Mar E Sol House 10 - For Sale

Mar E Sol Ponta Do Ouro House #10.

Once you have bathed in the warm waters of Ponta Do Ouro, you will always return! Remember Mozambique is a third world country, so please adjust your expectations accordingly.

Kitchen:
Standard fridge & freezer, stove & oven; all the utensils you will need cutlery & crockery for 8 people.

The Deck
An awesome view overlooking Ponta do Ouro Bay. With a Gas braai.

Lounge:
TV is available, BUT no DSTV in the unit.  Seating for 8 people.

Bedrooms
Four air-conditioned bedrooms can sleep 8 people.
Room 1: Double  Size Bed
Room 2: Double Size Bed
Room 3: Bunked Bed
Room 4: Bunked Bed

Bathrooms:
3 Bathrooms in the unit. One bathroom is ensuite with a bath toilet and basin.  Two shared bathrooms with each a shower, toilet and basin. The house makes use of a septic tank system. Do not flush foreign objects. Do not use ammonia containing detergents (e.g. Handy Andy).“Pro Bac” cleaning chemicals are septic tank friendly and will be supplied.

No open fires allowed.

The house is serviced once a day. The complex has private secure access to the beach via a main walkway from house to bottom beach gate, with 24 Hour security. An on-site laundry service is available at an additional cost.

Mar E Sol is equipped with a wash bay and enough space should you wish to bring a boat.

Fully Furnished and for Sale at R 2.45 Million.

Monthly Levies are charged.

Question:
What exactly is SSI (Sunset Shore Investments (Pty) Ltd) selling?

Answer:
Through its principle Micawber 521 (Pty) Ltd shares are being sold in SSI. This shareholding equates to the rights to
build a Timber Frame Log Home on the improvements and land owned by SSI in Ponta D’ Ouro, southern
Mozambique.

Question:
What rights does SSI hold and how safe is it to invest?

Answer:
SSI has obtained Definitive Title for the use and exploration of the land to develop a 66 unit Residential/Holiday Home
complex. The Mozambique State has granted SSI perpetual Land Right usage. Through the largest legal firm in
Mozambique KPMG Sarl, SSI has spent considerable time and cost ensuring that all possible authorizations, rights
and approvals pertaining to the proposed project have been obtained.

Question:
Does SSI have a 99 year lease?

Answer:
No, SSI does not have a 99 year Lease on either the rights of land use or for the development of the 66 house complex.
Rather than a 99 lease and more beneficially, SSI has Title on the land, as the project is registered as a Residential
Complex rather than that of a commercial Tourism Lodge. The benefits in this respect are that with this title
shareholders in SSI have a perpetual investment that may be sold at any stage, transferred or ceded to family or
utilized indefinitely for oneself or rented out to earn a return on the investment. With the Improvements on the land the
shareholders of SSI would therefore own a Perpetual Title for the use and enjoyment thereof as dictated by the
construction approval granted by the Mozambique State.

Question:
How can the “rights & title” be verified?

Answer:
All documentation pertaining to the rights, authorizations and approvals by the Mozambique State relating to Land Rights
and Project Authorization are available for scrutiny from the offices of KPMG in Maputo. In addition to a summary
in English by KPMG of the rights held by SSI, certain translated documentation pertaining to Title and Project
Licenses are available from SSI in Johannesburg. Deneys Reitz/Norton Rose Attorneys in Johannesburg one of South
Africa’s largest legal firms can be contacted for confirmation on the structure and system implemented for proposed
buyers in obtaining shareholding in SSI. Additionally and of great importance is that SSI has SA Reserve and
Mozambican Central Bank Approval for the Project.

Question:
Can the Mozambican Government confiscate the land?

Answer:
According to Mozambique law, the State cannot confiscate land that has approved Improvements thereon.

Question:
Why can individuals not obtain Title on the Improvements they make on the land?

