Seeff Atlantic Seaboard & City Bowl | Sellers Guide

ULTIMATE SELLERS GUIDE

Seeff Atlantic Seaboard & City Bowl

DearReader

Seeffhasbeenanameinrealestatesince1964.ItwasinSeaPoint whereSeefffirstopeneditsdoors.Themanydecadessincehave beenestablishedasatrustedpartofthecommunitywithadeepand ever-growingknowledgeofpropertysales.

2022hasbeenanexcitingyearforourteamsacrossallsuburbs,with somerecord-breakingsalesnumbers,fromtheentry-leveltoluxury markets. Butwhatmakesmetrulyproudisthewayourteamembodiesour values:excellence,passion,integrity,family,challenge,innovation, andperseverance.

Werecognisethatpropertyismorethanjustatransactionthisisyourstory-andwearehonouredtowritethese chapterswithyou.

RossLevin

Licensee

SeeffAtlanticSeaboard&CityBowl

WHAT IS YOUR HOME WORTH AND WHEN TO SELL? 1

While selling a home is a common life event, the decision to take the plunge and sell might not come so easily. Are you sure you’re ready to sell?

Some signs that you’re 100% ready to sell include:

You feel emotionally prepared to leave this home. You’re in a financial position to buy a home that better suits your needs. Your circumstances demand it. You want to realise your investment or redeploy the capital.

HOW MUCH WILL YOUR HOME SELL FOR?

You can do a little honest market research of your own to figure out a ballpark amount for your potential home sale proceeds. It is vital to understand that there is a balance of strategies required between

Speed Convenience Price

START WITH ONLINE WEBSITES

Visit our website atlanticseaboard.seeff.com. This will provide insight into how many houses are currently for sale in your area and whether you’ll face a lot of competition on the market. This will give you a better idea of when to list your home, comparable pricing on homes with similar features, and how to price it, depending on the strategy required.

Ask your real estate agent how many months it would take to sell all the current homes for sale in your area. This data point is calculated by dividing the current total number of homes for sale by the number of homes sold in the last month. Typically a market with less than six months of supply favours sellers, while a market with over six months of supply favours buyers. In a buyer’s market, prices will get more and more competitive; meaning the value of your home could go down. Similarly, in a seller’s market, prices will generally be higher.

CONFIRM “FAIR MARKET VALUE” WITH A CMA

There are various online home valuation estimate websites, but they are just that: estimates. While the accuracy of these tools has certainly improved over the years and is only getting better, you shouldn’t use an estimate to set an asking price for your home without bringing in an expert’s opinion.

Real estate agents are familiar with your local market and will provide you with a comparative market analysis (CMA) for your home as part of their services.

With a CMA, an agent will round up recently sold properties in your area and compare them to your home in order to calculate its fair market value.

A CMA involves analysing raw data such as your home’s square meterage and bedroom count along with the fewer tangibles, such as your property’s proximity to noisy streets, local attractions, views, and suburb status to give you a full pricing picture.

The right price will be essential to ensuring you don’t overprice or underprice your home. A spot-on pricing strategy also makes it likely that your home will sail through the bank appraisal. For unique homes or those without sufficient comparables, another option for sellers — though rare — is to obtain a bank valuation from a professional valuator.

DON’T FORGET TO SUBTRACT SALE COSTS!

The amount of money your home lists for won’t be what you walk away with when all is said and done. Buyers generally put in offers that are less than your asking price. The Atlantic Seaboard & City Bowl average is around 10% less, but this can vary considerably, and in some cases, the selling price can be higher than the listing price. It is important to note that generally the longer a property has been on the market, the greater the % discount buyers offer, as the property is considered problematic or grossly overpriced.

From the actual selling price, subtract fees, taxes, HOA fees if applicable, obtain compliance certificates, your remaining bond, and agent commissions from the sale price to figure out your rough net proceeds.

