VOLUNTARY PROPERTY
PURCHASE PROGRAM

Description of Program Benefits available to Property Owners and Tenants

For the purpose of the Program there are three (3) Property Owner categories and a Tenant category. The table below is a list of the potential Program Benefits you may qualify for and receive if you are an eligible Owner Occupant, Rental Property Owner, Unimproved Property Owner, or Tenant. A detailed description of the Program Benefits is provided below.

Note: It is recommended that you obtain advice from a tax professional because the Purchase Price and all payments of allowances and bonuses will be reported to the Internal Revenue Service on Form 1099.

Program Benefit Owner Occupant Rental Property Owner Unimproved Property Owner Tenant
Minimum Appraised
Price
$100,000 $75,000 $5,000 N/A
Premium Payment over
Average Appraised Price
60% 50% 40% N/A
Early Sign-Up Bonus $1,000 $1,000 $1,000 $1,000
Miscellaneous Expense
Allowance
$8,000 N/A N/A $4,000
Rent Disruption
Allowance
$1,0001 $1,000 N/A N/A
Professional Advice
Allowance
$500 $500 $500 $500
Closing Cost Assistance
Allowance (maximum)
$5,000 N/A N/A $5,000
Curative Title Work
Allowance (maximum)
$5,000 $5,000 $5,000 N/A
Clear Site Bonus
(maximum)
$15,000 $15,000 $15,000 N/A
Advances Equity N/A N/A Benefits
Home Finding Assistance Eligible Eligible Eligible Eligible
Normal Seller
Closing Cost2
Paid by Sasol Paid by Sasol Paid by Sasol N/A
  1. Available to an Owner Occupant who also owns and leases an Improved Property to a Tenant.
  2. The Program pays for Normal Seller Closing Costs on the sale of your Property. However, mortgages, real estate broker commissions, pro-rated real estate taxes, liens, and judgments and costs related to same are not covered under the Program and must be paid by the Property Owner(s).

Property Purchase Price
The Purchase Price offered for a Property will be determined by the higher of the Average Appraised Price or the Minimum Appraised Price plus the Premium Payment.

Minimum Appraised Price
A Minimum Appraised Price has been established for the Program, the amount of which will depend on whether you qualify as an Owner Occupant, Rental Property Owner or Unimproved Property Owner as described in the table
on page 16. Therefore if the Average Appraised Price of your Property is below the Minimum Appraised Price, the Purchase Price for your Property will be determined using the Minimum Appraised Price.

Premium Payment
The Premium Payment is available to Property Owners for Properties in the Program Area and is intended to assist you in purchasing property outside of the Program Area. It forms part of the Offer for your Property and will be paid at Closing and is calculated as a percentage of the Average Appraised Price. The amount of such Premium Payment will depend on whether you qualify as an Owner Occupant, Rental Property Owner or Unimproved Property Owner as described in the table on page 16.

Early Sign-Up Bonus
If a Property Owner completes and submits an Appraisal Request and Authorization Form or a Tenant completes and submits a Renters Benefits Request Form on, or before October 4, 2013 such Property Owner or Tenant will qualify for an Early Sign-Up Bonus of $1,000 that is payable at Closing. The Early Sign-Up Bonus is available only once to a Property Owner, regardless of the number of Properties he/ she may own, provided further that where a Property is owned by multiple Property Owners, the Early Sign-Up Bonus will be made once to the Property Owner(s) who made the Appraisal Request for such Property.

Miscellaneous Expense Allowance
A Miscellaneous Expense Allowance is payable to an Owner Occupant ($8,000) and Tenant ($4,000) at Closing once all conditions to Closing have been fulfilled to the satisfaction of Sasol. The Miscellaneous Expense Allowance is intended to cover moving and personal relocation expenses for Owner Occupants and Tenants. In cases of multiple Property Owners, this payment will be made once to the Property Owner(s) who occupies the Property.

Rent Disruption Allowance
A Rent Disruption Allowance of $1,000 is payable to you per Property if you are an Owner Occupant or Rental Property Owner and you own and lease an Improved Property to a Tenant. A Rental Property Owner will not be entitled to this Rent Disruption Allowance if an Improved Property is vacant as of July 12, 2013. The Rent Disruption Allowance will be payable to an Owner Occupant or Rental Property Owner at Closing, provided that all Tenants have fully vacated the Property and such Property is “Broom Clean” and in a “Neat and Safe Condition” at that date. An authorized representative of Sasol or CIC will inspect the Property prior to Closing to ensure that these requirements have been met.

Professional Advice Allowance
A Professional Advice Allowance of $500 will be paid to every Property Owner (defined as “a person or persons owning and holding good title to a Property as of July 12, 2013”) at the time of the Sasol Offer. A similar amount will be payable to a Tenant (defined as “a person or persons named as (a) tenant(s) in a lease that actively and consistently rent(s) and reside(s) in a Rental Property and for whom the said residence is his/her or their primary residence as of July 12, 2013 and does not include any persons or family members occupying the Property who are not named as a Tenant in the lease”) at the time when his/ her other benefits are paid at Closing. The Professional Advice Allowance is only available once to a Property Owner, as defined, regardless of the number of Properties owned. The Professional Advice Allowance is intended to assist a Property Owner and Tenant in the payment of any costs incurred for any legal, financial, and/or tax advice and assistance they may obtain in reviewing the Purchase and Sale Agreement and any other questions regarding the Program. If you are a Property Owner, the Professional Advice Allowance is yours to keep regardless of your decision to participate any further in the Program.

