The Trojon Horse massacre in Thornton Road

Lake Properties                       Lake Properties

Lake Properties                     Lake Properties

What led to it  

By 1985, South Africa was in a State of Emergency. Student protests, school boycotts and street demonstrations against apartheid were taking place almost daily, especially in Cape Town’s coloured townships such as Athlone.

• On 15 October 1985, young people gathered along Thornton Road, near Alexander Sinton High School, to protest.
• They were throwing stones at passing vehicles — a fairly common form of township resistance.
• The apartheid state wanted to crush these protests and intimidate communities. Instead of dispersing the crowds openly, police devised a deceptive ambush tactic.

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The “Trojan Horse” tactic

The plan was chillingly simple:

• A railway truck drove slowly into the area. On the back of the truck were large wooden crates, apparently carrying goods.
• Hidden inside those crates were armed policemen from the South African Police and Railway Police.
• Once protesters came close and began throwing stones, the police suddenly burst out from the crates and opened fire with live ammunition.

This ambush became known as the Trojan Horse Massacre because the truck, like the Greek myth, concealed attackers who struck once they were inside enemy territory.

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The shooting itself

When the shooting erupted:

• Three young people were killed instantly:
  • Jonathan Claasen (21)
  • Shaun Magmoed (15)
  • Michael Miranda (11) – who wasn’t even part of the protest, he was simply in the wrong place at the wrong time.
• Many others were wounded, including schoolchildren.

What made the event especially notorious was that it was captured on film by international television crews (notably CBS News). The footage of police bursting from crates and gunning down students spread worldwide, causing outrage and embarrassment for the apartheid government.

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Who was responsible

• The South African Police (SAP) and Railway Police, acting as part of a Joint Security Task Force, carried out the operation.
• Orders for the “Trojan Horse” decoy tactic came from higher command levels — not just the men on the truck.
• The Truth and Reconciliation Commission (TRC) later confirmed that this was a deliberate counter-insurgency operation, not a spontaneous reaction to violence.

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Aftermath: Inquest & prosecutions

The families of the victims, supported by human rights lawyers, fought hard for justice:

1. Inquest (1988):

   • A judge found that the police had acted “unreasonably” in the way they used lethal force.
   • Despite this, the Attorney-General initially refused to prosecute.

2. Private prosecution (1989):

   • Families brought their own case against 13 policemen.
   • The trial was long and difficult, but in December 1989 all accused were acquitted.

3. TRC hearings (1996–98):

   • The TRC revisited the case.
   • Victims’ families testified about their loss.
   • Security force members admitted aspects of the operation but largely evaded personal accountability.
   • No one was ever successfully punished for the killings.

---

Why it matters

• The Trojan Horse Massacre became a symbol of apartheid’s brutality: using deception and live fire against schoolchildren.
• It highlighted the impunity of security forces: even with video evidence and an inquest ruling, the courts of the time would not convict.
• Today, memorials and annual commemorations keep the memory alive. The TRC officially recorded it as a gross violation of human rights.

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✅ In summary:
The police shot at students in Thornton Road because they were using an ambush tactic designed to punish and terrify protesting youth. The apartheid security forces were directly responsible, but despite inquests and private prosecutions, nobody was ever convicted.

Lake Properties                    Lake Properties

What are the advantages of trying to pay your mortgage bond earlier off

Lake Properties                        Lake Properties

Lake Properties                    Lake Properties

Why paying your bond early helps (thoroughly explained)

1) The big, obvious win — you pay much less interest

Mortgages are amortised so early payments cover mostly interest; as the balance drops more of each payment reduces capital. Every rand you pay early reduces the base on which future interest is calculated — that’s a compounding win.

Example (real numbers so you can feel the scale):

• Loan: R1,500,000
• Interest: 9% p.a. (compounded monthly)
• Term: 20 years (240 months)

Monthly payment for this loan = R13,495.89.
Total paid over 20 years = R3,239,013.44.
Total interest paid if you make only required payments = R1,739,013.44.

Now two common “early pay” strategies and what they actually achieve:

A — Add R2,000 extra each month to the standard payment:

• New payoff time ≈ 174 months (14.5 years) instead of 240 months — you finish ~5.5 years sooner.
• Total interest paid ≈ R1,196,284.74.
• Interest saved ≈ R542,728.70.

B — Make a R200,000 lump prepayment after 5 years:

• You’ll shorten the overall term to about 193 months (≈16.1 years) — save 47 months (~3.9 years).
• Total interest paid ≈ R1,104,706.64.
• Interest saved ≈ R634,306.80.

(Those examples show how both small regular extras and a single lump sum can cut huge sums from interest.)

2) You gain flexibility & optionality faster

Faster equity growth gives you options:

• Refinance at better rates or borrow a smaller amount if you need a loan later.
• Sell with a larger cash buffer.
• Use equity to invest or fund life events — but only if you want to, not because you’re forced to.

3) Lower sensitivity to rate rises and income shocks

If rates rise (or your bond has a variable rate), a smaller outstanding balance reduces how much a rate increase raises your monthly interest or shortens the margin for error when your income drops.

4) Better retirement and life planning

No bond payment in retirement = predictable, lower fixed expenses and less stress on pension income. That makes retirement planning simpler and often more secure.

5) Psychological and lifestyle value

There’s real peace-of-mind value in owning your home sooner — less daily stress, fewer decisions constrained by a monthly bond, and a stronger sense of financial freedom. That’s intangible but important.

Important trade-offs and checks (don’t skip these)

Paying the bond early isn’t always automatically the best move — you must compare the opportunity cost:

1. Prepayment penalties and admin rules

   • Some bonds have fees or limits on how much you can repay early, or require admin to apply extras to principal. Always confirm the lender’s terms.

2. Opportunity cost of other investments

   • If you can plausibly earn a higher after-tax, after-fees return by investing (or by paying off higher-interest debt first), investing that money might make more financial sense than prepaying the bond.
   • A simple rule of thumb: if your mortgage interest rate is higher than the after-tax return you reasonably expect from alternate investments, prepaying is attractive.

3. Liquidity / emergency fund

   • Don’t deplete your emergency savings. Bonds are long-term — if you drain liquid cash to prepay and then need money, you may have to borrow at higher rates.

4. Other debts

   • Prioritise paying off higher-interest unsecured debts (credit cards, personal loans) before accelerating a low-rate mortgage.

5. Tax considerations / investment property

   • Tax rules differ by country. In many places, interest on owner-occupied mortgages is not tax-deductible but interest on investment properties is. Check local tax rules before making decisions dependent on tax deductions.

