Who pays what - Buying Property?

[Mortymoose]

My boet is leaving Nam and heading to SA to further his career, he has offered to sell one of his properties to me that he owns in CPT. I was looking for a place to invest in SA property, but a few questions.

1) Can he sell directly to me for a fixed price?
2) Do we have to use an agent?
3) If NO.2 is affirmative, who pays the agent and how much?
4) What other fees should I be looking at?

I know it sounds simple to you lot out there, but I do not reside in the real world!

 

[ToxicBunny]

1) yes
2) no
3) if you use an agent, the seller pays.
4) transfer duties, lawyers fees etc... probably around 50k if the place is about 1 bar. Not sure what the costs for the seller are

 

[tRoN]

Why the heck do you want to get an agent involved
Bloody crooks!!

Just go to a conveyancer.

 

[HavocXphere]

Not sure, but I think its like this:

1) Make sure you get an independent valuation so that you can transfer it at fair value...else SARS is going to be on your case about it being a donation or not being a "true" arms length transaction.
2) You'd need to do a title deed transfer - for which you need a conveyance lawyery type person.
3) Not sure
4) Transfer duty depending on the value. For transactions with commercial entities its either VAT or transfer duty...I *think* for individual vs individuals there should be no VAT (no supplier) and some properties fall under the transfer duty threshold.

Double check answer 4 though...bit fuzzy on that front.

Don't think you specifically need an agent. If you and your bro are close I'd try doing it without...would still sign a basic contract though and maybe have an chat to the conveyancing lawyer about it.

 

[bokka1]

As the guys stated:

1. You will need an independent valuation from an estate agent, usually two, to lodge with SARS for the transfer duty. They usually do this free of charge.

2. No agent is required to do the deed of sale, you can go directly to a conveyancer.

3. N/A

4. Seller pays for the Bond cancellation if there is a bond over the property and also for the electrical, beetle and plumbing certificates. Buyer pays for the transfer and bond costs.

PM me if you need more info or assistance.

 

[HavocXphere]

1. You will need an independent valuation from an estate agent, usually two, to lodge with SARS for the transfer duty. They usually do this free of charge.

You sure about that? I'd rather go with a professional valuator. To be honest I doubt a valuation by one or two estate agents will stick in a dispute unless they also happen to be accredited. And it def won't be free of charge.

I believe these are the right okes:
http://www.sacpvp.co.za/

 

[bokka1]

You sure about that? I'd rather go with a professional valuator. To be honest I doubt a valuation by one or two estate agents will stick in a dispute unless they also happen to be accredited. And it def won't be free of charge.

I believe these are the right okes:
http://www.sacpvp.co.za/

Estate agent valuations are fine and if SARS requests an independent professional valuation (I have never seen them do that) then incur the costs. Why pay for something that you can get for free?

The Municipal valuation that you insert on the transfer duty documents for efiling is in any case very reliable and up to date.

Also ask the estate agent for a valuation of the property on the nett value without the estate agent commission on top.

 

[greenflash]

You sure about that? I'd rather go with a professional valuator. To be honest I doubt a valuation by one or two estate agents will stick in a dispute unless they also happen to be accredited. And it def won't be free of charge.

I believe these are the right okes:
http://www.sacpvp.co.za/

An estate agent will definately give you a free valuation

 

[HavocXphere]

An estate agent will definately give you a free valuation

An estate agent will tell you the sky is green if it helps them make a sale. They hardly qualify as "independent".

The Municipal valuation that you insert on the transfer duty documents for efiling is in any case very reliable and up to date.

Dude wtf are you smoking?

See below for 16million > 0.5million valuation drop:
http://mybroadband.co.za/vb/showthr...property-price-from-R16-8-million-to-R490-000

I know family that experienced good 100% shifts in supposed muni valuations from one month to the next as well...

Muni valuations are about as reliable as the lotto...

 

[bokka1]

An estate agent will tell you the sky is green if it helps them make a sale. They hardly qualify as "independent".


Dude wtf are you smoking?

See below for 16million > 0.5million valuation drop:
http://mybroadband.co.za/vb/showthr...property-price-from-R16-8-million-to-R490-000

I know family that experienced good 100% shifts in supposed muni valuations from one month to the next as well...

Muni valuations are about as reliable as the lotto...

Nope, I work with this every day and the Cape Town valuations are very accurate in general, of course you will get some inconsistencies but overall it is good.

You just need the valuation for SARS and I can guarantee you that estate agents do it for free as they see you as a potential future client. Why does the valuation bother you so much? All he needs is a valuation, him and his brother can sort out the price between themselves based on that. The estate agent will provide them with a market comparison of similar properties sold in the area.

Disclaimer: I am not an estate agent.