FIGURE OUT YOUR TIMELINE FOR SELLING

Selling a house takes a lot of attention, so weigh the amount of time and effort you will be able to commit to before you decide to sell your house. Overall, the time it takes to sell a house depends on your situation, your house, your local market, and especially the listing price.

In The Atlantic Seaboard and City Bowl the average correctly priced property sits on the market for 119 days before receiving an offer. From there, it takes an average of 40 days to close on an Offer To Purchase (OTP) including all suspensive conditions (such as confirming bank loan). All in all, you can expect to dedicate 86 days (or three months) to sell your house from start to finish. Thereafter it can take anything for 6 – 15 weeks to transfer in the Deeds office.

SHOULD YOU SELL YOUR HOME BEFORE YOU BUY?

With all things in real estate, it depends. However, in most situations, it’s best to sell your house before buying a new house for one big reason: what if your house doesn’t sell, and you already bought a new house?

If the seller is in a position to qualify to purchase another home before they sell, then that’s an option. If they are not in a position to do that, or maybe it’s out of their comfort level, then they need to get the house on the market first before they move to the next step.

So unless you are comfortable owning multiple homes at once, it’s best to avoid putting yourself in the position of paying two bonds. Here are some ways to make sure you don’t end up owning two homes at the same time.

Use a top real estate agent to successfully market your house and sell it quickly. Top agents sell homes faster than the average Joe, making it easier for you to move onto the next stage of your life.

When buying a house, have your real estate agent write into your buying contract that your offer is subject on the sale of your current house, meaning you will not be able to purchase another home until your current home sells. (This will weaken your offer, but protect you from having to carry two mortgage payments).

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WHAT'S THE BEST WAY TO SELL A HOUSE?

OPTION 1: HIRE A REAL ESTATE AGENT

Yes, selling a house is stressful… but without an agent, it’s a logistical nightmare. Here are just some of a real estate agent’s core duties:

Perform an analysis of the local real estate market to price your home at fair market value. Guide your home preparation efforts (repairs, de-cluttering, staging) so you don’t end up spending more money than you need to.

Use an existing database of buyers searching for properties.

Market your house across an array of social media and real estate platforms.

Motivate, distribute & share your property to all other local agents, accessing their buyers.

Handle all buyers & qualify them.

Provide higher security, privacy and discretion.

Use their existing referral networks and database of buyers already looking to purchase a home just like yours.

Create a trusting environment for the buyer.

Spend their own money, not the sellers, with marketing costs.

Bring in buyers for showings and talk up your house like you never thought possible—they know what buyers love.

Prevent an unrealistic and low offer.

Handle all potential liability issues. Negotiate offers to get you the best price.

Handle tons of confusing paperwork and legislation requirements

The paperwork that accompanies a home sale is detailed and exhaustive and laws and regulations vary from time to time, making it even harder to master unless you’re working in it all day every day. A good real estate agent knows the process like the back of their hand and will make sure you walk away without any legal issues or regrets.

It’s a full-time job. But a good agent working for a reputable agency achieves a quicker & higher sale price with fewer hassles.

CHOOSING THE AGENT: you need to find a best-in-class specialist & honest real estate agent. There are hundreds of licensed real estate agents in the area, working with dozens of different brands, but only a handful are top-performers who can sell your house faster, for more money, professionally, and hassle-free.

OPTION 2: FOR SALE BY OWNER (FSBO)

When you list your home as FSBO (For Sale By Owner), you’re cutting out the real estate agent from the process. That means you alone must take on the responsibilities of the agent to drum up interest around your home (unless you have a buyer lined up already). You’ll have to price your home right, stage and prepare your home to sell, deal with all buyers, show your home and negotiate with them to close the deal. Selling your own home is a lot of work, but like anything, it has its benefits and its drawbacks.

PRO: When you sell your home FSBO, you won’t have to pay an agent’s commission fees. Theoretically, this saves you some money when you sell your home.