6. If you’re fixed-rate

   • Fixed-rate bonds sometimes have stronger penalties for early repayment — check whether prepaying is cheap or expensive for your contract.

Practical tactics — how to prepay smartly

• Confirm with your bond originator:

  1. Are there prepayment penalties?
  2. Will extra payments be applied to principal (not simply held as credit against future instalments)?
  3. Can you make partial prepayments, and how often?

• Tactics you can use

  • Add a small extra each month (e.g., R1,000–R3,000) — consistent and painless.
  • Make bi-weekly / fortnightly payments if your bank allows it (it’s a small effective extra each year).
  • Use windfalls (bonuses, tax refunds, inheritance) as lump-sum prepayments — these have a big impact.
  • Round up your monthly payment (e.g., always pay R14,000 instead of R13,495.89).
  • Split windfalls — e.g., 60% to bond, 40% to investments — to get the best of both worlds.

• Record-keeping

  • Keep receipts and check annual statements to ensure extra amounts are reducing principal. Mistakes happen; check.

A short decision checklist

• Do you have a 3–6 month emergency fund? ✅
• Do you have higher-interest debts to clear first? ✅
• Have you compared the mortgage rate to expected after-tax investment returns? ✅
• Have you confirmed prepayment rules with your lender? ✅

If you can answer “yes” to these and you’re comfortable with the reduced liquidity, accelerating the bond often wins financially and emotionally.

---

Lake Properties Pro-Tip:
Before you throw money at your bond, call your bond originator and ask two direct questions: (1) “Are there any prepayment penalties or annual caps on extra payments?” and (2) “Will extra payments go straight to principal, and can I redraw on them later if needed?” Then use windfalls (bonuses, tax refunds) to cut principal, keep a 3–6 month emergency fund untouched, and consider splitting other surplus cash between an extra bond payment and a higher-yield investment — that way you save interest and keep upside potential.

If you know of anyone who is thinking of selling or buying property,please call me 

Russell 

Lake Properties 

083 624 7129 

www.lakeproperties.co.za info@lakeproperties.co.za 

Lake Properties                       Lake Properties       

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R3 200 000

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How mortgage bonds work? Initially when you take out the bond till when you are finished after 20 years. How does the bank calculate its interest on a mortgage bond

Lake Properties                     Lake Properties

Lake Properties                    Lake Properties

A mortgage bond (home loan) is a loan from a bank to you so you can buy a home. The bank registers a bond (a mortgage) over the property at the Deeds Office — that means the bank has security: if you don’t pay, the bank can enforce the bond. You repay the loan over an agreed term (commonly 20 years) by monthly instalments that cover both interest and capital (the amount you borrowed).

2) The players & steps at the start

• You (the borrower): apply, provide income docs, ID, bank statements, etc.
• Bank: does affordability checks, valuation, and approves the loan and interest rate.
• Conveyancer: completes the legal work, registers the bond at the Deeds Office and charges registration fees.
• Insurers: the bank will require building insurance and often life/credit protection insurance.

3) How interest is calculated — the core idea

• Most residential bonds use a declining-balance method: interest is charged on the outstanding loan balance.
• Interest rate can be variable (prime-linked) or fixed for a period. With variable/prime-linked loans the bank can change the interest rate when prime moves.
• Banks usually calculate interest daily on the outstanding balance and post/charge it monthly (so interest accrues daily but you see it on the monthly statement).

Example of daily interest to give the idea: If your outstanding balance is R1,000,000 and the annual rate is 11%:

• Daily interest ≈ 1,000,000 × 0.11 / 365 ≈ R301.37 per day (approx).

4) The monthly instalment (the math — step by step)

Banks commonly set a fixed monthly payment that amortises the loan over the chosen term. The formula for a fixed monthly repayment is:

\text{Monthly payment }(M) = \frac{r \times L}{1 - (1+r)^{-n}}

Where:

• = loan amount (principal)
• = monthly interest rate = (annual rate ÷ 12)
• = number of months (term × 12)

Let’s do a concrete, digit-by-digit example so you can see every step:

Assume:

• Loan
• Annual interest = 11% (0.11)
• Term = 20 years → months

Step 1 — monthly rate:

r = 0.11 \div 12 = 0.009166666666666667

Step 2 — compute and its reciprocal:

(1+r)^{240} \approx 8.935015349171 \quad\Rightarrow\quad (1+r)^{-240} \approx 0.111919225756

Step 3 — denominator:

1 - (1+r)^{-n} = 1 - 0.111919225756 = 0.888080774244

Step 4 — numerator:

r \times L = 0.009166666666666667 \times 1{,}000{,}000 = 9{,}166.666666666667

Step 5 — monthly payment:

M = \frac{9{,}166.666666666667}{0.888080774244} \approx \mathbf{R10{,}321.88}

So your monthly payment would be ≈ R10,321.88.

5) How each monthly payment is split (amortisation)

Each monthly payment = interest portion + capital portion.

Month 1 example:

• Opening balance: R1,000,000
• Interest for month 1 = balance × r = 1,000,000 × 0.0091666667 ≈ R9,166.67
• Payment = R10,321.88 → capital repaid = 10,321.88 − 9,166.67 = R1,155.22
• Closing balance after month 1 = 1,000,000 − 1,155.22 = R998,844.78

Because interest is largest when the balance is highest, in the early years most of your payment goes to interest; over time the interest portion shrinks and more of each instalment reduces capital.

6) First 12 months snapshot (rounded to 2 decimals)

Month	Interest	Capital repaid	Closing balance
1	9,166.67	1,155.22	998,844.78
2	9,156.08	1,165.81	997,678.98
3	9,145.39	1,176.49	996,502.48
4	9,134.61	1,187.28	995,315.20
5	9,123.72	1,198.16	994,117.04
6	9,112.74	1,209.14	992,907.90
7	9,101.66	1,220.23	991,687.67
8	9,090.47	1,231.41	990,456.26
9	9,079.18	1,242.70	989,213.56
10	9,067.79	1,254.09	987,959.46
11	9,056.30	1,265.59	986,693.87
12	9,044.69	1,277.19	985,416.68

(You can see interest slowly falls and capital portion slowly rises month by month.)

7) Total cost over 20 years (same example)

• Monthly payment ≈ R10,321.88
• Total paid over 240 months = 10,321.88 × 240 ≈ R2,477,252.14
• Total interest paid ≈ R1,477,252.14 (that’s more than the original R1,000,000 — the cost of borrowing)

8) Real-world ways to cut interest (with numbers)

Small changes can make a huge difference.

