Thanks for dropping by Safe Investing South Africa. I am on a journey to build wealth my way. For any questions or comments, feel free to contact me.

13 Nov 2014

DECEASED PROPERTY TRANSACTION UPDATE

My deceased estate property transaction journey was very long and tedious. Remember how I gave up on this purchase last year in this post... After a long conversation with the estate agent and the lawyers I thought I should just hang in there. The wait was not as painful because I had no monthly costs. Did I mention that the heirs were so desperate to get rid of this house that they were selling for below 50 percent of what I was told it is worth. It needed a lot of cosmetic work though. I would say R50,000 to R100,000 worth of work. For more on what I looked at to see if this transaction is worth it, go to the article on buying rental property

The transaction took exactly 1 year without a day longer. It was too strange. The bank had lost the Title Deed, which delayed this further. On the 12th November last year, all was done and the property was registered. I am not the most patient person, but I must say, I can do this again. Lawyers informed me that it was registered a year back.

12 November 2013

TRANSFER: SELLER NAME/ BUYER NAME
ERF, TOWN

We write to confirm that the registration of the above transaction took place out of the Deeds Office Cape Town on the 12th of November 2013.

We anticipate receipt of your Title Deed in approximately 3 months time.

In the meantime kindly arrange to be registered with the Amathole and Amahlathi Municipalities as a ratepayer and service consumer

Enclosed is our statement of account which we trust you will find in order.

Yours faithfully,
Lawyer

I was never told to do my own municipality registration before. I was in shock. Anyway this was my first small town purchase. It is much easier in the Metropolitan areas, where I usually buy.

Attached to this letter was my statement of account with costs of about 4.44% of the property purchase price. I just want you to know what the costs for this transaction were. I removed the amounts, I don't know why...SIGH!

STATEMENT OF ACCOUNT

RE: TRANSFER: SELLER NAME/ BUYER NAME
ERF, TOWN

To purchase price Erf xxx   
To attending instruction for transfer, drawing all documents & attending to local work etc
To Vat
To paid Amahlathi Municipality for Clearance Certificates
To pro rata share rates ito Deed of Sale from 12/11/2013 to 30/06/2014
To paid Amathole Municipality for Clearance Certificate
To Fica verification
To Vat
To Cape Town conveyancers charges:  Lodgement and registration of transfer 
To Deeds Office search fee
To Vat 
To document generation fee
To Vat
To our postage, petties and bank charges
To Vat 
By paid iro purchase price and costs       
By interest 

This was all listed in my statement. Some amounts are very small and some listed in triples. Like I said, it was a very low 4.5% including all costs. I would do this again for sure.

What Next:
We are repairing the ills in the house. A very slow process. I'll be constructing 3 or 4 attached small cottages in this 800+ square metre land. Rental is low but overall returns are higher than I earn in my existing units. It is a pilot project for me. I'll report to you as soon as I start. I actually can not wait.

Remember to ask me any question, I love your comments, criticism and questions my friends.     

0 comments:

Post a comment