PROPERTY PURCHASE CHECKLIST by sdsdfqw21

VIEWS: 64 PAGES: 10

									                                                PROPERTY PURCHASE CHECKLIST

T h i s l i s t i s n o t m e a n t t o b e a l l . I t i s m e a n t t o b e a s t a r t i n g p o i n t f r o m wh i c h o n e c a n t a k e t h e
necessary points. Over analysis could also lead to not concluding a transaction.


Essential checks to be completed prior to the purchase of any Commercial, Retail or Industrial
property.

Property Name

Address of Property



1.      COMMERCIAL PROPERTY FINANCE

        A s m o s t c o m m e r c i a l p r o p e r t y i n v e s t m e n t s h a v e s o m e f o r m o f fi n a n c e , w e wi l l s t a r t h e r e
        a s t h i s i s a n a r e a t h a t s o m e t i m e s t a k e s m u c h wo r k a n d t i m e t o g e t i n o r d e r . T h e l i s t
        b e l o w i s n o t f i n i t e , b u t d o e s g i v e a n i n d i c a t i o n o f t h e t y p e o f i n f o r m a t i o n b a n k s r e q ui r e .
        Please expect a commercial property finance application to be a far harsher process
        than any residential one.

         1.1         F u l l n a m e o f B o r r o wi n g E n t i t y a n d S h a r e h o l d e r s t o g e t h e r wi t h B a n k i n g d e t a i l s i .e .
                     Bank, Branch, Account number.
         1.2         Copy of registration/ company documents/ trust deed/ letter of authority.
         1.3         L a t e s t s i g n e d a n d a u d i t e d f i n a n c i a l s o f b o r r o wi n g e n t i t y (m u s t b e r e a s o n a b l y
                     u p - t o - d a t e - b a n k s d o n o t a c c e p t f i n a n ci a l s o f y e a r s b e y o n d 1 y e a r b a c k )
         1.4         L a t e s t s i g n e d a n d a u d i t e d f i n a n c i a l s o f t r a d i n g e n t i t y a s we l l a s m a n a g e m e n t
                     accounts not older than 2 months.
         1.5         I f a n e x i s t i n g e n t i t y i s p u r c h a s i n g c o n fi r m a t i o n o f a d d r e s s (r a t e s b i l l , e t c ) .
         1.6         S i g n e d a n d d a t e d p e r s o n a l s t a t e m e n t s o f A s s e t s a n d L i a b i l i ti e s o f s h a r e h o l d e r s /
                     sureties not older than 3 months.
         1.7         Bank details of all sureties
         1.8         C o n f i r m a t i o n o f a d d r e s s o f s u r e t i e s (r a t e s , t e l e p h o n e b i l l , e t c )
         1.9         Copy of ID of sureties
         1.10        D e t a i l s o f p r o p o s e d / e x i s t i n g t e n a n t s , s h o wi n g l e a s e t e r m , r e n t a l p a y a b l e ,
                     e s c a l a t i o n s , s i z e o f s p a c e l e a s e d a n d c o n fi r m a t i o n o f m o n t h l y e x p e n s e s .
         1.11        E r f d i a g r a m wi t h s i z e o f e r f / s e c t i o n a l t i t l e d e s c r i p t i o n .
         1.12        Finance type and amount required.
         1.13        CV and background of you and your business.
         1.14        F a m i l y t r e e wi t h a l l o t h e r l e g al e n t i t i e s (i n c l . r e g n u m b e r s )
         1.15        Copy of signed deed of sale.
         1.16        V a l u e , s o u r c e a n d t i m i n g o f y o u r o wn c o n t r i b u t i o n .
         1.17        I f b u i l d i n g l o a n , d r a wi n g s , s p e c i f i c a t i o n , p r o f e s s i o n a l t e a m a n d c o s t i n g .




