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BE HONEST AND UPFRONT ABOUT HOME DEFECTS
Disclosing faults in a property at the start of negotiations minimises the chance of a sale falling through. PICTURE: JON TYSON/UNSPLASH THE BEST way for a seller to fulfil their legal obligation to disclose any property defects without negatively influencing a sale is to be open and honest with buyers from the start, says Roger Lotz, franchisee for Rawson Properties Helderberg Group. “Documents relating to every property sale must include a disclosure document that lists any defects the current owner may be aware of.
“That document should include everything from structural defects to plumbing and electrical issues, to noisy neighbours and that stain on the carpet you hide with your couch.” Most estate agents have a standard disclosure questionnaire that they’ll run through with sellers at some point during the listing process. However, Lotz says, these are sometimes held back from buyers until an offer is accepted.
“Waiting until an offer has been accepted before disclosing any defects to the buyer defeats the purpose, in my opinion. “The entire point of disclosure is to ensure buyers are fully informed before making their offer. “This minimises the likelihood of the sale falling through, avoids disputes during the transfer process and prevents potentially expensive litigation down the line.”
How to know when to accept an offer
Remote working behind buying trend Low interest rates continue to fuel home ownership. PICTURE: PAUL BRENNAN/PIXABAY
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IDDLE-AGED home buyers are taking advantage of current low interest rates to purchase upgraded properties with improved amenities. Some are looking beyond the major urban areas for homes with integrated living and working spaces more geared towards the new remote-working reality, says Marcél du Toit, chief executive of Leadhome Properties. Despite the prevailing economic climate, he says the property market is “surprisingly” showing resilience.
“Pent-up demand seen earlier this year has held and, while market appetite slowed slightly during the recent lockdown, it is anticipated to revive and escalate towards the end of this year.” Kyle Rigney, bond adviser at bond originator Bondspark, says the sustained low interest rate will keep homeownership on the radar for South Africans who wouldn’t otherwise be able to buy property. “It also means that consumers who have bought properties in the past 18 months will continue to be able to afford their bond repayments.”
GET COVER BEFORE YOU RENT OUT
Sellers should go for the highest offer but they need to check that there are no conditions attached. PICTURE: RODNAE PRODUCTIONS/PEXELS
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IRST-TIME sellers taking advantage of low interest rates to buy bigger and better homes should know what to expect – and what offers to accept, says Samuel Seeff, chairperson of the Seeff Property Group. HE ADVISES: • Appoint an experienced local agent on a sole mandate so that you deal with only one agent who can provide the best advice for the current market. • If an offer is within an acceptable range of 5% to 10% below the asking price, with minimal conditions, consider it seriously. There is no guarantee of a higher offer.
• If there is more than one offer, the highest price is usually the one you want to go for but be aware of any conditions attached. • A cash offer with no conditions is always first prize. • A conditional offer should include a “72-hour clause” to enable you to continue marketing the property until the conditions are fulfilled. • If you get a direct offer from a buyer or another agent, you must follow the conditions of the mandate. You cannot accept offers which are not provided via your appointed agent as you risk being liable for a double commission claim.
Talk to your insurers prior to letting your property – even if it’s only a room. PICTURE: OUTSITE CO/UNSPLASH
OWNERS looking to rent out any part of their home should ensure they will be covered for the additional risks, says Wynand van Vuuren, King Price Insurance’s client experience partner. Opening your property to paying guests can expose you to a range of risks and liabilities, which you may not even have thought about, and often aren’t covered by standard homeowners’ insurance policies.
“It’s becoming increasingly common to see people sharing spaces and letting rooms to save on living costs. And with the holiday season coming up, many let their homes or flats on platforms like Airbnb to generate income. But they need to think about the effects this will have on their insurance.” The risks, he says, include: • Loss of, or damage to, the homeowners’ belongings. • Loss of, or damage to, the
belongings of guests. • Third-party liability if paying guests are injured on your property. • Damage caused to the buildings themselves by tenants. Even if you are only letting a room, you need to let your insurer know, as there might be conditions on your cover. For example, many insurers will exclude cover for communes and boarding houses, as the risk is too great.