A) Add R1,000 extra per month (consistent)

• New monthly payment = R11,321.88
• Loan is repaid in 182 months (≈ 15 years 2 months) instead of 240 months.
• Total interest paid ≈ R1,058,249.68
• Interest saved ≈ R419,002.46
• Time saved ≈ 58 months (≈ 4 years 10 months)

B) One-off lump sum of R100,000 at the start (then keep the original monthly payment)

• New effective principal = R900,000; monthly payment kept at R10,321.88
• Loan repaid in 176 months (≈ 14 years 8 months)
• Total interest paid ≈ R916,453.63
• Interest saved ≈ R560,798.51
• Time saved ≈ 64 months (≈ 5 years 4 months)

Takeaway: both steady small extras and occasional lump sums reduce interest massively. (Numbers above use the same 11% example throughout.)

9) Other practical things banks do / clauses to watch for

• Variable vs fixed rate clauses: variable (prime-linked) means your rate can move; some lenders change your monthly instalment when prime changes, others may keep instalment and change amortisation period — check your contract.
• Prepayment/early-settlement rules: some banks permit extra repayments penalty-free; some have admin fees or require notice for large lump sums. Check the bond contract.
• Bond initiation and registration costs: conveyancer fees, Deeds Office fees, valuation fees, bond initiation/admin fee — these are paid at the start or added to the loan.
• Insurance requirements: banks will usually require building insurance and often life/credit cover — these costs sit on top of the monthly bond repayment.
• Missed payments / arrears: if you fall behind, the bank will charge arrear interest and fees and may ultimately proceed with legal collection and sale in execution; always speak to your bank early if you have trouble.
• Bond cancellation: when you finish the last payment, the bank issues a cancellation which the conveyancer registers at the Deeds Office so title is free of mortgage — there are small cancellation fees.

10) Useful checklist — what to check in your bond papers

• Is the rate prime-linked or fixed, and for how long?
• How will the bank react to a prime change (monthly payment change or term change)?
• Are extra repayments allowed? Any penalties or notice periods?
• What fees are charged at initiation and monthly admin fees?
• What insurance is mandatory and what does it cost?
• What are the exact settlement procedures if you sell or refinance?

11) High-impact borrower moves

• Make regular small extra payments (even R500–R1,000) — compounds to big savings.
• Save and use lump-sum payments (bonuses, tax refunds, inheritances) to reduce principal.
• Refinance/switch to a lower rate if fees are reasonable (do the math: interest saved vs switching costs).
• Keep an emergency fund so you won’t miss payments if your income dips.

Lake Properties Pro-Tip

If you can, set up your bank account so that any extra you pay into the bond is clearly marked as capital reduction (not just an early payment). Small extras are powerful: R1,000 extra monthly on a R1m bond at ~11% slashes nearly R420k in interest and cuts almost 5 years off a 20-year term. Always ask your bank in writing how they apply extra payments (do they reduce term or next instalments?) — that tiny bit of clarity saves headaches later.

Lake Properties                     Lake Properties

When is a 30 year bond more advantages than a 20 year bond.

Lake Properties

Lake Properties

• Monthly payment: longer term → lower monthly repayment because the same principal is spread over more months.
• Total interest paid: longer term → much more interest paid over the life of the loan, because interest accrues for more months.
• Equity build: shorter term → faster principal repayment, so you build equity faster with a 20-year bond.
• Payment composition: with longer terms early payments are mostly interest; with shorter terms a larger share goes to principal earlier.

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Concrete example (so the trade-off is obvious)

Example assumptions (illustrative only):
Loan amount = R1,000,000 (one million rand)
Interest rate (scenario A) = 10.00% p.a. (repayment loan)
Compare: 20-year (240 months) vs 30-year (360 months) at the same interest rate.

Using the standard mortgage formula (monthly rate = annual ÷ 12; monthly payment M = P·[r(1+r)^n]/[(1+r)^n−1]):

At 10.00% p.a.

• 20-year (240 months):
  • Monthly payment ≈ R9,650.22
  • Total interest over life ≈ R1,316,051.95
  • Total paid (principal + interest) ≈ R2,316,051.95
• 30-year (360 months):
  • Monthly payment ≈ R8,775.72
  • Total interest over life ≈ R2,159,257.65
  • Total paid ≈ R3,159,257.65

So: choosing 30 years saves you ≈ R874.50 per month but costs you about R843,205.70 extra in interest over the life of the loan (with the same interest rate).

If the 30-year loan also carries a slightly higher rate (common in the market), e.g. 30-year at 10.5% vs 20-year at 10%, the monthly gap shrinks and the extra interest rises even more:

• 30-year at 10.5% → monthly ≈ R9,147.39 (so only ~R502.82 per month cheaper than the 20-yr at 10%), and total interest ≈ R2,293,061.46 (roughly R977,009.51 more than the 20-yr at 10%).

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How equity and early repayments compare (same 10% example)

• After 1 year of payments:
  • 20-year: you’ve paid down principal ≈ R16,547.38.
  • 30-year: you’ve paid down principal ≈ R5,558.79.
    So the 20-year builds ~3× more equity in year one.
• After 5 years: principal paid ≈ R101,975.57 (20-yr) vs R34,256.80 (30-yr).

This shows how much slower principal reduction is on a 30-year bond — early years are dominated by interest.

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When a 30-year bond makes sense

1. Tight monthly cash flow / uncertain income. If your budget is tight or your income can drop (commission work, contract work, business risk), a lower monthly payment reduces default risk and stress.
2. You’ll use the freed cash for higher-return opportunities. If you reliably invest the monthly saving and your after-tax return is higher than the mortgage interest you’re avoiding, the longer term can make sense (but this is an active investing decision and not guaranteed).
3. You need flexibility early on — e.g., young buyers who expect income to grow, parents paying school fees, or someone building a business.
4. You want the option to pay extra but not be forced to. A 30-yr loan lets you make small payments when cash is tight and bigger ones when you can — many people like that optionality.
5. Short holding horizon for the property. If you plan to sell within a few years, the total-interest penalty of 30 years matters less because you won’t be on the full-term schedule.
6. Keeping emergency cash. If choosing 20 years would drain reserves or leave you without an emergency fund, pick 30 years and keep liquidity.

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When a 20-year bond is usually better

• You can comfortably meet the higher monthly payments.
• Your priority is paying less interest and owning the home sooner.
• You value building equity fast (helps with future refinancing or borrowing against the property).
• You don’t have higher-return uses for the extra monthly cash — the math often favors faster repayment.