CON: Trouble is, you’ll probably end up selling your home for less money. FSBOs typically sell at a significantly lower price than homes listed with a reputable real estate agency. All the work an agent does to prep and market a home isn’t for nothing — it’s to bring in competitive offers. The price you’re able to fetch with a real estate agent’s help could cover the cost of commission… and then some.

PRO: You’re on your own schedule. You can take your time to find the perfect buyer without worrying about the length of your agent contract.

CON: Your emotions may put the sale in jeopardy. There’s a lot wrapped up in your home— how it looks, how it’s furnished, how it’s painted, all of these choices you made over the years add sentimental value to the property and make it harder to be objective. A buyer’s critiques of your home can be brutal and push you over the edge. Real estate agents know how to handle these complaints while highlighting a home’s best features. Plus, a real estate agent is an objective set of eyes to make fast decisions.

PRO: You can list your house for the price you think it deserves. Real estate agents will advise you on the best asking price for your house, but if you think you can get more for it, you have total freedom.

CON: Your home will be harder to sell if it’s overpriced—if it sells at all. Buyers won’t pay thousands of extra Rands because your home of 30 years carries sentimental value. A real estate agent will price your home competitively based on cold, hard logic to bring in attractive offers. Overpricing sounds like a good idea… until you’re forced into price reductions down the line.

89% of home sellers choose to work with a real estate agent to sell their home, which is consistent across all age groups. And, only 8% of home sales are marked as FSBO. At the end of the day, selling your house on your own is not the best option for most people.

It’s hard to deny the benefits of working with a good real estate agent from a reputable agency. Top agencies have massive local networks to spread the word about your listing, market knowledge, expert negotiation skills, and experience selling homes for the highest price.

HOW TO FIND THE BEST REAL ESTATE AGENT

The top real estate agents work with the top real estate brands, for good reason. The brand supplies the best possible background infrastructure, referral systems, databases, up to date legal know-how as legislation changes, and pays all marketing costs directly. This allows the best agents to focus purely on selling their mandated properties. So the best way to start, consider only agents working for the most recognized and reputable brands in the business of selling properties in your area.

It's also important to note, a reputable real estate agency will only hire the best people.

Once you identify possible agents from a reputable real estate agency, set up an interview. Find a professional you mesh with on a personal level and inspires confidence. Then ask questions such as:

How many homes has your brand sold in this area?

Do you work with a team, or will you be representing me on your own?

Do you have a market and inventory analysis for my area?

What is your marketing strategy for my home?

What are the average days on market for my strategy?

Who will be paying the marketing costs?

What makes your brand reputable?

How will you be different from other agencies?

Will you market my property to all agencies?

Once you are satisfied with your agent and agency, then normally a mandate agreement is signed. This is the contract between a seller and a real estate agent that gives the agent the ability to market and sell the home. Here are important things to watch out for in the mandate.

There are different types of mandate agreements: Ensure the agent covers these with you based on their recommendation, however, a seller can insist that any agreement can be terminated within 7 days of written notification if the process is not done as agreed. Make them write this into the agreement to safeguard you. If an agent will not comply, then they are not the correct agent as they should have complete confidence in their marketing, rather than locking a Seller into a time frame.

A LIST PRICE YOU’RE NOT COMFORTABLE WITH

This is the asking price that your real estate agent will list your home for, so make sure you’re comfortable with it. The list price on the mandate agreement isn’t the amount you’ll walk away with, though. The actual sale price might be more if there are multiple offers, or less if the home doesn’t sell right away. And although it’s included in the contract, it’s not set in stone. You and your agent can lower the list price of your home if it doesn’t spark any buyer interest.

HOW MUCH YOUR AGENT WILL CHARGE IN COMMISSION

The normal national real estate agent commission rate is 7.5%, however, it’s negotiable, but good luck trying to find a strong and reputable real estate agent who will agree to less than what is standard for the area. Remember, a real estate agent can turn you away before you sign the mandate agreement.

