Home Loans Credit - Product Guide Property Sales and Services guide The purpose of this document is to introduce you to the various Products and Services that we offer; as well as provide you with a step by step guide for purchasing these properties. We essentially offer three products namely, 1. Properties in Possession (PIP), 2. Sales in Execution, as well as, 3. Private Properties where our Customers have requested us to assist them in the Marketing and Selling of their property. We would like to draw staff members' attention to the following : Staff may buy Properties in Possession directly from the bank. Staff are not permitted to purchase any Sale in Excecution properties prior to the aution date. (no offers can be made to the bank directly and you are also not allowed to enter into arrangements with the current owners) We can not consider any offers from staff on private properties. Each of these products are briefly explained: 1. Properties in Possession (PIP) A Property in Possession is a property where the Bank, through Legal means, has repossessed and thereby taken ownership of it. The available properties are at this point offered to the public for sale and any offer to purchase a PIP needs to be made directly with the Bank, using our generic Offer to Purchase (Also known as a Sale Agreement or a Deed of Sale) document. 1.1 The Requirements for Purchasing a Property in Possession 1. Proof of Cash if you intend paying Cash for the property. 2. A Standard Bank Offer to Purchase to be filled in. (This is available on request). 3. CK1 Document and Founding Statement if it's a Close Corporation company or Trust purchasing a PIP. 1.2 The Benefits of Purchasing a PIP 1. No Transfer Duty is payable by a Purchaser. Transfer duty is the tax that a Purchaser is obliged to pay to the Receiver of Revenue (SARS) when a property is purchase. (The amount is dependent upon the purchase price). It is important to note that Transfer duty and Transfer costs (Also known as Conveyancing Fees) are two different costs. 1. Transfer Costs are the amount an Attorney will charge you for services rendered to you and 2. Bond Registration Costs is the amount an Attorney will charge you to register the Mortgage Bond in your name On PIP's Transfer (Conveyancing) and Bond costs are payable by the Purchaser/ Buyer. 1.3 Vacant Occupation of the Property The occupation of a property by a Purchaser is subject to the property being vacant and the Purchaser having paid all the relevant Transfer and Bond costs with our Transferring Attorney. The Water and Electricity consumption account also needs to be transferred into their name. The Bank does not guarantee vacant occupation of PIP's though it will assist in securing vacancy. 1.4 Outstanding Rates and Taxes The Bank, up to the date the property is transferred into the Purchaser's name, will pay any outstanding Rates and Taxes on the property in full. 2. Sales in Execution A Sale in Execution is an Auction held by the Sheriff of the Court, it occurs as a result of the Bank having taken Legal steps to recover debt on a Home Loan. The Bank has through a Court Order attached the property, but is not the Owner of the property yet; as a result we cannot accept Offers to Purchase unless the Owner of the property consents and signs it as the Seller. These properties are advertised in the Government Gazette, as well as, in two local newspapers circulating in the district of the property. The Bank also markets these properties to Estate Agents and the general public to get buyers to attend the Sale. 2.1 Purchasing a property at a Sale in Execution You may obtain a list from us at any one of the contact details mentioned below or ask at your local branch or call our Home Loans Customer Contact Centre for further information. The list has the venue, the date and the time of the Sale including the likely value of the property and its features. 2.2 The Required Documents 1. A letter stating the Buyers name, the Buyers identity number and the amount the Buyer intends purchasing the property for, as well as an acknowledge- ment that, if the the Sale is cancelled for whatever reason, the Bank will not be held liable. 2. In this letter we further require an irrevocable undertaking from the Buyer to open their bids at the amount they state they are willing to purchase the property for. 3. A copy of the Buyers identity document. You will then attend an auction at the venue and if you are successful in purchasing the property you will be required to pay the following on the date of sale: You will then attend an auction at the venue and if you are successful in purchasing the property you will be required to pay the following on the date of sale: 2.3 Required Payments at Auction (Sale in Execution) 1. A 10% deposit based on your Purchase Price, either in Cash or by Bank Guaranteed Cheque to the Sheriff. 