Answer:
The company SSI has obtained authorization for Land Right use and for the completion ofthe proposed project. The
land has not been sub-divided into individual plots but rather is 6.875 hectares of open ground zoned for residential
use. Therefore, once a proposed buyer purchases shares in SSI and builds a Timber home in the allocated area on
the property, the house is then registered in Maputo with the authorities as an additional Immovable Improvement
on the land that SSI has rights to. KPMG has confirmed that the Homeowner/Shareholders may at a later stage apply
for the sub-division of the land into individual plots and once authorized, owners may then obtain title to the individual
plots. Additionally and of great benefit is that Home Owners can apply in their own name for a “Certidao Predial”
Title on the Improvement (House) built.

Question:
Why are the Land Rights held by a SA company and not that of a Mozambican company?

Answer:
KPMG Mozambique has recommended that a South African company should hold title to the improvements and
land rights in Mozambique due to the fact that Mozambique, South Africa and Swaziland have a Tri-Lateral
Agreement that offers investors certain guarantees and conditions that protect their investment into the country.
KPMG further stipulates that as a South African company legally investing into Mozambique there is more recourse
if the need arises than say a Mozambican company with the same rights.

Question:
What would happen if SSI is liquidated or becomes insolvent?

Answer:
SSI is not a commercial entity and it does not trade. SSI is debt free, is not encumbered in any way, is not bonded
and has no financial obligations. SSI will merely sell its shares which are associated with Land Rights and building rights
in Mozambique. Micawber 521 (Pty) Ltd owns 100% share hold in SSI. Micawber will be selling off shares in SSI to
prospective buyers and Micawber who as the Developer of the Mar e Sol Complex, will be “hired” by shareholders
to build Timber Frame Log Homes on allocated sites on the property which SSI has Land Rights on. Micawber
therefore will be the commercial entity which will trade and the shareholders of SSI will not be involved in any way
with that entity.

9.
Question:
Once all shares are sold and all the units built, will SSI and the Complex be left to fend for itself?

Answer:
Absolutely not, as a sure sign of confidence in the project all 4 shareholders of Micawber will retain shares in SSI and
will in fact be building their own houses on the property. Additionally, one of the shareholders will be a Director of
the local Mozambican company Por Do Sol Investimentos Lda which has been hired as the Management Company
for the Mar e Sol complex. Additionally all Share Holders in SSI will automatically own all the Project and Land
Rights in Moz through their quotas.

Question:
Can the purchase of the shares and construction of the house be financed?

Answer:
South African Financial Institutions will not readily finance housing in foreign countries. Mozambican Financial
Institutions will only finance a development once it is already built. In other words a buyer would have to fund and
build the house and then it could be financed by a Mozambican Bank. The Share Certificate in SSI would then have
to be re- issued to the Mozambican Bank by the original buyer until the mortgage is paid off in full(we are presently
busy negotiating with Moz Banks). Alternatively additional funds could be obtained from a second mortgage from a SA
Bank or by forming a consortium of investorsthrough friends, family, colleagues etc. Another beneficial alternative
is that Home Owners can pay SISA Tax and apply for a “Certidao Predial” Title on the constructed House which
then enable finance and or loans to be obtained from Mozambican Financial Institutions.

Question:
What sort of security is available and will the complex be managed?

Answer:
Por Do Sol Investimentos Lda has been hired to manage the complex on behalf of the Homeowners. A monthly
levy will be charged which will cover operating costs such as a maid service, maintenance of complex infrastructure,
electrical supply to center, 24 hour patrolling security, refuse removal, a full time on-site manager etc.

Question:
Will there be a Rental Pool for houses to be let out?

Answer:
Yes, Por Do Sol and its subsidiary in South Africa, African Safaris cc will be managing the rental of the houses on
behalf of the Homeowners if they so desire. ADS Travel & Tours (Pty) Ltd has 25years’ experience in renting out
holiday accommodation in South Africa and Mozambique in particular. Rentals have been pre-determined and
schedules drafted according to peak, high and low season occupancy in the area. Funds received from rentals will
not be paid into a rental pool but directly into the Homeowners account. Houses will be cleaned and prepared on
site by the Management Company.

