Properties in Graanendal

Offer to purchase

After we have started with the marketing we hopefully will have a willing buyer ready to make and Offer to purchase. Effectively this means that the buyer offers to buy a property at a certain price subject to certain conditions. At Chas Everitt we have a comprehensive "Offer to purchase" that may be customised to the buyer and seller's needs. When sitting the buyer and seller I will explain every part of the contract. There are a lot of clauses which will be explained in detail. The reason for this is to ensure that there are NO grey areas and that both seller and buyer are on the same page.

1. Suspensive conditions

With certain OTP’s there may be suspensive conditions attached to it. 

Basicly this leans that these conditions first needs to be fulfilled before the contract “Kicks in”.
Examples of this:
a. Another property (normally the seller) needs to be sold first

b. Offer are subject to a bond.

c. The client may sit overseas and may put in a offer on condition that they view the property first and are happy with the the property

There are many other examples of “suspensive conditions”  and this will depend on each Buyer’s situation.
This will normally be filled in at the “special conditions” part of the contract of can be added in as an annexure.

2. 72 hour Clause

Should a seller accept an offer with suspensive conditions this means the buyer will start asap to work on getting the conditions resolved asap.

It is in the seller’s interest that the property will still be marketed as the suspensive conditions may never be lifted and then the seller lose out on potential sales.
 
To protect both buyer and seller the “72 hour “clause has been built in. This means that should a cash offer be offered by a second buyer, the first buyer then has 72 hours to get his suspensive conditions lifted or make alternative arrangements.

3. Transfer date vs Occupation date

The transfer date is normally the date that the buyer and seller agree on when a property are legally transferred from the buyer to the seller. This includes ownership as well as all risk. 
The transferring attorneys will normally try their best to keep to the transfer date as per OTP but a lot of factors may effect the exact date.

Transfer date

The transfer date is normally the date that the buyer and seller agree on when a property are legally transferred from the buyer to the seller. This includes ownership as well as all risk. 
The transferring attorneys will normally try their best to keep to the transfer date as per OTP but a lot of factors may effect the exact date.

Occupation date

Normally the occupation date and transfer date is on the same day, but in certain situations the buyer and/or seller may request a different occupation date.
eg. The house is currently empty and the buyer wants to move in earlier than the transfer date.

5. Capital Gains tax

Every person’s tax situation is different. It is crucial to check with your tax advisor what the Capital gains tax will be on your property. There are exemptions on primary residences. 
Please don’t forget about this as you my receive a surprise during the next tax filing season.

6. Huur Gaat voor Koop

In South African law we have the principle “Huur Gaat voor Koop”.
This basicly means that if rental agreements (tenants) are in place the rental contract normally trumps the Sale Contract. So if you sell a property with 6 month left on the rental agreement the buyers won’t be able to take occupation of the property either:
a. The rental time period has run out
b. A new agreement has been made between the new buyers and current tenants. 

This does protect buyers, Sellers as well as Tenants. 
Every rental agreement differs so it is important to give the buyer copy of the lease before the offer is made so that he understands what the implications will be.
If you have questions about rentals you are welcome to contact one of our rental experts.

7. Who pays for what?

It is important to be aware of the costs that will be deducted from your final selling price. Below is a list of costs and who are responsible for what.

Seller

  • Agent's commission
  • Bond cancellation fee
  • Rates and taxes
  • Levies and special levies
  • Compliance certificates
  • Other

Buyer

  • Transfer costs
  • Transfer duty
  • Bond costs
  • Occupational rental (if applicable)
  • new Levies
  • Other

ESI attorneys has been so kind to create a detailed explanation of all the costs involved. Click on the image to download.

Properties in Graanendal

Once the offer has been accepted... what then?

Click here

You are now at Step 4 of the seller journey.

1. Before Listing

Seven things you MUST do BEFORE listing your house

2 Three secret ingredients

To get most money in your pocket we need these three ingredients

3. Mandates & Commision

Different mandates and commission models

4. Contracts

What does all the clauses in an OTP mean?

5. OTP Signed, now what?

Offer has been accepted, now what?

Next step