Signed a Bond quotation with agency from Nedbank--I want to cancel

[khozamtho]

Hi,

I have bought a new development house,i just saw the land where it will be built. Now when I was about to go sign with attorneys,I was told that it is not a stand alone house, Its like a hostel or a complex. they have started building other houses,so I went to see. I dont like it. I told them I want to cancel. But I heard that I must pay damage or cancellation fees from people. I called the agency,they said I dont have to pay anything ,but I dont trust them because before I was told i'm getting a stand-alone and now i'm not.

Is it true that I have to pay fees and how much do they cost,my bond is for R310 000???? I need to know because if its too much like R40000 then i would have to take the bond,since i dont have a choice,and maybe...i will see what happens next.

[Dave A]

It can be a bit tricky buying off plan, particularly if you're not familiar with the developer's work.

I called the agency,they said I dont have to pay anything ,but I dont trust them because before I was told i'm getting a stand-alone and now i'm not.

Just get it in writing...

[AndyD]

What documents have you signed so far with the agency or developers? Do you have copies of these documents?

[khozamtho]

I have only sign the offer to purchase and the Quotation from the bank. I have a copy of the quotation stating the price of the bond and installment amount. It also says its legally binding(i don't know what this means). It seems that the agency or developers is one company.

[khozamtho]

the manager called now,he said I must pay their commision and lawyers fees,because they have already draft the contract. which comes to around R20 000.
I called Clientelel legal since I have a policy with them and they said,they don't cover such matters. I think i just have to take it and avoid too many issues,I would see what I can do with it later. I dont know why this agency people lie ...

[IanF]

I would try the consumer commission
An unfair business practise is:

It is any business practice which directly or indirectly has or is likely to have the effect of:
Harming the relations between businesses and consumer.
Deceiving any consumer.
Unfairly affecting any consumer.

Website contact details

The legal policy not helping is not very good either

[Justloadit]

I hate these legal services which collect your monthly payment, and when you need them they simply say that it is not their port folio. Well then what is their portfolio, and what service are they offering for this monthly fee. - Always ask questions, and if you do not understand the answer, then ask them to explain it again, and again until you understand. Why do you just accept Clientelel's response?

Maybe you should approach a lawyer, which will cost you far less than the deposit. Take the papers with you and he will advise you. Why should you continue with something that is going to burden you for the next 20 years. Remember that there is the CPA to help you in this task as well, and when property is involved or what is referred to as "Fixed Assets", very specific laws apply. If they are found lying, then you are not required to honour the agreement and can cancel and get your deposit back, as the agreement was made under false pretenses.

[Dave A]

Any allowable cool-off periods in terms of the CPA might have expired, but there's always the issue of misrepresentation as an option to pursue (perhaps against Clientele Legal as well as the developer )

I think i just have to take it and avoid too many issues,I would see what I can do with it later.

One of my early thoughts on reading your first post went some way down a similar line. The mature approach might well be to pay more attention to whether you're getting value first, and worry about whether you like what you're getting second. That way you could sell on with a reasonable return...

[BusFact]

I called Clientelel legal since I have a policy with them and they said,they don't cover such matters.

What? Thats ridiculous. I'd cancel that policy immediately. Without knowing details, they advertise to assist you in legal matters, not to pick and choose which ones.

[khozamtho]

thanks for your advice guys.

I have decided to take the bond,since its a new development and i'm not paying any deposit,not even registration cost. BUT if i have to get another lawyer then i have to pay him,besides I went to check the place again,i think the is a chance of the value going up. I will stay there for sometime and if i don't like it, I can move out and rent it out.

@BusFact, yes this Clientele legal thing is very useless, Its the second time they are giving me this answer. Before signing the bond documents,i asked them to please look at the contract and see if maybe the are some hidden things and maybe explain the legal jargon that was there. They said they don't deal with such, if they did help me,maybe this would have been avoided.