                                                 Guy de la Porte                   Tel: 083-400-2121

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2.      THE SITE

         2.1         L o c a l i t y P l a n s h o wi n g s u r r o u n d i n g a r e a a n d n a m e s o f a d j a c e n t s t r e e t s
         2.2         Site Area from a surveyors diagram or General plan or preferable, Diagram Deed
                     wi t h d i m e n s i o n s o f s i t e
         2.3         S e r v i t u d e s . O b t a i n (i f p o s s i b l e ) l o c a t i o n , a r e a , c o p i e s o f d i a g r a m s , d u r a t i o n ,
                     b e n e f i ci a r i e s . E g . Ri g h t s o f Wa y , E s k o m , P o s t O f f i c e , M u n i c i p a l , R o a d wi d e n i n g ,
                     parking, water rights, mineral rights severed from ownership?., surface rights
                     (m i n i n g ) , u n - r e g i s t e r e d s e r v i t u d e s s u c h a s s q u a t t e r s a n d r i g h t s o f w a y .


3.       LAND AND BUILDING INSPECTION

        A v i si t t o t h e s i t e t o c h e c k t h a t l a n d a n d b u i l d i n g s c o n f o r m t o wh a t i s i n d i c a t e d b y t h e
        building plans, site diagram, servitude diagrams etc.

         3.1         Description of:

                                a)    T h e s i t e (s l o p e , l a n d u s e , c o n d i t i o n )
                                b)    T h e s u r r o u n d i n g a r e a (a d j a c e n t b u i l d i n g s , v i e w , i m p r ov i n g a r e a s ? )
                                c)    Room for expansion?
                                d)    Possible contamination? If you suspect any user or previous users of
                                      t h e p r o p e r t y we r e d e a l i n g wi t h a n y h a z a r d o u s c h e m i c a l s o r m a t e r i a l s
                                      such as asbestos then get a report from an environmental expert.

         3.2         Building:

                                a ) I n s p e c t i o n o f b ui l d i n g s – o n e m u s t s e e a l l a s p e c t s o f t h e p r o p e r t y a n d
                                    b u i l d i n g s – a l l d a r k c o r n e r s , s t a i r w e l l s , l i f t r o o m s , a i r - c o n d i ti o n i n g
                                    plants, vacant and unused areas, etc.
                                b ) D e p e n d i n g o n t h e s i z e a n d n a t u r e o f t h e p r o p e r t y , o n e m a y wi s h t o u s e
                                    t h e s e r v i c e s o f v a ri o u s p r o f e s si o n a l s t o i n s p e c t a s p e c t s o f t h e p r o p e r t y
                                    a n d v e ri f y t h a t t h e y a r e i n wo r k i n g o r d e r . (e g . a i r - c o n d i ti o n i n g o r
                                    lifts). Such professionals may also give one a better understanding of
                                    estimates of future maintenance.
                                c) Roofing, structure, any cracks?.
                                d ) P o we r s u p p l y .
                                e) Fixtures, fittings, plant and equipment not to be the subject of a lease
                                    agreement, credit sale or hire purchase
                                f) Notarial hypothecation of movables?
                                g ) M a t e r i a l s a n d fi n i s h e s u s e d – d u r a b i l i t y
                                           − maintenance implications
                                           − international standards

         3.3         If demolition or alteration contemplated:

                                a)    Cost estimates plus fees
                                b)    Estimates of timing
                                c)    Re-housing of tenants/removal of leases
                                d)    Proposed new tenants

        Bear in mind that different locations have different nuances, for example, in Gauteng,
        t h e r e m a y b e s i n k h o l e s o n e m u s t l o o k o u t f o r : i n K wa - Z u l u N a t a l , t h e r e m a y b e a r e a s
        susceptible to slide, etc.



                                                Guy de la Porte                   Tel: 083-400-2121

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4.       SELLER INFORMATION

         4.1      Who is the Seller – registered name.
         4.2      I f a n i n d i v i d u a l , h o w m a r r i e d a n d i n wh i c h c o u n t r y d i d t h e y g e t m a r r i e d (y e s , t h i s
                  d o e s h a v e a n e f f e c t o n y o u r t r a n s a c t i o n ! ! ). I f i n d o u b t , g e t b o t h p a r t i e s t o si g n
                  sale agreement.
         4.3      Are they VAT vendors? – this is vitally important to the structure of the sale.
         4.4      Is the Seller resident in SA for tax purposes?.
         4.5      Ask the Seller of Agent if there are any material defects of the Property?.
         4.6      Dealing through a reputable agent, like Guy de la Porte Investment Properties,
                  wi l l e n s u r e y o u g e t t h e c o r r e c t i n f o r m a t i o n r e l a t i n g t o t h e S e l l e r .