GET YOUR HOME READY3

Buyers will examine every room, every surface, and every shelf with a magnifying glass, so you need to prepare for their judgment. Every house and real estate market is different, but top agents stand by certain rules of the game for getting your home ready for buyers.

Only make fixes and repairs that matter to buyers

Get every room looking clean, organized and decluttered

Stage the home without spending a fortune

Get the garden trimmed, deweeded and neat, including the pavement in front of the house.

Ensure the pool is at its best.

Take magazine-quality photos for your real estate listings

Consult with your real estate agent so you don’t waste time and money on needless projects.

If you leave must-fix items untouched, they could show up later, be a negative and send buyers running. Anything that is structural in nature or mechanical in nature should be fixed if the seller knows that it’s a defect. If a seller is willing to do repairs on things, it’ll help it get sold faster.

Once you know about any defects, you have to disclose them to buyers in writing.

Buyers need to be able to envision their own belongings in a home… and that’s hard to do with your sports memorabilia and family photos taking up every inch. It’s going to benefit the sale because less stuff in your house is going to make it look bigger and cleaner and neater. Its a big task, but essential.

Another option is to stage, to create a warm and inviting space. This is the art of showing off a space in its best light with the right furniture, decor and accents. The living room and master bedroom are the most important rooms to stage, and with guidance from your real estate agent, staging doesn’t have to cost a fortune. If you’ve properly cleaned and decluttered, you’ve already done much of the required work.

For decorative touches, use items like statement art, mirrors, and unused vases to liven up a sterile space. Remove any bulky, worn La-Z-Boys; couches from your college days; or coffee tables that have taken a beating over the years.

If you have high-quality furniture already in the house, arrange it in a way that creates an open flow from room to room. Make sure that the furniture in the room shows buyers how a space could be used but doesn’t make the area look smaller.

5 QUICK AND EASY DIY PROJECTS TO ATTRACT BUYERS

Add a fresh coat of neutral paint to every room. This is an easy way to give your home’s interior a facelift. Science says a fresh coat of nice, neutral beige will do the trick.

Clean up and refinish floors. Whether they love it or hate it, buyers will always comment on a home’s flooring. Instead of spending thousands of dollars to add new floors, simply do a once-over with a scrubbing mop, refinishing product, or carpet cleaner… or hire a professional to do so.

Spruce up your home’s curb appeal. Did you know that giving your curb appeal a little TLC can boost your property value by up to 12%? First impressions are crucial. Trim up foliage and pull any weeds, clean up debris, pressure wash the exterior/wipe down siding, and add a few curb appeal boosters, like a decorative bench, colourful mailbox, or flower planters

Bring in natural light. Buyers look for homes that are bright, airy, and open. Wash windows on the inside and the outside, Replace old window treatments, and switch out dim light bulbs with brighter ones

Clean the pool. Ensure the water is clear and the bottom is debris free. Bring in a pool cleaning company if necessary.

TAKE HIGH-QUALITY REAL ESTATE PHOTOS FOR THE LISTING.

Professional, high-quality pictures are critical for every room. No matter how fancy your smartphone is, do not use it. Or if an agent/agency uses it, fire them. This job requires a DSLR, tripod, professional photographer, and fancy auxiliary equipment. Your agent should hire one of the best property photographers in the area, as your listing photos are one of the cornerstones of your listing. While the magazine-worthy images draw buyers in, your agent’s creative listing description should highlight your home’s best features, name drop swanky appliances, mention unique architectural details, and tell the story of your home.

Pictures, where your family or your pets are visible, should never be used. Prospective buyers want to visualize themselves in the home and your personal items could make this harder for them to do.

Don’t distort images by taking pictures with fisheye lenses or using black and white or sepia lenses. The objective is not to produce an artistic image – the objective is to create a realistic version of your home in order to sell it!

