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Idiots Guide to EORR

John Goldstone, the author, is the Regional Sales manager for ABSA Home Loans in Kwa-Zulu Natal. This booklet is intended to be a practical guide for developers, attorneys, estate agents and purchasers involved in the process. In addressing the lack of knowledge about EORR it is hoped that its use and the use of proper controls, procedures and documents will be promoted.
What then is the basic difference between an EORR development and other schemes?

  • In a sectional title/phased development, the developer completes the units before opening a sectional title register and disposing of the units.
  • With EORR the developer opens the sectional title register before completing the development and disposes of the EORR (land) subject to the end user entering into a building contract - (plot and build).
All the parties benefit, the developer's risk for example is reduced because a smaller loan amount is needed and interest rate increases are not as onerous over a shorter period. The purchaser of the unit enjoys cheaper initial transfer costs and has more input in the unit to be built.
The bank benefits from having a reduced loan amount spread over a shorter period converted to long term users. Activity by speculators will also be reduced.

Browne Brodie Solictors contributed towards the publication of this booklet and Durban Child Welfare are the chosen beneficiaries. It costs R25 and it can be ordered from Zanele Ntuli at 031 3669416 or e-mail John Goldstone.

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