DOWNLOAD PDF

Frequently Asked Questions by First-time Homebuyers whose property purchase has been impacted by the lockdown

Question:   My Offer to Purchase specifies that I have to obtain bond approval by a date that falls within the lockdown period.  What happens if I am not able to obtain bond approval as the banks are only able to offer essential services to their customers?  Will I lose the property?

Answer:   You will not lose the property as your bond approval has been delayed by the lockdown imposed by government in response to the national state of emergency.  You must request your estate agent to draw up an Addendum to your Offer to Purchase to extend the Bond Approval suspensive condition by 31 days or to a reasonable date after lockdown has been lifted.  This agreement must be in the form of an Addendum to your original Offer to Purchase and must be in writing and signed by the seller and yourself.

Question:  My bond has been approved but the date of the provision of the guarantee from the bank falls within the lockdown period.  What happens if the bank does not issue the guarantee as the banks are only able to offer essential services to their customers.  Will I lose the property and I will I be liable for damages?

Answer:  You must request your estate agent to draw up an Addendum to your Offer to Purchase to extend the provision of the guarantee to a reasonable date after lockdown has been lifted. This agreement must be in the form of an Addendum to your original Offer to Purchase and must be in writing and signed by the seller and yourself.  Your seller will not be able to claim damages should he/she suffer any damages as result of this delay due to the fact that the lockdown is a government directive in response to the current national state of emergency.

Question:  I agreed to take occupation of my new home prior to transfer and pay occupational rent from a specified date which falls within the lockdown period.  Will I still required to pay this occupational rent even though I cannot take occupation due to the lockdown restrictions?

Answer:  No, you will not be liable to pay occupational rent until you are able to take occupation after the lockdown has been lifted.  Your estate agent will be required to arrange for the seller and yourself to extend the date of occupation to a reasonable date after lockdown has been lifted.  This agreement must be in the form of an Addendum to your original Offer to Purchase and must be in writing and signed by the seller and yourself.

Question:  According to my Offer to Purchase the property has to be transferred and registered in my name by a date that falls within the lockdown period.  The transferring attorney has advised that although my transfer was lodged at the Deeds Office on 24th March, due to the Deeds Office having to close during the lockdown period, the transfer will be delayed.  Will I be in breach of contract and can the seller sue me for damages?

Answer:   The delay in transfer is due to the lockdown imposed by the government in response to the national state of emergency.  You will therefore not be considered to be in breach of contract and neither can the seller sue you for any damages incurred.  Your estate agent will be required to arrange for the seller and yourself to extend the date of transfer to a reasonable date after lockdown has been lifted.  Your transferring   attorney will be able to provide guidance on the estimated date of transfer.   This agreement must be in the form of an Addendum to your original Offer to Purchase and must be in writing and signed by the seller and yourself.

 

Recent Posts
Share This