MARKETING YOUR HOME

Your dedicated agent will launch a comprehensive marketing plan to give your home the widest possible exposure and reach buyers at multiple touch points - in person and on the web. You should count on your agent to:

Upload all property pics and details to online websites

Spread the word on Social Media: Share your listing across social media channels such as Facebook, Instagram, and Pinterest with stunning photos, compelling copy, and strategic hashtags and location tags. Great agencies and agents will spend extra money running ads on Facebook.

Host Virtual Tours: 3-D video tours give buyers a realistic feel for the property with virtual walkthroughs.

Make the Rounds with Other Agents: Network with all agents in the area to bring home hunters looking in your neighbourhood and price point to the table.

Put Out Signs: Stick that oh-so-recognizable for-sale sign in the front yard to capture the attention of passersby.

Host Open Houses: Determine whether your home sale would benefit from an open house. Sell! Sell! Sell! Advertise your home the old-fashioned way across print media, including newspapers, magazines, and local flyers, to reach more buyers.

In summary, you want to hit buyers from every possible angle with a 360-degree marketing approach. You never know who’s going to be the one to make that offer you can’t refuse—the casual online browser clicking through listings on their laptop one evening, or the couple taking a Sunday drive who notice the big sign in your front yard.

VIEWINGS

As much as an exhaustive real estate marketing plan can drum up interest around your home, buyers want to see it in person (with their very own eyes!) before making any kind of commitment. That’s where house showings come in.

Buyers interested in touring your home will ask their agent to book a tour, so you don’t have to manage any communication or scheduling with buyers directly. A good real estate agent will help manage the showings with your schedule. You do, however, need to be flexible and prepared to adjust at times.

Some showings pop up without much warning, so if you’re still living in the house, be ready to drop everything at a moment’s notice so your agent can show the house. (Under no circumstances should you stay in the house during a tour).

Hanging mirrors is also encouraged on show days because prospective buyers can then literally “see” themselves living in the home.

If you want to create a homely and cozy feeling, the smell of a fresh pot of coffee, freshly baked bread, flowers, and ambient background music can change the mood significantly.

Caution: Stash your valuables – it is very important to ensure that all valuables are packed away in a locked cupboard. If there is anything in particular that you need to point out to the agent, be sure to do so. Valuables would include any small items of value.

NEGOTIATING & CLOSING A DEAL4

REVIEW YOUR OFFERS TO PICK THE BEST ONE

It could happen the day your home hits the market or 30 days down the road after dozens of showings.

Whatever the case, you’ll rejoice the moment your agent calls and says, “We’ve got an offer!”

If you’re lucky, you’ll get more than one buyer chomping at the bit for your home and trigger a bidding war.

Your real estate agent will help you weigh the strength of an offer and walk you through which offer (if there are multiple on the table) you should choose, step by step:

CONSIDER YOUR OFFERS

If you receive multiple offers, you’ve got options (and leverage). You may be thinking, “Well, that’s easy, I’ll go with whoever bids the highest!” But money is just one part of the equation, so ask your agent to help you read the fine print. The highest offer on the table may come with risks that make your contract vulnerable to delays and termination.

SUBMIT A COUNTEROFFER

If you feel that the offer(s) you’ve received are too low, you can choose to counter back with a price you’re comfortable with. Keep in mind, this puts the ball back in the buyers’ court. So, if they don’t like your counteroffer, they can choose to walk away and you could lose your original offer. To put your best foot forward in a counteroffer, keep your emotions in check and revisit your motivations for selling in the first place.

ACCEPT AN OFFER

Once you feel that you’ve received the best offer for your home, accept it! This will get the ball rolling on the sale process.

IF YOU DON’T RECEIVE ANY OFFERS… GO BACK TO THE DRAWING BOARD

It’s always a possibility that your home will sit on the market without any offers. This could be because you priced the home too high, you didn’t market it well enough, or simply because it’s not a good market for selling. Whatever the case, discuss the next move with your real estate agent.