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Ways to get the best of both worlds

• Take a 30-year repayment bond but make extra payments whenever possible. That way you keep low required payments but reduce the term when cash allows. (Check with your bank about prepayment rules/penalties.)
• Use an offset account (if offered) or a separate savings account: keep cash close to the bond and lower interest effectively by offsetting balances.
• Make “bonus” or yearly lump payments from raises/bonuses — many people treat their raises as a source for extra bond payments rather than more lifestyle inflation.
• If you’re disciplined, invest the monthly saving (the R874.50 in the example) into a low-cost, diversified portfolio — but only if you’re confident about returns and risk tolerances. Compare expected after-tax returns vs mortgage rate.
• Refinance later: start with a 30-year now for flexibility; if income and rates change, refinance into a shorter term later.

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Risks & practical checks

• Interest rate differences matter. Lenders often charge a slightly higher rate for longer terms — this reduces the monthly advantage and increases life-time interest.
• Prepayment penalties / administration fees — check your bank’s rules before committing.
• Behavioral risk: having a lower compulsory payment can tempt some people to spend the difference rather than save or invest it. If you’re not disciplined, a 20-year can be safer for the “forced savings” effect.
• Inflation & income growth: if you expect inflation and rising income over decades, the real burden of a long loan falls, which can favor 30 years. But that’s contingent on future events.

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Quick decision checklist

Ask yourself (honest answers):

• Do I need the lower monthly payment now to avoid financial stress? (Yes → 30-yr looks better.)
• Can I absorb the higher monthly payment without risking my emergency fund? (Yes → 20-yr looks better.)
• Do I have higher-return uses for the monthly saving and the discipline to invest them? (Yes → 30-yr can make sense.)
• Will I likely sell the property soon? (Soon → 30-yr’s extra interest matters less.)
• Does the lender charge a higher rate for 30 years or prepayment penalties? (If yes, factor that in.)

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Lake Properties Pro-Tip: If you’re unsure, pick flexibility: take the 30-year bond only if your bank allows penalty-free extra repayments (or has an offset), and then treat the mortgage like a 20-year by paying the equivalent 20-year monthly amount whenever you can. That gives you the safety of a low required payment and the option to own your home faster — without burning your emergency fund. 

If you know of anyone who is thinking of selling or buying property,please call me 

Lake Properties 

083 624 7129 

www.lakeproperties.co.za 

info@lakeproperties.co.za 

Lake Properties                     Lake Properties

House for sale in Grassy Park

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What are the advantages and disadvantages of switching your mortgage bond to another bank.

Lake Properties                    Lake Properties

Lake Properties                    Lake Properties  

1. Lower interest = real savings.
   A lower interest rate reduces your monthly repayment and the total interest paid over the life of the bond.

2. Immediate monthly cashflow relief.
   Lower repayments free up money for living costs, investments or paying down higher-cost debt.

3. Better product features & flexibility.
   You may gain access to benefits like free extra repayments, offset/savings accounts, redraw facilities, or more flexible payment dates.

4. Consolidate / clean up finances.
   Refinancing can let you roll expensive short-term debt (credit cards, personal loans) into the mortgage at a lower rate (but be careful — you extend the term).

5. Access to equity (“cash-out” refinancing).
   If your property value has risen, you may be able to increase the loan (and take cash out) for renovations, an investment, or debt consolidation.

6. Service and digital experience.
   You might prefer another bank’s online tools, customer service or speed of handling bond queries.

⚠️ Disadvantages — the downside (expanded)

1. Upfront switching costs (real money).
   Typical costs include: bond cancellation fees, new bond registration costs, conveyancer/attorney fees, bank admin fees, bank valuation fee, and possible early settlement penalties from your current lender. These all add up and reduce net savings.

2. Breakage/early termination penalties (if fixed rate).
   If you’re on a fixed-rate product, leaving early can trigger significant breakage fees—sometimes larger than you expect.

3. Paperwork, checks and delay.
   You’ll need payslips, proof of ID, bank statements, the new lender will do a credit check and property valuation — it’s effectively a new bond application.

4. Possible reset of loan term (costly).
   If you extend the loan term to lower the monthly amount, you often pay far more interest over the longer term — a short-term gain for a long-term cost.

5. Approval is not guaranteed.
   The new bank must be satisfied with your credit, affordability and the property valuation. If they decline you, you’ve still incurred valuation or admin costs.

6. If you plan to sell soon, you may never recoup costs.
   If your break-even period is longer than the time you intend to keep the property, switching is usually not worth it.

How to decide — step-by-step (do this before signing anything)

1. Get the redemption figure from your current bank.
   Ask for the outstanding balance + exact cancellation fees and any early settlement penalties. You need the final figure they’ll require.

2. Get a full written quote from the new bank.
   The quote must include new monthly repayment, interest rate (fixed/variable), valuation fee, attorney fees, admin fees and any other one-off charges.

3. Calculate monthly savings and break-even months.

   • Monthly saving = (current monthly repayment) − (new monthly repayment).
   • Break-even months = (total switching costs) / (monthly saving).
     If break-even is shorter than the time you expect to stay in the house, that’s a good sign.

4. Compare total interest over the remaining term.
   Don’t only look at monthly payments — calculate total interest you’ll pay at each rate over the remaining term (or the new term if you change it).

5. Check non-monetary items.
   Contract flexibility, ability to make extra payments, how interest is applied, insurance/cover changes, online banking quality, and customer service.

6. Negotiate with your current bank first.
   Ask them to match the new offer. Often they will reduce the rate without you having to pay switching costs.

7. Factor in life plans.
   Are you selling or moving in two years? Are you planning big changes (start a business, have children)? If short horizon, be conservative.

Practical checklist — what to request & prepare

• Statement of outstanding balance and full redemption figure (including cancellation fees).
• Recent bond repayment schedule (how many months left, term).
• New bank’s written quote (full list of fees + monthly repayment).
• Documentation: ID, 3 latest payslips, 3-6 months bank statements, proof of address, latest bond statement.
• Ask for a copy of the new loan agreement to read early.
• Confirm whether your home and life insurance transfers automatically or need reissue.
• Check whether the new bank requires a new valuation and who pays for it.
• Ask whether the new repayment includes interest-only period options, extra payments and whether there are penalties.

Sample negotiation text you can use

“Hi [Bank name], I’ve received a formal offer from [competitor bank] with an interest rate of X% and total switching costs of R[xx]. I’d prefer to stay with [current bank]. Can you match or beat this rate, or offer a lower admin fee to avoid switching? Please send me your best written offer.”
(Short, polite, and gives them a concrete target to match.)

