Selling Property
THINGS TO CONSIDER BEFORE SELLING YOUR PROPERTY
Property is the most valuable investment and it forms part of a highly legislated sphere of the economy. With the ever-increasing complexity of the property industry, one simply cannot afford that the sale of ones home and/or investment is handled by someone who does not have the necessary knowledge and skill.
Herewith a few factors to consider before placing your property in the market:
Comparable Market Analysis
Property practitioners have access to recent, actual selling prices of properties and they are knowledgeable on market trends. It is therefor recommended to consult with an experienced property practitioner prior to marketing and selling your home to ensure your property is optimally priced. They are also best positioned to give advice on what pre-sale renovations, in all likelihood, will increase your property’s value and what will only take money out of your pocket. Comparable Market Analysis’ are cost and obligation free.
Notice of Cancellation of Bond
If your property is bonded, 90 days’ notice must be tendered to the bond issuer in order to avoid paying penalty interest. It is wise to tender such notice prior to marketing your property and a reference number must be issued once your notice has been received.
Offer to Purchase
The sale of immovable property needs to be in writing to be valid. Except for it being a requirement for validity it also stipulates all the terms & conditions, time periods and consequences of non-compliance applicable to a specific sale.
Property Condition Report
All sellers of residential properties are legally obliged to complete and sign a property condition report on the property they are selling, providing all known defects on the property. This needs to be done prior to marketing the property and property practitioners must disclose the report to potential purchasers at the time of viewing the property. This property condition report will also formally form part of any Offer to Purchase and by completing it a seller is protected from claims of non-disclosure.
72-Hour Clause
The inclusion of a 72-hour clause in any Offer to Purchase containing suspensive conditions is vital. In doing so, marketing of the property can continue up until a certain sale is in place. This ultimately prevents delays in securing a final sale and creates urgency with purchasers to perform within set time periods.
Compliance Certificates & Rates Clearance Certificate
Compliance inspections must be done and certificates issued before the registration of transfer of ownership will take place. The cost for these inspections is normally for the account of the seller.
The following compliance inspections are necessary:
- Inspection for beetle activity;
- Electrical inspection;
- Electrical fencing inspection;
- Gas installation inspection, and
- Plumbing inspection (applicable to properties that falls in the municipal jurisdiction of the City of Cape Town).
These inspections are normally arranged for once there is a certain sale in place and can be paid from the proceeds of the sale.
As part of the conveyancing process a seller will also be liable to settle all outstanding municipal debts and pay a 60-day advance estimate in order to receive a rates clearance certificate. Said certificate is a requirement that needs be met prior to being able to register the transfer of ownership.
Bond Cancellation Costs
If a property is bonded then the cancellation of the existing bond forms part of the process to pass transfer of ownership and the bond institution will charge an administrative fee in lieu of the cancellation of the existing bond.