SUBMIT THE OFFER TO THE CONVEYANCER

Once you've accepted an offer, you will need to sign the offer agreement and your agent will then submit it to the conveyancer. The conveyancer acts as the third party to gather documents and payments between you and the buyer and oversee that the legal process is adhered to.

If there are any issues with the title deed, it could hold up your sale, so you’ll want to get the title deed ASAP and then sort out any issues as soon as possible.

Issues can involve:

Liens or judgments

Trust complications

Lender balances

Property Taxes

Encroachments

Fix the issue before the sale closes. You can bring in your own professionals to fix the problem before completing the sale. While this route could delay the closing date, it will allow you to hire professionals that you trust and resolve the issue your way. Give the buyers a credit to fix the issues themselves. Essentially, you can throw money at the problem by giving the buyers a repair credit at closing. Simply write them a check, and the problem disappears! This is a great option if you’re trying to keep the sale moving forward on a tight timeline, though you may find yourself paying more in credits than the actual cost to repair the problem. Reject buyer repair requests. If you got a pre-inspection before listing your house, you probably priced the house lower with these issues in mind. If the price reflects your home’s condition and the work that needs to be done, you don’t have to give buyers anything else. However, rejecting repair requests allows buyers the opportunity to back out of the sale if the contract was contingent on a home inspection.

THE BANK VALUATION APPRAISAL

Once all the paperwork has been completed and there is a bank loan involved, the bank will order a valuation on the property. The valuation essentially determines the fair market value of the home and verifies that the buyer isn’t paying more for the house than it’s worth. There is generally no cost to either party.

THE HAND-OVER

Before you celebrate, there’s a giant to-do list. Check with your real estate agent about what paperwork you’ll need to have ready to close your home sale.

This is part of a hassle-free, stress-free handover that will make all parties happy.

Gather up any paperwork related to the house such as warranties and manuals. Put keys, codes and garage door openers in a safe, accessible place for the buyers. Generally the kitchen counter. Ensure your plans for move out date” are solid. Prepare to move out no later than your closing date.

Deep clean the house from top to bottom, as you would wish to have done. This includes steam cleaning carpets. Make sure everything is out of your house and into your new house or transferred to a storage unit.

Double check closets, cabinets, and crawl spaces. Once you hand over the keys, anything that’s left inside will be owned by the buyers.

Change your address and forward your mail. If anything gets delivered to your house once the new owners are moved in, you may never get it back.

Notify creditors, subscriptions, family, and friends of your new address. Call your credit card companies and your bank to give them your new address. Cancel homeowners insurance once you’ve transferred the title of your home.

ADVICE

1 3

If your home is going to sell at the best price, it needs to COME ON THE MARKET AT THE RIGHT ASKING PRICE.

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STUDY MARKET INFORMATION, especially the availability of stock or “competitors” in your home price category. Be careful where there are large stock holdings. Sellers need to be in the top 10 in terms of desirability and/or price, in order to attract attention.

Call for a PROFESSIONAL WRITTEN VALUATION ESTIMATE from your agent.

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Ask your agent for a WRITTEN MARKETING PLAN for your home with specific actions of service delivery.

Call for your selected Agency’s TRACK RECORD and NATIONAL EXPOSURE in terms of sales.

Ask to see your selected Agency’s ADVERTISING PROFILE and average weekly SHOW HOUSE VISABILITY.

Check your selected Agency’s ONLINE VISIBILITY across all channels, websites, Social Media and National PR.

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Sole Mandates with the right Agency, linked to written commitment regarding marketing, is the recommended way of selling, as it results in FOCUSED ATTENTION ON YOUR PROPERTY.

Select an INDIVIDUAL AGENT to be accountable for the sale of your property. You should feel comfortable that you can “work” with the person.