Worked examples (so you can see the math)

Below are illustrative examples (use these as templates for your own numbers). These are examples only — plug in your actual outstanding balance, rates and fees.

Scenario A — clear win (example numbers):

• Outstanding balance: R1,200,000
• Remaining term: 20 years (240 months)
• Current rate: 9.5% p.a. → Current monthly repayment ≈ R11,185.57
• New rate: 8.0% p.a. → New monthly repayment ≈ R10,037.28
• Monthly saving ≈ R1,148.29
• Switching costs (estimate) = R25,000 (attorney + valuation + admin)
• Break-even months = 25,000 ÷ 1,148.29 ≈ 22 months (≈ 1 year 10 months)
• Total interest remaining at 9.5% ≈ R1,484,538; at 8.0% ≈ R1,208,947 → Net saving over term after switching cost ≈ R250,590.

Interpretation: if these numbers reflect your case and you plan to stay more than ~22 months, switching looks attractive.

Sensitivity checks (why these matter):

• If switching costs were R40,000 instead, break-even becomes ≈ 35 months.
• If the new rate was only 8.8% (smaller improvement), monthly saving drops to ≈ R543 and break-even with R25,000 jumps to about 46 months (nearly 4 years).
• If you only have 5 years left on the bond, the monthly saving is smaller and you might not recoup costs — switching becomes less attractive.

(Those precise numbers above are calculated from the standard mortgage formula: M = P × r / (1 − (1 + r)^−n), where r is monthly rate and n number of months.)

Things people often forget (gotchas)

• Valuation fee — the new bank may require a fresh valuation. This cost is sometimes refundable if the bond registers.
• Insurance changes — changing banks can change the way house or life cover is handled; double-check continuity.
• Prepayment/excess payment rules — some banks limit extra repayments or charge fees to make big extra payments in early years.
• Credit checks — a hard credit enquiry can slightly affect your credit score. Multiple credit applications in a short period can be harmful.
• If you refinance to borrow more (cash out), your monthly repayment may increase and you may pay more interest overall. Don’t treat the mortgage as free money.
• Contract language — read the fine print about penalty events, what counts as default, and whether you’re tied to bundled products.

When it’s usually worth switching

• The new rate is materially lower (not just a decimal point) and your expected stay > break-even time.
• You can secure useful features (offset account, extra payments) that align with your plans.
• You don’t have large fixed-rate breakage penalties.
• You’re consolidating very expensive debt into mortgage debt and understand the long-term implications.

When it’s usually not worth it

• You plan to sell or move within a few years and break-even is longer than your stay.
• You’re on a fixed product with heavy breakage penalties.
• The monthly saving is small relative to switching costs (e.g., you’d save R200–R300/month but pay R30,000 in fees).
• You need to take extra cash out that wipes out the savings.

Quick decision formula (make it simple)

1. Get all costs (old bank cancellation + new bank fees) → Total switching cost.
2. Get current monthly payment and new monthly payment → Monthly saving.
3. Break-even months = Total switching cost ÷ Monthly saving.
4. If break-even < planned time to stay, consider switching; otherwise don’t.

Final practical tips

• Always ask your current lender to match the best offer — often it’s cheapest to stay and keep the relationship.
• Get every fee in writing from the new bank before you proceed.
• Do the math with exact numbers (redemption figure, exact fees) — approximate guesses can mislead.
• If in doubt, run a worst-case (higher fees, smaller rate drop) sensitivity check to see how robust the decision is.

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Lake Properties Pro-Tip: Don’t let a “nice sounding” lower headline rate be the only factor — always do a side-by-side total cost comparison (monthly payment, total interest over remaining years and switching fees). If the break-even point is longer than the time you realistically expect to live in the property, walk away — otherwise negotiate hard with your current bank first.

 Lake Properties                     Lake Properties  

What 20 questions do you ask the seller of a potential house.

Lake Properties                       Lake Properties

Lake Properties                     Lake Properties

1. Why are you selling?

This is the ice-breaker. If the seller is relocating for work, downsizing, or moving closer to family, it’s usually straightforward. But if they mention “maintenance is too much” or “the area isn’t what it used to be,” that could hint at hidden problems (crime, noise, upkeep).
👉 Red flag: vague or defensive answers.

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2. How long have you owned the property?

Longer ownership means a deeper history you can probe. Short ownership (less than 2 years) may indicate they discovered issues quickly and want out.
👉 Pro-Tip inside this: compare their answer with the title deed history.

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3. How long has the property been on the market and have you had any offers?

A house sitting for 6+ months without serious offers might be overpriced or have underlying issues. If there were offers that fell through, ask why — finance rejection? Bad inspection?

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4. What’s your asking price and how flexible are you?

This tests motivation. A seller who says, “we’re open to reasonable offers” is more negotiable than one saying, “our price is firm.” Use this info when structuring your bid.

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5. What’s included in the sale?

Fixtures, appliances, pool pumps, irrigation systems, blinds, chandeliers — sellers sometimes remove items you assumed were included. Always pin this down in writing.

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6. Is the property vacant or occupied?

If vacant, you can take transfer quicker. If tenants live there, you inherit their lease — you’ll need to check the contract and rental terms.

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7. Are there any known defects, leaks, or maintenance issues?

This is where honesty is tested. Sellers in South Africa are legally required to disclose defects, but some downplay them. Get specifics: roof leaks, damp patches, faulty wiring.

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8. Have you had any insurance claims?

A house with multiple insurance claims (burst geyser, roof damage, fire) might have weak infrastructure or recurring risks. Ask for proof from their insurer if possible.

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9. Have you done any renovations or additions?

This uncovers upgrades (new kitchen, added bedroom, extended patio). Ask for exact years. Renovations older than 10 years may soon need updating again.

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10. Were renovations permitted and do you have approved plans?

Illegal structures (like an unapproved granny flat) can cause major transfer headaches and even demolition orders. Always ask for stamped municipal plans.

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11. When were major systems last serviced/replaced?

Roofs, geysers, plumbing, and electrical boards all have lifespans. A geyser older than 10 years might fail soon; wiring older than 20 years may need upgrading. This gives you bargaining power on price.

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12. Any history of damp, mould, or drainage problems?

These are costly silent killers. Smell closets, check corners, and ask about water pooling during rains. Damp is hard to fix and can harm health.

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13. Any pest issues?

Termites, wood-borer, and rodents can quietly eat through the structure. If they say it’s been treated, ask for the pest control certificate.

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14. Any structural issues or cracks?

Not all cracks are serious — some are cosmetic. But wide diagonal cracks or sloping floors suggest foundation movement. Always follow up with an engineer’s report if you suspect structural risk.