Question:
Would I be able to re-sell my unit at a later stage?

Answer:
As the Homeowners houses are linked to a share hold in SSI, the shares held would initially have to be sold, a new
share certificate issued and as part of the share transfer, the Improvement on the property (owner’s house) would be
transferred as well. With its massive data base and links to numerous agents, African Safaris through Por Do Sol
Investimentos, will offer owners a home re-sale service.

Question:
What am I allowed to build and can I add on at a later stage?

Answer:
All the units within the Mar e Sol Residential/Holiday Home Complex have been standardized to include a 145m2,
4 bedroom Timber Frame Log Home. After construction and inspection by the authorities, Homeowners have the
opportunity of adding on additional decks or rooms under the house, outside shower, swimming pool and a host of
extras. Micawber, the Developer will assist owners with the drawing up of upgrade plans, application to the
Authorities for approval, transport to site and construction and the actual construction.

Question:
How are the shares purchased and my house built?

Answer:
Prospective Buyers will enter into a Promissory Agreement with Micawber 521 (Pty) Ltd.Thereafter a Share Sale
Contract, Use & Services Agreement, Articles of Association, Article Rules, Construction Agreement & Rental Pool
Rule Agreements will be sent to the prospective buyer. A deposit of 50% will be placed in trust with the buyer’s
attorney. Upon signature of the Promissory Agreement the deposit is released to Micawber and construction begins.
Drawdowns are made according to a Progress Payment schedule and monitored via a milestone development chart
and site photographs sent to the buyer by the Project Manager.

Question:
Is there VAT payable on the sale?

Answer:
According to a written opinion from Advocate PA Solomon SC, the top Legal Tax counsel in SA who was consulted
by Deneys Reitz Attorneys on behalf of the Developers, “the sale of shares in the company will not give rise to a
liability for VAT”.

Question:
Will my unit have a view of the ocean?

Answer:
Whilst we cannot guarantee the same view for each unit, there certainly will be sea views from each house. The
ground has been surveyed and the houses will be sited according to the contour elevation depicted on the site plan.
From the site plan you will note that all houses are placed at varying angles in order to ensure that the views are obstructed
as little as possible.

Question:
What is excluded in the purchase price?

Answer:
Excluded in the purchase price are force majeure insurance, furniture and personal fittings, annual state property tax,
monthly service levies, house electrical consumption and legal fees.

Question:
Will there be a Homeowners Body Corporate?

Answer:
Yes, a Body Corporate has been formed, Por Do Sol Investimentos Lda, the Management Company will report
directly to the Body Corporate and SSI Directors.

.
Question:
Will there be any restrictions with regard to visitors and will the complex have rules?

Answer:
The general rules pertaining to the operation of the complex, its Homeowners, visitors, tenants and the like are
reflected in the “Use & Services” Agreement & Rules. In order to ensure that the complex is operated efficiently
and that Homeowners privacy and security is respected, it is essential to ensure that the rules are enforced.

The 2024 monthly Levies are currently R5 290.21 per month, which covers:

 

Staff wages (Security, Security Staff Overtime, complex maids, complex maintenance, and onsite Management),

SA management,

Moz and SA accountants, Insurance, Labor Tax and INSS,

Workman’s Accident Insurance and Staff Health cards,

Annual SA/Moz Audited Financial Statements,

Provisional Tax, CIPC & Body Corporate Financial,

Complex Electrical,

Complex Maintenance,

Refuse Removal,

Staff Uniforms, Security & Staff Sundries (Office and Security),

Complex Management Communication,

Land Tax Payments,

Contingency Fee,

Staff Bonus,

Bank Charges, FOREX Bank Charges,

Border Duties And Clearing Agent Fee.