It would be wise for SELLERS AT OVER R5 000 000 TO CONSIDER A LONGER MANDATE period, given the current economic outlook.

WHO PAYS FOR WHAT8

AGENT COMMISSION

SELLER

LEVY AMOUNT OWING TO BODY CORPORATE OR HOA

PENALTY BOND INTEREST

If 3 months written notice is not given to bank to cancel seller’s bond

It equates to approx one months bond instalment for each completed month of notice not given (or pro rata thereof)

BOND CANCELLATION FEE

(If property is bonded)

Between R2300 – R3000, even if bond in nil

RATES & SERVICES

Any arrears, current amounts owing and a 120 day advance collection amount

COMPLIANCE CERTIFICATES

Electrical Beetle (if applicable)

Plumbing (if applicable)

Gas (if applicable)

Electric Fence (if applicable)

CERTIFIED COPY OF TITLE DEED

If original is misplaced – cost is R1000 approx

ANY REPAIRS AGREED TO IN OTP

OTHER (IF APPLICABLE)

Financial undertakings for seller

Bridging finance for seller

Obtain directive from SARS (withholding tax scenario)

Repatriation of funds Foreign investment abroad

PURCHASER

TRANSFER COSTS

Transfer duty – payable to the conveyancers approx 1 month before transfer

No transfer duty is payable if seller is VAT registered and the sale forms part of the seller’s VATable enterprise. Purchase price will either be recorded in contract as inclusive or exclusive of VAT.

The account to purchaser may include the cost of obtaining a home owners association consent to transfer Levy clearance certificate (in sectional title transfers

BOND COSTS (IF REGISTERING A BOND)

TRIPARTITE AGREEMENT (IF APPLICABLE)

May be required if purchaser intends subdividing or renovating

If purchaser moves in before transfer

CONVEYANCER’S CERTIFICATE RE TITLE RESTRICTIONS OCCUPATION RENT (IF APPLICABLE) PLANS

Always try and provide for a figure in the OTP, even if occupation is on transfer

If agreement does not oblige seller to deliver copies of approved plans, purchaser has to

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CERTIFICATES OF COMPLIANCE (C.O.C)

ELECTRICAL

• Certifies that the electrical installation on the property complies with the required safety standards. • Governed by the Occupational Health & Safety Act. • The certificate must not have been issued more than 2 years prior to the transfer date, provided there have been no modifications to the installation since being issued. • Parties cannot contract out of this or agree to waive the requirement. • Regulations state property owner may not allow the transfer of ownership without the certificate. Parties may however agree in the Agreement of Sale that it is the purchaser’s responsibility to obtain it, provided it is done before transfer. • Best for the inspection and remedial work to be carried out asap after the deal is concluded due to bank and bond requirements and obviously prior to purchaser moving in; however, the parties can agree it is the purchaser’s responsibility to obtain.

ELECTRIC FENCE (IF APPLICABLE)

• Certifies that the electric fence installation complies with the required safety standards. • Governed by the Occupational Health & Safety Act. • No set period of validity and a seller complies if the existing valid certificate is provided to the purchaser. A seller need only provide a new certificate to the purchaser if a change was made to the installation after the current certificate was issued. • Parties can agree amongst each other who shall obtain this certificate. • The requirement also applies to sales of sectional title units if there is an electrical fence system situate on the common property. • Best for the inspection and remedial work to be carried out asap after the deal is concluded due to bank and bond requirements and obviously prior to purchaser moving in; however, the parties can agree it is the purchaser’s responsibility to obtain.