5.       TITLE DEED

         Obtain copies of         l a t e s t D e e d s (c h e c k wi t h S u r v e y o r - G e n e r a l t h a t t h e y a r e t h e l a t e s t ) .
         Check:
                       a)         O wn e r a n d d a t e o f p u r c h a s e
                       b)         Description: location and area
                       c)         Conditions of title – especially restrictions and servitudes; any new
                                  restrictions or bonds?
                              d) 100% certain of the identity of the property
                              e ) Wr i t t e n r e p o r t f r o m a t t o r n e y s (a f t e r p e r f o r m i n g a D e e d s ’ R e g i s t r y
                                  search), confirming that there are no restrictions to the development
                                  o f t h e si t e .
                              f ) A t t o r n e y s t o s u p p l y l i s t o f d e e d a n d p ri o r d e e d s t o b e o b t a i n e d wh e n
                                  taking transfer.


6.       SELLER’S MORTGAGE BOND

         As all existing mortgage bonds normally have to be cancelled prior to registration of
         transfer into the purchaser’s name, there is generally no need to check on the Seller’s
         bond status.


7.       MUNICIPAL VALUATION: LAND AND IMPROVEMENTS

         7.1      M u n i c i p a l V a l u a t i o n C e r t i f i c a t e s h o wi n g :

                              a) Value of land and improvements
                              b ) O wn e r (c h e c k t h e n a m e o n T i t l e D e e d )
                              c ) A d d r e s s o f o wn e r

         7.2      Rates:

                              a) Present rates
                              b ) P o s s i b l e i n c r e a s e s (r e a s s e s s m e n t o f p r o p e r t y o r i n c r e a s e i n r a t e s l e v e l s
                                    c e n t s i n t h e R a n d ) a n d wh e n l i k e l y




                                              Guy de la Porte                     Tel: 083-400-2121

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8.        AVAILABILITY OF PUBLIC UTILITIES


                                  a)   W a t e r : s u f f i ci e n t p r e s s u r e f o r s p r i n k l e r s
                                  b)   E l e c t r i ci t y , s e w e r a g e , s t o r m wa t e r
                                  c)   Gas
                                  d)   How are the above charged?.
                                  e)   I s t h e S e l l e r / t e n a n t s u p - t o - d a t e wi t h u t i l i t y p a y m e n t s ? .

        E l e c t r i c a l c o m p l i a n c e c e r t i fi c a t e s ?
        G e n e r a l c o m p l i a n c e wi t h t h e O c c u p a t i o n a l H e a l t h a n d S a f e t y A c t ? . I f a l a r g e p r o p e r t y ,
        It is advisable to use the services of a specialist to check on compliance in this regard.


9.      TOWN PLANNING

         O b t a i n o f f i c i a l z o n i n g s h e e t o f t h e s i t e a n d e n s u r e t h a t i t c o v e r s t h e f o l l o wi n g , o r
         alternatively obtain this information

                                  a)   Use Zoning and definition of uses
                                  b)   Consent uses and definition
                                  c)   Building lines
                                  d)   Coverage and Definition
                                  e)   H e i g h t a n d d e fi n i ti o n
                                  f)   Parking Requirements
                                  g)   Any Annexures, Schedules or notes relating to the site

        If site has been re-zoned, obtain

                                  a) Photocopy of new zoning
                                  b) Conditions of Amended Scheme
                                  c) Has development contribution been paid?

        Zoning of surrounding areas

        A n y u n u s u a l c o n d i t i o n s a p p l y i n g t o t h e s i t e ? . D i s c u s s wi t h m u n i ci p a l t o wn p l a n n e r s o r
                  equivalent.

        Any probable changes to the present situation?