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15. Are the boundaries and title clear?

Sometimes a neighbour’s wall or fence is built on your land. Servitudes (e.g., “municipality can dig on your property for water pipes”) limit your control. Request the title deed diagram.

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16. Any disputes with neighbours, HOAs, or municipality?

Noise, pets, unpaid levies, or zoning fights can poison the experience of living there. Sellers may brush it off, but listen closely to their tone.

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17. Any outstanding municipal rates, taxes, or levies?

In South Africa, you can’t transfer a property unless these are settled, but delays happen if there are arrears. Better to ask early and avoid transfer surprises.

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18. Any upcoming projects or zoning changes nearby?

That quiet street could become a busy road if a new development is approved. Sellers sometimes know, sometimes pretend not to — verify with the municipality too.

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19. Do you have recent inspection reports, utility bills, and disclosures?

Bills show you the real cost of living there — water, electricity, levies. A disclosure form forces the seller to list known defects on paper.

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20. What’s your preferred sale process and timeline?

This manages expectations. If they want a 30-day transfer but your bond approval will take 60 days, you need to negotiate.

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🎯 Lake Properties Pro-Tip

Asking questions is only half the job — verify everything. Sellers may forget, understate, or gloss over details. Always:

• Match their answers with official documents (title deeds, municipal plans, compliance certificates).
• Put all promises in the Offer to Purchase — verbal agreements don’t count.
• Hire your own independent inspector, even if the house “looks fine.”

👉 The smartest buyers treat the seller’s answers as a first filter, not the final truth.

Lake Properties                       Lake Properties

What if on party to the sale dies before the process is completed

Lake Properties                      Lake Properties

Lake Properties                      Lake Properties

Here’s a more detailed explanation of what happens in South Africa when one party dies before a property transfer is completed, broken down by stages of the process:

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1. A Deed of Sale Has Been Signed but Transfer Not Yet Finalised

This is the most common scenario. Here's what happens depending on which party dies:

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If the Seller Dies:

• The signed Deed of Sale (Offer to Purchase) is still valid.
• The property now falls into the deceased seller’s estate.
• The executor of the estate, once appointed by the Master of the High Court, is responsible for completing the transaction.
• The buyer must wait until the executor is officially empowered to act (via Letters of Executorship).
• The property transfer will be registered in the buyer’s name, but only once the Master has approved and the executor signs the necessary transfer documents.

Possible Delays:

• Estate reporting process (usually 4–8 weeks or more).
• Delay in appointing executor.
• Clearance certificates from SARS and municipality may be delayed if the estate is complex.

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If the Buyer Dies:

• The buyer’s rights under the sale agreement are now held by their estate.
• The executor of the deceased buyer’s estate must assess whether to proceed with the purchase (e.g., does the estate have funds, is the purchase still desirable?).
• If the executor decides to proceed, the property will be transferred either:
  • Directly to a named heir or beneficiary, or
  • Into the estate, then later transferred or sold again.

Important:

• If the sale is a cash transaction and payment has been made, the executor has a legal and practical reason to proceed.
• If the purchase was to be financed with a bond, and the bond wasn’t finalized before death, the deal may collapse unless the estate can fund it.

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2. No Deed of Sale Was Signed Before Death

In this case, there is no legally binding contract. Death cancels any informal or verbal arrangements. The executor of the deceased’s estate is free to sell (or not sell) the property or decide whether to proceed with a new sale.

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3. Deceased Was Married

South African marital regimes can affect property transfer after death:

• In Community of Property: The surviving spouse owns half the estate and must be involved in the transaction.
• Out of Community of Property: The deceased’s estate owns the entire property (or their share), and only the executor can proceed.
• With Accrual: Depends on the value of each estate at death; might require accrual calculation before transfer.

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4. Other Practical Considerations

• Transfer Duty: Payable by the buyer, regardless of whether they are alive or deceased.
• Conveyancer Role: Must work closely with the executor and Master’s Office.
• Wills and Beneficiaries: May determine whether heirs are entitled to inherit or sell the property if no transfer occurs.

A problem property doesn’t have to be a deal-breaker. With the right strategy, these homes can turn into excellent investments. Always request a detailed inspection report, verify municipal approvals, and lean on an experienced estate agent. At Lake Properties, we specialize in identifying potential issues early and guiding buyers and sellers to successful, stress-free transactions. Remember: informed decisions make all the difference.

If you know of anyone who is thinking of selling or buying property,in Cape Town,please call me 

Russell Heynes 

Lake Properties 

083 624 7129

www.lakeproperties.co.za 

info@lakeproperties.co.za 

Lake Properties                       Lake Properties

How does the body corporate recover fees from a delinquent sectional title owner .Why is it important to recover the debt owed

Lake Properties                       Lake Properties

Lake Properties

1) Quick legal background — who must pay and why

Every owner in a sectional-title scheme is legally obliged to pay contributions (levies) to the body corporate so the scheme can run (maintenance, insurance, security, utilities, reserve fund, etc.). The main law governing levy liability and collection procedures is the Sectional Titles Schemes Management Act (STSMA).

2) Early procedural steps the body corporate should follow (and why they’re required)

The STSMA and the Prescribed Management Rules set out governance and certain procedural duties (for example, trustees must notify owners of levy amounts and due dates within prescribed timeframes). Best practice and the rules require clear written notices so owners can’t later claim they didn’t know what was due. CSOS guidance and the PMRs also require that certain notices and processes be followed before formal enforcement steps.

Typical practical sequence (timelines can vary, but these are common stages):

1. Monthly statements & reminders — continue issuing monthly levy statements. (Paper/e-mail and a clear ledger help later proof.)
2. Friendly reminder → final demand — if the levy is overdue, the trustees/manager send a formal letter of demand. PMR rules require that owners are given notice of levies and the consequences. Early, firm communication often resolves cases without legal costs.
3. Trustee resolution to charge interest / collection fees — if trustees decide, the body corporate may charge interest on overdue amounts (the PMRs permit this but interest must comply with statutory caps such as those in the National Credit Act). The trustees must pass a written resolution to apply interest/collection rules.
4. Negotiation / payment plan / mediation (CSOS) — many schemes try to agree on payment plans; the Community Schemes Ombud Service (CSOS) can assist or adjudicate disputes between owners and bodies corporate. Engaging CSOS can be faster and cheaper than full litigation.

