selling a house

zerocool2009 said:
If its a cash buy, it will be less drama. Banks want approved plans
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I can fully understand that as the Bank is the new owner so they will put that clause in the OTP. With a cash buyer and no clause in the OTP then I guess it's up to both parties what they want to do, the seller most likely will say I still want to sell you my property, and the buyer can say I don't want it now, not 100% sure. The agent is the one who will jump up and down and say, "I still want my commission"
 
Wrath of Khan MD said:
I can fully understand that as the Bank is the new owner so they will put that clause in the OTP. With a cash buyer and no clause in the OTP then I guess it's up to both parties what they want to do, the seller most likely will say I still want to sell you my property, and the buyer can say I don't want it now, not 100% sure. The agent is the one who will jump up and down and say, "I still want my commission"
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Firstly, the bank is not the owner. You are the owner, and the house is collateral for the loan. The bank does not in any way own a bonded property. Secondly, OTPs are signed before a bank is even selected to apply for a bond. Banks do not insert clauses into OTPs. They don't even see the OTP until after it's signed and the buyer is looking for a loan.
 
deweyzeph said:
Firstly, the bank is not the owner. You are the owner, and the house is collateral for the loan. The bank does not in any way own a bonded property. Secondly, OTPs are signed before a bank is even selected to apply for a bond. Banks do not insert clauses into OTPs. They don't even see the OTP until after it's signed and the buyer is looking for a loan.
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do they just then say "we are not happy to give you a loan because of XYZ?" and then the buyer can't buy the property so everyone walks away.

what about a cash sale then which has already been signed and sealed so to speak?
 
Wrath of Khan MD said:
I can fully understand that as the Bank is the new owner so they will put that clause in the OTP. With a cash buyer and no clause in the OTP then I guess it's up to both parties what they want to do, the seller most likely will say I still want to sell you my property, and the buyer can say I don't want it now, not 100% sure. The agent is the one who will jump up and down and say, "I still want my commission"
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The bank isn't the owner. Why do people keep peddling that nonsense.
 
Wrath of Khan MD said:
do they just then say "we are not happy to give you a loan because of XYZ?" and then the buyer can't buy the property so everyone walks away.

what about a cash sale then which has already been signed and sealed so to speak?
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Usually there will be a suspensive condition in the OTP giving the buyer a way out of the agreement if he can't obtain a bond in a reasonable amount of time. If no bank will give a loan because of a problem with the building plans then usually the buyer can walk away without any consequence providing they can prove that they were not able to obtain a bond.

A cash sale won't have that suspensive condition, so unless the OTP specifically mentions that the plans are up to date, and that is false, then I don't think there's a whole lot the buyer can do. I may be wrong though, I'm not a conveyancer.
 
If you're a buyer then you should have a conditional clause in the OTP that states "the seller will provide municiple approved plans by X date". I had that clause on my last property and the seller had to get a draftsman in to update the plans with the garage they added on.
 
Napalm2880 said:
If you're a buyer then you should have a conditional clause in the OTP that states "the seller will provide municiple approved plans by X date". I had that clause on my last property and the seller had to get a draftsman in to update the plans with the garage they added on.
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It should be compulsory to have this in every OTP. No plans, no sale.
 
DrJohnZoidberg said:
When I bought my place 2 years back, FNB wouldn't finalise the sale until the seller had got new approved plans. It was a huge pain for the seller but as a buyer I was happy about it.
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Same back in 2018
 
OTP will usually state that plan will need to be up to date. A buyer is stupid if they buy a house without plans or out-of-date plans that is not actually there. It is pretty much considered as standard in every OTP. Bank might not even approve the loan without updated plans.

You usually need as-built / record plan if no plans exist, depending on municipality. It's fairly simple plans to draw up by a draftsman. But you will have to pay the municipal submission fees worked out on the size of the house and the drafting / survey fees. All costs to seller.

All plans will still have to comply with municipal laws and regulations. So hopefully you didn't build on the boundary or over a servitude.
 
Wrath of Khan MD said:
do they just then say "we are not happy to give you a loan because of XYZ?" and then the buyer can't buy the property so everyone walks away.

what about a cash sale then which has already been signed and sealed so to speak?
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They do actually. FNB homeloans have loads of ombudsman cases in these situations, where new owners take the bank on, if a house falls apart

I have a motto in buying, no approved plans, I walk away.