10.     BUILDING PLANS

        T h e a p p r o v e d b ui l d i n g p l a n s a t t h e l o c a l a u t h o r i t y m u s t b e c h e c k e d t o s e e t h a t t h e
        e x i s t i n g b u i l d i n g s o n t h e s i t e (a n d a l t e r a t i o n s ) h a v e b e e n a p p r o v e d . I f n o t , t h e s e l l e r s
        must undertake to have the alterations approved at their cost. Also compare the
        a v a i l a b l e r i g h t s i n t e r m s o f t h e z o n i n g wi t h t h e e x i s t i n g b u i l d i n g t o s e e wh e t h e r e x t r a
        rights exist.
                                     a) Age of building
                                     b ) H i s t o r y o f r e n o v a t i o n s ; a p p r o v e d b y m u ni c i p a l i t y ?
                                     c) Extra rights – height, coverage, land uses
                                     d) Adequate lifts
                                     e ) P r o t e c t i o n a g a i n s t wi n d , r a i n
                                     f) Ease of access
                                     g ) E f f i c i e n c y o f b ui l d i n g d e s i g n



                                                  Guy de la Porte                    Tel: 083-400-2121

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      O c c u p a t i o n / c o m p l e t i o n c e r t i fi c a t e s ? .

      Does it look like any boundaries have been encroached?. Conservative purchasers may
      wi s h a l a n d s u r v e y o r t o c o n d u c t a b a s i c s u r v e y .


11.   ACCESSIBILITY

      W h e r e a c c e s s i bi l i t y i s a n i s s u e , e g . A s i n s h o p p i n g c e n t r e s a n d i n d u s t r i a l p r o p e r t i e s ,
      c h e c k e x i s t i n g r o a d s a n d p r o p o s e d c h a n g e s ( wi t h d a t e s o f a n t i c i p a t e d i m p l e m e n t a t i o n ) .
      F o r a l l p r o p e r t i e s , e a s e o f a c c e s s i b i l i t y a n d p o s s i b l e r e s t r i c t i o n s o n a c c e s s i b i l i t y (e g .
      M u n i c i p a l , D e p a r t m e n t o f T r a n s p o r t , a n d P r o v i n c i a l c o n t r o l s ) a n d p r o p o s e d c h a n g e s ( wi t h
      dates) to be checked.

      11.1          Existing accessibility

                                a)    private vehicles
                                b)    public transport
                                c)    pedestrian
                                d)    rail siding or siding rights
                                e)    other

      11.2          Proposed accessibility, new;

                                a)    roads
                                b)    rail, bus
                                c)    pedestrian routes
                                d)    air

      11.3          C o n t a i n e r h a n d l i n g f a c i l i t i e s , o r wi t h i n F r e e D e l i v e r y a r e a o f a s t a t i o n (f o r
                    industry)




      11.4          a v a i l a bi l i t y o f o n - s i t e p a r k i n g

                                a) no. of bays
                                b ) r a t i o o f s i z e o f d e v e l o p m e n t (n o o f b a y s / 1 0 0 s q m )

      11.5          A c c e s s i bi l i t y t o S o ci a l s e r v i c e s , E n v i r o n m e n t a l Q u a l i t y
                    T h i s i s e s p e c i a l l y r e l e v a n t f o r r e s i d e n t i a l b ui l d i n g s ;
                    P r o x i m i t y a n d a c c e s s t o s h o p s , s c h o o l s , p a r k s , l i b r a r i e s , s p o r t s f a ci l i t i e s , n o i s e ,
                    p o l l u t i o n (t e m p e r a t u r e i n v e r si o n s , l o c a l i z e d p o l l u t i o n ) , e t c

      A n y p r o p o s e d R o a d wi d e n i n g s ?


12.   SOIL AND SUBSURFACE CONDITIONS

      Check for the existence of e.g. collapsing soils, heaving clays. Ecca Shales, dolomite,
      u n d e r m i ni n g , wa t e r c o u r s e s (5 0 y e a r f l o o d l i n e ) . I f n e c e s s a r y h a v e s o i l t e s t s d o n e a n d
      f l o o d l i n e d r a w n a n d a r e p o r t o n t h e i m p l i c a t i o n s o f s u b s o i l c o n d i ti o n s f o r f o u n d a t i o n s
      and development.



