The question reads as follows:
The purchase price of a property is R1 000 000.00, but the parties agree that the price be increased to R1 050 000.00 (so as to include transfer and bond registration costs). The seller then initially pays the costs on behalf of the purchaser, but is reimbursed with the R50 000.00 upon registration of the property.
- Defraud the financial institution granting the loan, in that more money is granted than what the property is worth?
- Superficially increase the value of the property to such an extent that properties are OVER-valued when subsequent purchasers want to purchase the same property?
- Does the National Credit Act come into effect in the form of an incidental loan?
Comments and answers would be appreciated.