SEEFF offers valuable advice for buyers and sellers to avoid red tape during the home buying process
Buying a property could be a challenging process and buyers need to be very mindful of every single aspect that could impact on their property at the time of buying and also in future. Getting sidetracked by something like the financing or transfer process of a home is of course very likely, but losing track of important factors like stated below could have negative repercussions if you don’t address them at the necessary time.
Manie Oosthuizen, Seeff’s managing director in Polokwane offers the following tips to keep in mind when buying a home in order to avoid unnecessary pitfalls and red tape.
1. Ask the agent for a CMA of the property. Let the agent explain how the value of the property was determined. The market is very competitive at the moment, and there is a good chance that your offer will compete with someone else’s. The buyer who comes in “too low”, may lose the opportunity to buy the house.
2. Ask the agent for a first option to buy or a right of first refusal. The agent will negotiate this with the seller if you are keen to buy the property, but not yet quite ready to sign an offer to purchase.
3. Establish the cost involved in the purchasing of a property. Not only the purchase price is important, but also the transfer duty, bond cost etc. Find out if there are any hidden costs, such as the replacement of equipment in the property which is not included in the sale. Also determine affordability, for example what the effect of a hike in the interest rate would be. Will you still be able to afford the repayments should the interest rate go up by 2% or 3%?
4. Establish exactly what is included and not included in a sale. If anything has to be removed and replaced by the seller, stipulate that in the sales agreement.
5. Ask the agent about latent defects and patent defects. Has the seller disclosed everything important? Make sure everything is specified in the sales agreement. You don’t want any nasty surprises when you occupy the house.
6. Do a proper inspection of the property. Look for any signs of dampness, cracks and other problems. Establish from the agent if the transaction is covered under the CPA (Consumer Protection Act) or if it is sold “voetstoots”. Obtain a clear understanding of the situation.
7. Are the plans of the property approved, and is there an undertaking by the seller to provide these plans?
8. Establish whether there are any major changes in the area where the property is located on the horizon, for example a change in the road structure or is there the possibility of a commercial development taking place in the immediate surroundings?
9. Do not negotiate anything verbally. If it is not contained in the written agreement of sale, it is not part of the conditions of sale that has been agreed to between both parties.
10. Does the property comply with all legal requirements, and is there an undertaking by the seller to supply confirmation thereof like Gas Certificates, Certificate of Electrical Compliance, Electric Fence Compliance, and others?