                                                  Guy de la Porte                      Tel: 083-400-2121

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13.   TENANT MIX AND DESCRIPTION

      13.1         Speak to the tenants to get and idea of the attitude towards the building and
                   l i k e l i h o o d o f t h e m r e n e wi n g t h e i r l e a s e s .
      13.2         Ensure tenants not all dependent on buoyant economy, not all in the same
                   economic sector.
      13.3         Turnover of tenants over the past 3 years
      13.4         Change in type and standard of tenant over past 3 years.
      13.5         D e s c r i p t i o n o f t e n a n t ’ s b u si n e s s
      13.6         Financial strength/credit rating of existing tenants.


14.   C U R R E N T L E A S E S (o b t a i n c o p i e s o f l e a s e s a n d c h e c k – e s p e c i a l l y f o r a m bi g ui t i e s . )

       14.1        Wh a t p r e m i s e s a r e r e n t e d ? I s i t c l e a r l y s t a t e d ?
       14.2        Check that the actual measured areas in the building said to be rented
                   c o r r e s p o n d wi t h t h e a r e a s s t a t e d i n t h e l e a s e .
       14.3        C o m p a ri s o n o f r e n t a l s wi t h m a r k e t : h i g h / l o w
       14.4        G r a p h o f l e a s e e x p i r y d a t e t o s h o w w h e n b u i l d i n g wi l l r e q u i r e l e t t i n g .
       14.5        Check that leases properly executed by all parties:

                              a)  Stamped correctly – refer latest Stamp Duty rules
                              b)  Signed and all pages initialed
                              c)  All annexures referred to accounted for and initialed
                              d)  If any guarantees – physical inspection essential, properly executed,
                                    signed, stamped
                              e) If any suretyships, properly executed, signed, stamped
                              f) All resolutions correctly signed and attached to leases?
                              g) Aliens: do they have necessary authority to enter into the lease
                              h ) F o r e i g n c o m p a n i e s : R e s e r v e B a n k p e r m i s s i on ? .

                   Check:

                              a) Are the leases current
                              b) Are rentals paid actual rentals as calculated in terms of the lease as
                                 s h o wn t o p u r c h a s e r
                              c) Are rental figures clearly stated and correctly calculated
                              d) Escalations
                                                             − A l l o we d
                                                             − amounts clearly stated
                              e) Commencement date clearly stated
                              f) Duration clearly stated
                              g) Any renewal options: length of option
                              h) Any sub-leases
                                                             − Cession
                                                             − lease assigned
                              i) Arrears due?
                                                             − what
                                                             − amount
                                                             − age analysis?
                                                             − ask if any bad payers
                                                             − credit check on any substantial tenants

                              j)   Other payments due?
                                                    −                   tenants extras
                                                    −                   loans
                                                    −                   e l e c t r i ci t y
                                                    −                   other

                                             Guy de la Porte                   Tel: 083-400-2121

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                             k)    A n y v a ri a t i o n s ?
                                                                  −     are they recorded
                                                                  −     executed
                                                                  −     stamped
                                                                  −     verbal variation

       Insurance
                             a)    Landlord obligations
                             b)    Rights of tenants
                             c)    Insurer
                             d)    Cost of insurance

       Any unusual or onerous clauses:

                             a) Devaluation
                             b) “Gold” clauses
                             c) Exclusivity
                             d) T h i r d p a r t y r i g h t s o r o b l i g a t i o n s (e . g . c o n s e n t o f 3 r d p a r t y r e q u i r e d f o r
                                cession of lease)
                             e) Options or pre-emptive rights
                             f) Other


       Check authority to enter into the leases:

                             a) If a company leasing:
                                                                                    −     Check Articles of company
                                                                                    −     Inspect resolutions to enter into lease
                                                                                    −     Has signatory been authorized
                                                                                          (r e s o l u t i o n ) t o si g n
                             b ) I f a p a r t n e r s h i p o r fi r m :
                                                                                    −have all partners given authority to
                                                                                     enter into the lease
                                                                                − have all partners signed resolution
                                                                                     e m p o we r i ng si g n a t o r y t o si g n l e a s e
                             c ) I f a n i n d i v i d u a l – c h e c k wh e t h e r m a r r i e d w o m a n (i n c o m m u n i t y o f
                                 property), minor or prodigal. Must then be assisted by a relevant
                                 person.


