is not being sold on a sole mandate, but rather through 2 different agents.

Unfortunately the price is just out of my range. However, a friend of mine who stays in the same complex knows the owner and has suggested that I simply contact him privately and make an offer. I have not signed anything with either agents so effectively I am free to make an offer.

I have purchased properties before but never privately. I plan to contact the owner on the weekend. Assuming he agrees, what is the process to purchase privately?

From what I know:
1. The owner/myself will draw up a generic offer to purchase, which we both sign.
2. I apply for a bond.
3. The owner will contact conveyancing attorneys to begin the transfer - I must pay for this, after I receive the bond confirmation.
4. The owner will sort out the ECC
5. Wait for house to be transferred.

 

[SauRoNZA]

Well the owner really has nothing to lose except some paperwork if he sells to you at the same or more than he would get out after the agents would have taken their cut.

Just don't expect a miracle in a price drop. I would guess more than 5% and you are taking chances, unless of course he is desperate to sell and willing to take a potential knock for a guaranteed sale.

Once the deal is made it's as simple as the OTP yes and then the usual process after that.

On Point 3 if you can get the same attorneys that the bank employs for bond registration to do the transfer you can look at a significant discount. So discuss that option with the owner to further save some money.

Mostly unless they know a friend personally they won't really care who does the transfer.

 

[Corelli]

Correction you haven't but he has

So basically he has signed a contract which means he is legally liable to them until that sale contract expires. What they can do is block the sale or end up sueing him for the commission of the sale. Both which he would like to avoid.

he also has to pay for compliance certificates, rates clearance certificates etc.

You will have to pay for his attorney as well as the bond attorney so basically double attorney fees and some more costs. Also with the market what it is the bond allowance would be pretty strict and high and you would need to put a big deposit of about 15-30%. If the bond doesn't go through and you didn't list it he can claim damages from your deposit.

So if it's already too expensive I would suggest you look elsewhere. The difference in price drop may only be 50k or so by not going with an agent on his side.

 

[ToxicBunny]

So basically he has signed a contract which means he is legally liable to them until that sale contract expires. What they can do is block the sale or end up sueing him for the commission of the sale. Both which he would like to avoid.

he also has to pay for compliance certificates, rates clearance certificates etc.

You will have to pay for his attorney as well as the bond attorney so basically double attorney fees and some more costs. Also with the market what it is the bond allowance would be pretty strict and high and you would need to put a big deposit of about 15-30%. If the bond doesn't go through and you didn't list it he can claim damages from your deposit.

So if it's already too expensive I would suggest you look elsewhere. The difference in price drop may only be 50k or so by not going with an agent on his side.

No, he is only legally liable to the agents IF they introduce a client or facilitate the sale in any way... If they have nothing to do with the sale they have no say in the matter.