3) When the body corporate uses lawyers and goes legal

If reminders and negotiation fail, the usual escalation is:

• Hand over to attorneys / issuing a formal demand on attorney letterhead — this signals seriousness and often includes an intention to claim legal costs. Many conduct rules and PMR provisions allow the body corporate to recover “reasonable” collection costs from the defaulting owner. Whether every legal cost is recoverable depends on the scheme’s rules and the courts’ reasonableness tests — but attorneys’ fees commonly form part of the claim.

• Summons / court action — the attorneys can institute debt proceedings in the Magistrates’ Court (for smaller debts) or High Court (for larger or complex matters). If the court grants judgment, enforcement remedies become available.

4) Enforcement remedies after judgment (what can actually be done)

Once the body corporate has a court judgment or other enforceable instrument, common remedies include:

• Garnishee (attachment) orders — the court can order direct attachment of funds (a bank account) or of a debtor’s employer salary (emoluments/garnishee) subject to statutory protections for subsistence.
• Attachment and sale of movable property — sheriffs can attach and sell movable assets.
• Sale in execution of the unit — where necessary and after following legal procedures, a sheriff sale of the unit can occur and proceeds applied to pay creditors (this is a serious, last-resort option). In extreme cases the body corporate has in the past applied for sequestration of a debtor; sequestration can result in sale by the trustee of the insolvent estate so creditors are paid in order provided by insolvency law.

Important—transfer and the “levy clearance”: a conveyancer must certify (under s.15B of the Sectional Titles Act) that the seller’s levies are paid or secured; in practice a body corporate can therefore block transfer of a unit where levies are unpaid — the levy-clearance process is powerful leverage. Courts have also limited unlawful use of clearance certificates to force unrelated compliance: the certificate may be withheld for unpaid amounts but should not be used to coerce compliance with non-financial matters. Recent case law therefore requires trustees to use the clearance mechanism correctly.

5) Costs and interest — who pays what?

• Interest on arrears: PMRs permit charging interest on overdue levies, but interest must be set by a trustee resolution and must not exceed the maximum rate set under the National Credit Act (and should be applied in line with the PMRs). That prevents unreasonable “penalty” interest.
• Legal fees & collection expenses: if the scheme’s rules permit it and the costs are reasonable, legal and collection costs can be recovered from the defaulting owner as part of the debt. The courts assess reasonableness if contested. If some costs are disallowed, the shortfall may have to be met from the administrative account (i.e., by other owners).

6) Special situations — tenant, sequestration, mortgage bondholder

• Tenant / rental income: CSOS orders can in some circumstances direct a tenant to pay rent directly to the body corporate until arrears are cleared (co-respondent procedures apply). This is useful when owners rent out units and do not pay levies.
• Sequestration / insolvency of owner: if the owner is sequestrated, the body corporate becomes a creditor in the insolvent estate. Sometimes bodies corporate have sought sequestration to enforce payment; the insolvency process can result in the sale of the unit and levies being paid as a cost of realisation in priority over some claims.
• Bondholders (banks): a mortgage bondholder’s secured claim usually ranks ahead of ordinary levy claims in many execution contexts, but depending on rules of insolvency and sale procedures, the levy claim can sometimes be treated as a “cost of realisation” — specifics depend on the facts and court orders.

7) Why recovering levies matters — the practical reasons (short & long term)

1. Cash-flow & service continuity: levies pay common-area electricity, water, security, cleaning and insurance. Without funds these services fail immediately. (Schemes still have mortgage-like bills to pay.)
2. Fairness & moral hazard: unpaid levies shift costs to paying owners and encourage more defaults if unchecked. Prompt recovery discourages deliberate non-payment.
3. Property values & maintenance: chronic arrears cause deferred maintenance, which lowers rental/value and makes the scheme less attractive to buyers.
4. Insurance & legal risk: if the body corporate can’t pay insurance premiums or municipal accounts because of levy shortfalls, everyone is exposed to much higher risk and costs.

8) Practical, usable tips for trustees (to prevent and manage arrears)

• Adopt clear levy and collection rules in the conduct rules and record trustee resolutions for interest and recovery steps.
• Communicate early and often: consistent monthly statements, and a short first-reminder timeline, cut down disputes later. Keep a clear ledger.
• Use payment plans sensibly: where owners are genuinely struggling, a documented payment arrangement (written and signed) often yields better returns than immediate litigation.
• Use CSOS before costly litigation: CSOS adjudication can be quicker and cheaper for disputes and payment orders.
• If you go legal, check recoverability: instruct lawyers who specialise in sectional-title levy recovery and confirm what costs are likely to be recovered if a matter goes to judgment.

9) What owners should do if they can’t pay

• Tell the trustees early and propose a realistic plan — trustees are often willing to avoid litigation if a sustainable plan is proposed.
• Don’t ignore final demands or court papers — once judgment is granted, enforcement remedies are real and can include garnishee orders or execution against the unit.

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Lake Properties Pro-Tip

Treat levy recovery like managing a building’s “cash arteries” — act early, document everything, and balance firmness with practical repayment options. A small amount recovered early (plus a reasonable repayment plan) usually saves the scheme far more in legal fees, distress and lost value than chasing a large debt later.

If you know of anyone who is thinking of selling or buying property,in Cape Town,please call me 

Russell Heynes 

Lake Properties 

083 624 7129 

ww.lakeproperties.co.za 

info@lakeproperties.co.za 

Lake Properties                       Lake Properties

What should I look out for,in an offer to purchase on a house?

Lake Properties                     Lake Properties

Lake Properties                      Lake Properties

• Purchase price (headline number) — obvious, but don’t evaluate it alone.
• Deposit (earnest money / good-faith payment) — amount, payable when, and where it will be held.
• Financing clause — is the offer cash, bank-preapproved, or subject to finance approval? Look for bank pre-approval letter vs. mere “intention to apply.”
• Suspensive conditions / contingencies — finance, sale of buyer’s property, building inspection, etc., including the exact time periods to satisfy those conditions.
• Occupation / possession date — who lives there and when; is occupation on transfer or earlier? Any rental to buyer before transfer (occupational rent)?
• Fixtures & fittings schedule — what the buyer expects to be included (curtains, fridge, alarm, gates, light fittings).
• Repairs and inspection outcomes — if the buyer requests repairs or credit, are quotes attached? Who pays?
• Who pays costs — who pays transfer duty, bond registration, conveyancer fees, occupational rent, rates clearance? (In SA buyers usually pay transfer & bond costs, but confirm.)
• Special clauses — “voetstoots” (sold as-is), seller guarantees, leasebacks, seller financing, or occupancy before transfer.
• Buyer identity & capacity — individual, trust, company — does the signatory have authority?
• Timing & expiry of offer — how long is the offer valid?