       Dealing through reputable brokers like Guy de la Porte Investment Properties who
       specialize in tenanted properties, and use state-of-the-art computer software to
       a n a l y s e a n d p r e s e n t i n f o r m a t i o n , wi l l e n s u r e t h e a b o v e i n f o r m a t i o n i s p r o v i d e d i n a n
       e a s y t o u s e r f ri e n d l y f o r m a t .



15.    RENTAL HISTORY

       Gross and net rentals over the past 3 years to evaluate:

                             a)    Trends in expenses
                             b)    W h a t e s c a l a t i o n s t h e r e we r e a n d wh e n a p p l i e d
                             c)    Trends in net rentals
                             d)    Likelihood of tenants asking for rent reductions




                                             Guy de la Porte                    Tel: 083-400-2121

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16.    EXPENSE ANALYSIS

       O n e n e e d s t o a s c e r t a i n wh a t t h e r e a l i s t i c e x p e n s e s a r e f o r t h e f i r s t y e a r o f o w n e r s h i p a s
       w e l l a s u n d e r s t a n d wh a t t h e y wi l l b e f o r t h e f o r e s e e a b l e f u t u r e . A l s o , wh o p a y s f o r
       each expense and are they recoverable from the tenants in terms of their leases.

       E x p e n s e s f o r a p r o p e r t y wi l l v a r y f r o m p r o p e r t y t o p r o p e r t y . A l i s t o f e x p e n s e s wi l l
       include:

            Rates
            R e f u s e a n d wa s t e r e m o v a l
            S e we r a g e
            Water
            Insurance
            R e p a i r s & M ai n t e n a n c e
            Management
            E l e c t r i ci t y
            Meter Reading
            Local Council levies
            Improvement District levies
            Air-conditioning maintenance
            Cleaning – inside and out
            Lifts and Escalators
            Gardens and Landscaping – inside and out
            H y g i e ni c s e r v i c e s
            Mechanical equipment
            Pest control
            Facility management
            Electrical service contracts
            Consumables
            S a l a r i e s a n d wa g e s
            Security
            Accounting and Auditing
            Marketing, merchants association/ promotion funds
            Tenant Installation costs
            Letting Commissions

       A n y c o n t r a c t s wi t h s e r v i c e p r o v i d e r s f o r a n y o f t h e a b o v e e x p e n s e s ? . I f s o , h o w m u c h
       a n d f o r wh a t p e r i o d ? .

       A n y r e c ov e r i e s o f t h e s e e x p e n s e s i n t e r m s o f o c c u p i e r s ’ l e a s e s m u s t b e r e c o g n i z e d a s
       income – preferably to be included in gross rentals collected from tenants.



17.    NETT RENTAL PROJECTIONS

       Obtain projections from vendor of gross and net rental projections for coming year to
       c o m p a r e w i t h t h e P UR C H A S E R e s t i m a t e s o f n e t t r e n t a l a n d t o s e e p r o j e c t e d c h a n g e i n
       expenses.



18.    IF LEASEBACK OR COMPANY PURCHASE

       It is generally advised against purchasing the entity that holds a property.


                                             Guy de la Porte                   Tel: 083-400-2121

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       Obtain sufficient information to form an educated opinion of the financial health and
       prospects.

       18.1    F i n a n c i a l e v a l u a t i o n (a u d i t e d s t a t e m e n t s )

                          −     Gross and net income trends and prospects
                          −     What management/ directors feel of the next 2 years trading?
                          −     Capital structure and trends
                          −     Tax liability: past and future
                          −     Financial health: historical and future


       18.2    Memorandum and Articles of Association

                          C h e c k t h a t a l l t h e b o o k s r e q ui r e d b y t h e C o m p a n i e s A c t a r e i n o r d e r ,
                          signed, up-to-date, audited etc.