GAS (IF APPLICABLE)

• Certifies that the gas installation on the property complies with the required safety standards. • Governed by the Occupational Health & Safety Act. • No set period of validity. A new certificate must be obtained every time there is a change of ownership. • Parties cannot contract out of this or agree to waive. • Seller is required to obtain the certificate prior to transfer. • Best for the inspection and remedial work to be carried out asap after the deal is concluded due to bank and bond requirements and obviously prior to purchaser moving in; however, the parties can

PLUMBING (IF APPLICABLE)

• Certifies that the water installation at the property is in line with municipal and building guidelines. • Governed by the City of Cape Town Water By-law. Only applicable to transfers within the municipal jurisdiction of the City of Cape Town. • No set period of validity. A new certificate must be obtained every time there is a change of ownership. • Parties cannot contract out of this or agree to waive. • Seller is required to submit the certificate to the City of Cape Town prior to transfer.

BEETLE (IF APPLICABLE)

• Certifies that the accessible wood of permanent structures on the property are free from certain wood-destroying beetles. • Not governed by any law, but a practice that has evolved over the years. • Parties agree contractually on the validity period of the certificate once issued. • Parties can contract out of this; however, if parties agree that no certificate is necessary and bank requires it for purchaser’s bond, then that is for the purchaser’s expense. • Seller is required to obtain the certificate prior to transfer. Best for the inspection and remedial work to be carried out asap after the deal is concluded due to bank and bond requirements and obviously prior to purchaser moving in, however, the parties can agree it is the purchaser’s responsibility to obtain.

REGISTRATION PROCESS

STEP 1 RECEIPT OF DEED OF SALE

Acknowledgment of receipt. Deeds Office search and copy of Title Deed requested.

Apply to the municipality for rates figures and valuation certificates.

Apply for levy figures from Body Corporate and consent from Home Owners Association (if applicable).

STEP 2 FULFILMENT OF SUSPENSIVE CONDITIONS

Follow up on fulfillment of suspensive conditions, eg: bond approval or sale of purchaser’s property.

On confirmation of fulfillment, issue cancellation instructions to the seller’s bondholder, if the property is bonded.

Collect necessary documentation from seller and purchaser and draft transfer documents.

STEP 3 SIGNATURE OF DOCUMENTS AND PAYMENT OF COSTS

Seller and purchaser sign transfer documents. Purchaser signs bond documents (if applicable).

Purchaser pays transfer (and bond, if applicable) costs. Seller pays rates, including advance rates, for Rates Clearance Certificate.

Apply for transfer duty receipt, rates clearance certificate, and levy clearance certificate (if applicable).

STEP 4 COMPLIANCE CERTIFICATES

Seller to provide a Plumbing Certificate (if a property falls within the jurisdiction of the City of Cape Town municipality) as well as an Electrical, Beetle, Gas, and Electric Fence certificate (if applicable).

STEP 5 GUARANTEES AND FICA

Ensure satisfactory guarantees are in place for the purchase price. Check FICA compliance.

STEP 6 LODGEMENT OF DEEDS AT DEEDS OFFICE

Upon receipt of transfer duty receipt, rates and/or levy clearance certificate(s), as applicable, and original Title Deed, arrange with linked bond cancellation and bond attorneys for simultaneous lodgement. Deeds lodged at the Deeds Office and allocated a barcode for tracking purposes. Deeds examined.

The examination process takes seven to ten working days.

On about the seventh or tenth working day, the deeds appear in the Prep Room and are ‘up for registration’. The conveyancer has five working days to finalize any outstanding and hand in for registration the next day.

STEP 7 REGISTRATION

Once handed in, the deeds appear in the Execution Room. The conveyancer registers the deeds at 10h00. Ownership passes from the seller to the purchaser. Purchaser’s new bond (if applicable) is registered. The seller’s existing bond (if applicable) is canceled.

Final accounts are drawn for the seller and purchaser. The Seller is paid out net proceeds. The Agent’s commission is paid.

STEP 8 DELIVERY OF DEEDS

Once registered, the deeds are numbered and microfilmed. It can take up to three months for the Deeds Office to deliver the original Title Deed and Mortgage Bond back to the conveyancer. Once delivered, the conveyancer will send the original Title Deed to the relevant bank (if the property is bonded) or the purchaser (if unbounded).