Linky Schutte Attorneys - F A Q's

Questions asked by the Seller:

Should I give a sole mandate to one estate agent-? Wouldn't my house be sold sooner if I have a few agents.
The first three weeks is very important to sell your property and therefore it must be priced as near as possible to the current market value. After three weeks there is a subtle negative emotion from the prospective buyer of " there must be something wrong why is it not selling" So after finding the perfect market related selling price you don't want three agents with different prizes to entice a buyer. The buyer will immediately sense that there is more room for negotiation. Rather ask the one agent to furnish you with his marketing plan and keep him to it!

What if this is a distress sale and I finaly find a buyer ,but the purchase price won't cover my bond and estate agent comission.
Unfortuanately in our current economy we had to deal with a few of these situations We will assist you to approach the bank to apply for a loan for the shortfall and should the value of the property be sufficient , the bank can give their proceed to register the transaction. A formal agreement between you and the bank will be drawn for the outstanding amount.

What is penalty interest?
The bank require from you to give them three months notice before you sell your house ,failing which they will claim penalty interest from you. The first thing we do ,is to apply for the cancellation figures so that their three months can start running. Should registration then take place by day 60 , you will only be liable for the remaining 30 days.

Should I keep paying my bond installments and levies?
Pleas keep paying these, since we will ensure that you will be refunded for any amounts by date of registration.

Who is liable for transfer costs?
The purchaser pays all transfer costs The seller is only liable for the following:
• Estate agent comission
• Bond cancellation fees
• Pro rata levies to the body corporate
• Payment of rates and taxes for 4-6 months in advance
• Electricity certificate

What if I have lost my title deed?
That is not a problemm, we apply for a copy from the Deeds office . It will not delay the process and we can register everything simultaneously.

Questions asked by the Buyer:

Should I go to my own bank or approach a bond originator?
This is your own choice . Go to your bank if you have a personal banker and get good service. If you don't have the time , a good origiantor company can take the administration out of your hands. They will approach all the banks and furnish you with the results. They get their commission from the bank.

Should I register in my personal capacity or a trust, and what are the cost implications?
In the past it was more expensive to register property into a trust or company due to the 8 % transfer duty levied on the purchase price. That has changed and all the transfer fees in any entity are the same.
These are the recent transfer duty schedules:
R0 - R600 000.00: No transfer duty
R600.000.00 - R1000 000.00: 3%
R1000 000.00 - R1500 000.00: 5%
R1500 000.00 Upwards: 8%

What if I want to pay a big deposit, will my Attorney earn the interest?
No they will not.
You have two options:
• You can retain the money in your account where you earn the most interest , and furnish us with the detail of your bank manager . We send them our guarantee requirements to enable them to draw the documents. They invite you for signature . Be aware that the bank will charge you a substantial fee to issue a guarantee. Enquire first!.
• You can pay the money directly into our trust account and we will invest it on your behalf in a interest bearing account . We do not charge any administration fees and the funds remain in our account untill date of registration.

Who is liable for transfer costs
The purchaser pays all transfer and bond costs. Our fees are prescribed by the law society and based on the purchase price of the property. There are some firms that will offer you a discount of 50% of their fees, but that is seen as "tauting" by the law society and subject to a disciplinary hearing and even removal from the role to practice. These attorneys do a lot of damage to the industry. Thus the question remains, will you really get 100% service for 50% fees?

 

Services Overview

All aspects of conveyancing, including, Drawing up of contracts transfer of properties, opening and registration of sectional title schemes and transfer of late estate transfers.

  • Anti-Nuptial Contracts.
  • Drafting of Will and Registration of Trust.
  • Winding Down of Estate.

Contact Us

Contact Us for all your Conveyancing and Property Transfer Requirements

Address: 150 Daffodil Street, Lynnwood Ridge, 0040
Telephone: +2712 348 8584
FAX: 086 605 0479
Mobile: +2782 875 0073
E-mail: linky.schutte@schuttelaw.co.za