19.    FOR SECTIONAL TITLE PURCHASES


       Details of section scheme

       19.1    C h e c k o n t h e s o l v e n c y o f t h e s c h e m e b y s t u d y i n g t h e f i n a n ci a l s o f t h e B o d y
               Corporate
       19.2    C h e c k wi t h t h e m a n a g i n g a g e n t s w h e t h e r t h e r e a r e a n y s p e c i a l l e v i e s p e n d i n g
               s u c h a s f o r r e p a i r s t o l i f t s , p a i n t i n g o r wa t e r p r o o f i n g t h e b u i l d i n g a n d r o o f r e p a i r s
               etc.
       19.3    C h e c k wh e t h e r t h e r e i s a r e a l r i g h t t o e x t e n d t h e s c h e m e i n e x i s t e n c e a n d
               w h e t h e r t h e e x e r ci s e o f t h a t r i g h t wo u l d a d v e r s e l y i m p a c t o n t h e f l a t / a p a r t m e n t
               you intend to purchase
       19.4    C h e c k o n t h e r u l e s g o v e r n i n g t h e s c h e m e a n d f a m i l i a r i z e y o u r s e l f wi t h t h e m . F o r
               e x a m p l e i t s h o u l d b e n o t e d wh e t h e r p e t s o r n o i s y / d i r t y i n d u s t r i e s a r e a l l o we d .
       19.5    C h e c k o n t h e m o n t h l y l e v i e s p a y a b l e f o r t h e u n i t y o u wi s h t o p u r c h a s e a n d f o r
               any exclusive use areas such as parking bays or gardens etc.
       19.6    P u r c h a s e p a r k i n g b a y s a n d i n p a r t i c u l a r l o c k u p / c o v e r e d p a r ki n g o r g a r a g e s . I f
               p o s s i b l e , a s t h e p r o v i si o n o f s u f f i c i e n t s e c u r e a n d s a f e p a r k i n g f o r t h e o c c u p a n t s
               of the property being purchased to let is very important
       19.7    C h e c k o n t h e p h y s i c a l c o n d i ti o n o f n o t o n l y t h e p r e m i s e s y o u wi s h t o p u r c h a s e
               but also of the common property such as the roofs, lifts and exterior of the
               buildings etc. If necessary get expert opinion. Request that the seller provide a
               w a r r a n t y t h a t h e / s h e i s n o t a wa r e o f a n y l a t e n t (h i d d e n ) d e f e c t s i n t h e p r o p e r t y
               which have not been disclosed
       19.8    Remember that while the Body Corporate is responsible for the repair of the
               c o m m o n p r o p e r t y s u c h a s t h e r o o f a n d th e e x t e r i o r o f t h e b u i l d i n g s e t c a n d t h a t
               y o u p e r s o n a l l y wi l l n o t b e c a l l e d u p o n t o c a r r y o u t a n y s u c h r e p a i rs , y o u wi l l
               have less control over expenditure on repairs and maintenance, than you would
               h a v e wi t h c o n v e n t i o n a l p r o p e r t y




                                           Guy de la Porte                     Tel: 083-400-2121

  SUBSRIBE for further tips on commercial property investing and advance notice of property opportunities

                                   www.guydelaporte.co.za/company/subscribe/

                                              Copyright : Guy de la Porte
20.      STRUCTURE OF TRANSACTION

         A t t h i s p oi n t o n e s h o u l d , i f n o t a l r e a d y d o n e s o , s t a r t t h i n k i n g a b o u t t h e s t r u c t u r e o f t h e
         transaction.
         Depending on the size and nature of the deal, it is advisable to consult one’s
         accountant and attorney to make sure all aspects one has considered are taken into
         account.


The above information is extensive and may take some effort in accumulating. In order to
a c h i e v e t h e b e s t r e s u l t f o r y o u r p r o p e r t y , we e n c o u r a g e y o u t o b e a s c o m p r e h e n s i v e a s
possible.




Whilst every effort has been made to ensure the accuracy of the information contained herein, no
liability can be accepted for any errors or omissions and Purchasers and Sellers are encouraged to
verify facts prior to any transaction. These particulars are for information only and do not, in any
circumstances, form part of any contract, either express or implied.     Guy de la Porte Investment
Properties CC can in no way be held responsible for the interpretation or usage of the information
detailed herein.



                                               Guy de la Porte                   Tel: 083-400-2121

   SUBSRIBE for further tips on commercial property investing and advance notice of property opportunities

                                       www.guydelaporte.co.za/company/subscribe/

                                                  Copyright : Guy de la Porte

								
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