2) What each item actually means (and why it matters)

• Price vs. net proceeds
  The headline price is not what you take home. Consider: agent commission, repairs you’ll accept, rates clearance, capital gains implications, and transfer costs (usually buyer pays, but if you agree to any contribution that affects your net).
• Deposit size & security
  Bigger deposits = stronger commitment. Also check whether deposit is a bank guarantee, cash into the agent’s trust account, or conditional. Confirm when it becomes non-refundable (if buyer defaults).
• Cash vs. bond (mortgage)
  Cash shortens the process and is lower risk. Bond approvals add risk — banks can decline or take longer. A genuine, current bank pre-approval letter reduces the risk.
• Suspensive conditions
  Each condition is a potential reason for the sale to fall through. “Subject to sale of buyer’s property” is especially risky and can add indefinite delay. Limit the number and duration of conditions.
• Occupation before transfer
  Allowing a buyer to occupy before transfer creates liabilities (insurance, damage, occupational rent). If you accept occupation before transfer, get a formal written occupation agreement, proof of insurance, and indemnity.
• Voetstoots / Disclosure
  “Voetstoots” means the buyer accepts the house as-is except for deliberate concealment. It protects sellers for unknown defects, but doesn’t cover fraud. Consider disclosing known defects in writing to avoid later disputes.
• Company/trust buyers
  If the buyer is a company/trust, ask for resolution/signed authority and proof that funds can be released — these sales can require additional documentation and take longer.
• Timing
  Shorter transfer/occupation timelines may suit sellers who want to move fast. But aggressive timelines might not suit buyers who need bond approval; keep realistic but advantageous deadlines.

3) Red flags (stop & probe before accepting)

• Very low deposit (or none).
• Many suspensive conditions (especially “subject to sale of buyer’s house”).
• No evidence of financing / preapproval.
• Buyer wants immediate occupation before transfer without a solid occupation agreement.
• Buyer is an unfamiliar company/trust and can’t supply director/trustee resolution or proof of funds.
• Verbal changes or side agreements not captured in the written offer.
• Ambiguous wording (dates, who pays what, what’s included).
• Requests for the seller to carry a loan or to provide vendor finance unless you’re comfortable and have legal advice.
• Extremely tight deadlines that might force you to accept poor paperwork.

4) Practical negotiation moves & sample wording

Tactics:

• Prioritise offers that minimise conditionality and maximise certainty (cash, big deposit, pre-approved).
• You can accept an offer subject to changes — issue a counter-offer that amends problem clauses.
• Keep the property on the market (subject to agent instructions) until the buyer’s conditions are fulfilled — unless you explicitly take it off with clear legal protection.
• Use the deposit and shorter suspensive timeframes as leverage.

Sample counter-offer language (short, practical):

• Increase deposit / shorten finance period:
  “Accepted at R________, subject to a 7.5% deposit payable into the agent’s trust account within 3 business days and bank finance approval within 14 days (previously 21). Occupation on transfer unless otherwise agreed in writing.”
• Remove subject-to-sale clause:
  “We accept provided the sale is not subject to the buyer selling their property. If buyer needs to sell, deposit must be 10% and finance approval timeframe reduced to 10 days.”
• Occupation / insurance protection:
  “Occupation prior to transfer is only permitted under a signed occupation agreement and proof of indemnity insurance naming the seller and proof of the buyer’s homeowner insurance submitted to the conveyancer.”
• Repairs / credits:
  “Seller to repair leaking roof prior to transfer up to R_____. Any additional works requested to be covered by buyer unless authorised by seller in writing.”

5) Quick offer evaluation checklist (printable)

• Offer price: ______
• Deposit amount & type (cash/guarantee): ______
• Proof of funds / preapproval provided? Y/N — attach doc
• Suspensive conditions (list & days to satisfy): ______
• Occupation date & terms: ______
• Repairs requested: ______ / Estimated cost: ______
• Buyer structure (individual / trust / company): ______ / Proof of authority? Y/N
• Transfer & bond costs to be paid by (buyer/seller): ______
• Offer expiry date: ______

6) Simple comparative scoring (out of 100)

Weighted example — multiply & total to compare offers quickly:

• Price (35 points) — score relative to asking/market.
• Deposit strength (20 pts) — size + type.
• Finance certainty (20 pts) — cash / preapproved / subject to bank.
• Conditions (10 pts) — fewer = higher score.
• Occupation & timing (10 pts) — suits you = higher score.
• Repairs / credits requested (-5 to +5) — will cost you or save time.

Example: Offer A: Price 32/35, Deposit 18/20, Finance 15/20, Cond 8/10, Timing 8/10, Repairs -2 → Total 79/100.
Use this to compare both numeric and non-numeric strengths.

7) Paperwork & verification to request immediately

• Written offer on a standard sale agreement form (not text messages).
• Buyer ID and proof of residence.
• Bank pre-approval letter or proof of funds for cash offer.
• Authority documents for company/trust buyers.
• Written list of included items (fittings & fixtures).
• Confirm who will be the conveyancer and their contact details.
• Confirm where the deposit will be held (trust account, conveyancer’s trust).

8) When to accept, when to counter, when to say no

Accept if: clean offer (good deposit, cash or solid pre-approval), few conditions, timeline that suits you, and buyer identity is verified.
Counter if: price is good but one or two items worry you (deposit, timing, certain condition) — fix those items.
Say no if: buyer is highly conditional, deposit is tiny, or they can’t prove funds/authority — unless you want to keep the house on the market and use their offer to negotiate with others.

9) Practical logistics after acceptance

• Give the signed offer to your conveyancer immediately and instruct them to start transfer process.
• Request the buyer’s conveyancer contact and confirm who holds the deposit in trust.
• Keep copies of all correspondence and bank slips.
• Coordinate practical items: rates clearance, outstanding accounts, keys, meter readings, and any agreed repairs.

10) Common seller mistakes (avoid these)

• Taking the house off the market too early without a secure deposit/payment.
• Relying on verbal promises.
• Signing away rights in the sale agreement without legal review.
• Accepting occupation before transfer without indemnity and proof of insurance.
• Not getting clear proof of buyer’s financing or authority.

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Lake Properties Pro-Tip

Always have your conveyancer review the exact written offer before you sign or accept. A small change in wording (dates, who pays what, or an ambiguous condition) can change your legal obligations significantly. If you’ve got more than one solid offer, ask each buyer for proof of funds and a short deadline to remove conditions — the one who demonstrates certainty and speed usually wins.

Lake Properties                     Lake Properties