A signed OTP means nothing if a wall is hit, you still need to qualify for a bond, or the cash on hand for a cash buy, and trust me, attorneys also asks for approved plans, as they act for both sides
 
zerocool2009 said:
They do actually. FNB homeloans have loads of ombudsman cases in these situations, where new owners take the bank on, if a house falls apart

I have a motto in buying, no approved plans, I walk away.

A signed OTP means nothing if a wall is hit, you still need to qualify for a bond, or the cash on hand for a cash buy, and trust me, attorneys also asks for approved plans, as they act for both sides
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It's one thing to have approved plans, but whether or not those approved plans actually match what's on the ground is a whole other matter.
 
deweyzeph said:
It's one thing to have approved plans, but whether or not those approved plans actually match what's on the ground is a whole other matter.
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They wanted up to date plans for mine
 
Lupus said:
They wanted up to date plans for mine
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My point is that at some stage somebody has to actually physically come to the property and confirm that the approved/up to date plans are in fact, up to date. Often this doesn't happen. In other words, up to date plans are nothing more than a box ticking exercise unless someone who knows what they are doing actually comes to inspect the property and confirms that this is indeed the case on the ground.
 
deweyzeph said:
My point is that at some stage somebody has to actually physically come to the property and confirm that the approved/up to date plans are in fact, up to date. Often this doesn't happen. In other words, up to date plans are nothing more than a box ticking exercise unless someone who knows what they are doing actually comes to inspect the property and confirms that this is indeed the case on the ground.
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For me its rather let the seller fix it, vs I have for fix it later myself costing me thousands.
 
Ja the issue is my house I've been living in in Joburg for the last 12 years is now up for sale. A cash buyer wants to buy the property, we agree on a price, signs OTP. A few weeks later he asks for plans, I send him all the as built plans I have when I bought the property, they are happy but then ask for the municipal approved plans. I then get those approved plans, but... they're not 100% the same as the as built plans I have.

So now must I rectify this issue at my cost (I never did any renovations when I bought the house) my fault when I bought the house long ago, I asked for plans and didn't check them, just filed them away and said thanks.

This is my dilema, I do want it fixed obviously but it always seems that I must pay all the time. 😤
 
Wrath of Khan MD said:
Ja the issue is my house I've been living in in Joburg for the last 12 years is now up for sale. A cash buyer wants to buy the property, we agree on a price, signs OTP. A few weeks later he asks for plans, I send him all the as built plans I have when I bought the property, they are happy but then ask for the municipal approved plans. I then get those approved plans, but... they're not 100% the same as the as built plans I have.

So now must I rectify this issue at my cost (I never did any renovations when I bought the house) my fault when I bought the house long ago, I asked for plans and didn't check them, just filed them away and said thanks.

This is my dilema, I do want it fixed obviously but it always seems that I must pay all the time. 😤
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Your as built plans need to be "re approved"

Im going through this process now.

House we bought had lapa/car port and external room that were not on plan.

I had to get as built plans drawn up and signed off. Its kek as its to long after I bought to get original owners to sort out now. (school fees)

But will know for next time.

As built doesnt just mean drawing up plans it also means signing them off with the municipality took me three times to get plans signed off before I could even proceed building.
 
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Snyper564 said:
Your as built plans need to be "re approved"

Im going through this process now.

House we bought had lapa/car port and external room that were not on plan.

I had to get as built plans drawn up and signed off. Its kek as its to long after I bought to get original owners to sort out now. (school fees)

But will know for next time.

As built doesnt just mean drawing up plans it also means signing them off with the municipality took me three times to get plans signed off before I could even proceed building.
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But this is regard to a sale, not just someone wanting to build something. This is my dilemma... I fully understand if I wanted to build something, and that is the correct way to go about it.

What this is comes down to I guess is, do I as a seller have to do this or is it voetstoots? I'm the seller and now opening my cheque book for the benefit of the buyer. Nothing is stated in the OTP with regards to approved municipal plans. I'm not being a dick about it, it's just that this could cost a fortune or even be rejected, I have absolutely no idea.
 
Wrath of Khan MD said:
But this is regard to a sale, not just someone wanting to build something. This is my dilemma... I fully understand if I wanted to build something, and that is the correct way to go about it.

What this is comes down to I guess is, do I as a seller have to do this or is it voetstoots? I'm the seller and now opening my cheque book for the benefit of the buyer. Nothing is stated in the OTP with regards to approved municipal plans. I'm not being a dick about it, it's just that this could cost a fortune or even be rejected, I have absolutely no idea.
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I'd give your conveyancer a call.
 
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