2. Sheriff's Commission based on the purchase price, it is calculated as follows, payable by Cash or Bank Guaranteed Cheque: a) 6% on the first R30 000 of the Purchase Price b) 3,5% on the Balance of the Purchase Price plus Value Added Tax (VAT) c) Sheriff's Commission is payable at a minimum of R300 (Excluding VAT) and a maximum of R7000 (Excluding VAT) depending on the Purchase price of the property. Although the 10% deposit and Sheriff's Commission is not a requirement of the Bank, one needs to ensure that they make amicable provision for the cost. A Buyer must bear in mind that at the 'fall of the hammer' the Deposit or Sheriff's Commission cannot be paid, the property will again be put up for Sale. 2.4 Conditions of Sale On successfully bidding and buying a property the Condition's of Sale document, which represents the Sale Agreement between the Sheriff and the Buyer, will need to be signed. It is important to read this document because it sets out all that a buyer is liable for, some examples of these liabilities are: 1. The Buyer is liable for all the outstanding Municipal Rates and Taxes on the property. This will need to be paid before the property can be transferred into the buyer's name 2. The Property is sold 'Voetstoets', the Sheriff or the Bank will not be held liable for any deficiency that is found to exist or is in existence. 3. The Buyer is liable to obtain his own vacant occupation of the property. 4. Transfer Duties, Transfer Costs, as well as Bond Registration costs are payable. 3. Private Properties These are properties where the Customer finds himself in a state of financial difficulty and as a result has decided to sell his property, but has requested that the Bank assist in the Marketing and Selling of it. The Bank is solely and exclusively appointed to Market and Sell the Property and we achieve this by appointing reputable Estate Agents to market the properties. Purchasing a property in this manner is the same as if your buying off the Private Market, the selling of the property is neither a forced Sale as in a Sale in Execution, nor is it a Property in Possession. As a result, the prices at which we advertise these properties are always Market related and all relevant Transfer Fees, Duties and Bond Costs are applicable and payable by the Buyer. As mentioned, although the Bank is authorised to market and sell the property, it is not responsible for: 1. The vacancy or the date you wish to take occupation of the property, 2. Any defects (whether patent or latent), and 3. Electrical Compliance or Entomologist Certificates. 3.1 Purchasing Private Properties Once you have obtained the Marketing list, please refer to the column marked "Agent". This will tell you the name and telephone number of the Estate Agent working on that specific property. If there is no Estate Agent details, the contact details of the current Owner are shown. Once you have decided on a property you would like to view, you will need to contact: 3.2 An Estate Agent If an Estate Agent is handling a matter, feel free to contact him/her to enquire on the status of the property. They will arrange the viewing of the property, as well as, provide you with the necessary documentation e.g. the Offer to Purchase. The Estate Agent involved will also attend to the negotiations with the Owner relating to the Occupation Date of the property. 3.3 Owner If no Estate Agent is attending to the matter, we will supply you with the contact details of the Owner on request. Then you need to make an appointment to view the property. However, please note, that you are responsible for arranging the salient details of the Agreement, for instance, the Occupation Date. If you wish to submit an Offer to the Bank, we can supply you with a Private Sale Agreement certified by the Estate Agents' Affairs Board. 3.4 Submitting an Offer to the Bank Once you have signed an Offer to Purchase, you will have to provide us with additional information, namely: 1. Proof of Cash, if you intend purchasing the property cash. The documentation may be sent to us via fax, mail or electronically scanned and e- mailed. For more information on the products and services of Home Loans Credit, contact us on: Email us on firstname.lastname@example.org or visit our webpage www.standardbank.co.za (Home Page - Products and services - Home Loans - Buying my Home - Finding a Property - Properties in Possessions) Alternatively, you may call one of our consultants, who will gladly assist you: Phone us on: 0860 103 869 Fax us on: (011) 227 4512. Yours sincerely Home Loans Credit Credit Marketing Department Standard Bank of South Africa Ltd. No 45 Commissioner Str Johannesburg Gauteng 2001 Email: email@example.com www.standardbank.co.za Special Power of Attorney Marketing List 0860 103 869 1/Aug/11 Fax no : 011 227 4512 Ref no Expiry Date Owners Details Rates Market Value Street Adress Suburb Prov Description Disclaimer This list is produced by the Standard Bank of South Africa Ltd („the Bank”) for information purposes only. The Bank does not warrant that the information on this list is true and correct, nor that properties appearing on this list are still available for sale. All properties are sold “voetstoets” (meaning as is). Please note that these properties are being marketed by the Bank on behalf of the mortgagor, and any prospective purchasers will be required to negotiate vacant occupation, compliance certificates and the like when concluding the sale agreement However the Bank cannot be held liable for any breach of contract occasioned by the registered owner of the property. All users of the information on this list do so at their own risk. The Bank will not be liable for any losses of whatsoever nature incurred, as a direct or indirect result of the use of the information on this list.