Buyer Beware! Best practice tips

Now is the time to buy!

This is the message coming through from the property economists, who advise that with the current prices and lower interest rates, there is no time like the present to enter and enjoy the property market.

Before taking the leap, whether you are a first time property investor or old hand, do obtain expert advice and get a property agent or attorney on your side. Here are some tips to get you started:

1. Be aware of the costs involved in purchasing a property and the timing for payment of the costs. If you are applying for a bond, remember that these funds are only available on registration of the property into your name. So too, if you are selling your property and registering the two simultaneously. You will need to have the transfer duty in cash and available usually about a month before expected registration thus before these funds are available.
2. A seller is obligated to obtain beetle (unless sectional title), electrical, plumbing, gas and electrical fence certification. These certificates are not always as comprehensive as purchasers think they are however. Especially so for the plumbing certificate which relates to the supply of water and does not cover issues such as leaking taps or flushing toilets. Ensure as well that these certificates are valid and in place before registration. They often contain expiry dates.
3. Since the advent of the Consumer Protection Act, many buyers make the mistake of thinking that they will have recourse for any defects or faults with the property even after registration into their name. This is not always the case and there lies with each purchaser the duty to inspect the property thoroughly. Nobody buys a car without test driving it – the same principle applies.
4. Recently the Weekend Argus ran an article regarding the investment of deposits in property transactions –make sure the estate agency or conveyancing attorney invests your funds with the interest accruing to yourself – they will require your written mandate to do so however most professional attorneys will prepare this timeously for you.
5. Check that everything you think is included with the purchase of the property is indeed the case. Include everything in the contract and do not rely on a verbal undertaking or promise – if it is not in the agreement it is almost impossible to prove. If the seller promises to remove some rubble for example–remind him by inserting it in the contract with a date. Don’t see it as an insult to his word but rather a manner in which to make things very clear to all from the very outset.
6. Similarly, insert a clause to ensure that any fixtures or equipment sold with the property are in good working order, for example an irrigation system, kreepy krawly.