Closing Cost Assistance Allowance
If you are an Owner Occupant or Tenant and are in the process of purchasing a new residence outside the Program Area, and a fully executed Purchase and Sale Agreement with Sasol is in place, please meet with a CIC representative regarding your eligibility for a Closing Cost Assistance Allowance. The CIC representative will need to have the documents listed below to establish your eligibility:

  • a fully executed Purchase and Sale Agreement between Sasol and all of the Property Owners in title to your Property; and
  • a title report indicating that the Property Owner(s) has insurable title acceptable to Sasol; and
  • a copy of the fully executed purchase and sale agreement for your new home that is outside of the Program Area;
  • and a preliminary closing statement from your closing agent that indicates the closing cost you have to pay at closing.

If you qualify for a Closing Cost Assistance Allowance, Sasol will pay up to $5,000 in total, per Owner Occupant or Tenant, toward the normal and customary buyer closing costs for your new home outside of the Program Area such as an appraisal, survey, mortgage loan origination fee and/or discount points, home inspection report, recording fees, transfer tax, closing fee, lender and owner title insurance policies, and home warranty plan. Pre-paid items such as pro-rated taxes and assessments, loan interest, escrow account deposits, and hazard insurance premiums are not considered normal and customary buyer closing costs under the Program.

If you qualify, the Closing Cost Assistance Allowance will be paid directly to the closing agent for your new home on the closing date of the purchase of your new home, so long as the closing is within ninety (90) days of vacating the Property by the Owner Occupant or Tenant.

Note: Please advise your closing agent that it may take up to seven (7) business days from the time CIC receives the preliminary closing statement from your closing agent to process and wire the Closing Cost Allowance to such closing agent.

Curative Title Work Allowance
An allowance of up to $5,000 is available to cover legal costs associated with curing title problems. This allowance does not cover liens, judgments, mortgages, or delinquent taxes. A CIC representative will advise you about qualifying for this allowance after he/ she has received and reviewed the title report for your Property that was prepared by the law firm(s) as approved by Sasol. The Curative Title Work Allowance will be paid directly to a law firm approved by Sasol. The list of approved law firms is available on request from CIC.

Clear Site Bonus
Property Owners may be eligible for a Clear Site Bonus of up to $15,000 depending on the nature of the Property and number of structures that need to be removed. To be eligible for this bonus, the Property must be in a “Neat and Safe Condition” and all structures, and all personal property must be removed from the Property (not buried on the land) before Closing. Below ground swimming pools must be filled with clean soil or sand, which will be provided by Sasol. All well equipment must be removed as well. A Sasol representative will determine the exact procedures for clearing the site, and the amount of eligible Clear Site Bonus after inspecting your Property and/or reviewing the appraisals. The requirements for the Clear Site Bonus will be included in the Purchase and Sale Agreement provided by Sasol.

Obtaining an Equity or Benefits Advance
Equity Advance: The Program may provide assistance to an Owner Occupant in obtaining an Equity Advance of up to 90% of the equity in the Property based on all eligible payments, allowances, and bonuses due to such Owner Occupant at the time of the request for an Equity Advance if such funds are needed to:

  • make a deposit on another property outside of the Program Area;
  • close a sale on a new property outside the Program Area;
  • pay moving expenses or other related costs; and
  • clear the site of all improvements and structures.

A CIC representative will assist such Owner Occupant in obtaining an Equity Advance in such circumstances. The amount of the Equity Advance will be deducted from the final payment of the outstanding Purchase Price upon Closing.

To obtain an Equity Advance, all Owner Occupants of a Property must have accepted the Offer, by signing the Purchase and Sale Agreement, have demonstrated that they can transfer insurable title to their property, sign an Equity Advance addendum to the Purchase and Sale Agreement covering the amount of the Equity Advance, and be willing to sign a release form, whereby you agree to release Sasol from any and all past or present property claims against Sasol.

Benefits Advance: The Program may provide assistance to a Tenant in obtaining a Benefits Advance of up to 90% of all eligible payments and allowances due to such Tenant at the time of the request for a Benefits Advance if such funds are needed to:

  • make a security deposit on another leased home outside of the Program Area;
  • close a sale on a new home outside of the Program Area; and
  • pay moving expenses or other related costs.

A CIC representative will assist such Tenant in obtaining a Benefits Advance in such circumstances. The amount of the Benefits Advance will be deducted from the final payment of the outstanding Program Benefits at Closing.

For a Tenant to obtain a Benefits Advance, all Property Owners must have accepted Sasol’s Offer and demonstrated that they can transfer insurable title to their Property.

Home Finding Assistance
If you are a Property Owner who received a Purchase and Sale Agreement to sell your Property to Sasol or you are a Tenant and are considering purchasing a new home outside the Program Area, please contact a CIC representative. The CIC representative can refer you to a local real estate broker that is familiar with the Program for assistance in purchasing property outside of the Program Area.

Normal Seller Closing Costs
The Program pays for costs that are normally payable on property sales, such as costs related to the preparation of deeds, recording fees, transfer tax, title exam, and a closing fee. Mortgages, real estate broker commissions, pro-rated real estates taxes, liens, and judgements are not covered under the Program and must be paid by the Property Owner.

 

Letter from Sasol  |  Introduction  |  Program Area  |  Property Owner  |  Tenants  |  Description of Program Benefits
Program Definitions  |  Clarification Questions and Answers  |  Appraiser Instructions
Sasol Appraisal Request and Authorization Form  |  Sasol Renters Benefits Request Form  |  FAQs

Sasol appointed Community Interaction Consulting, Inc. to administer the Voluntary Property Purchase Program. This Program is entirely voluntary.