We ensure that the transfer of one of your biggest assets take place in an effective and speedy manner.
We assist with the following;
– Drafting of offers to purchase and agreements of sale
– Option agreements
– Title deeds and all transfer documents
– Commercial and private bonds
– Notarial bonds
– Registration of lease agreements
– Servitudes of right of way
– Lost title deeds
BUYING A HOUSE
Buying a house is probably the biggest and most important investment you will ever make.
When you do find a house you wish to buy and before you sign any deed of sale (also sometimes referred to as an Offer to Purchase), follow these simple guidelines.
- Examine the house thoroughly. Enquire about the roof, gutters, electrical wiring, foundation etc. should you have any doubts at all, consult an expert to examine the house. Should there be any defects, the deed of sale should provide for the correction thereof by the seller at his cost.
- Before you sign a deed of sale, give the document to your attorney to examine. Ask about anything that is not clear.
- Enquire about any additional costs, such as rates and transfer costs – your attorney will have the answers. All provisions and promises must come from part of the written contract. Verbal agreements are not enforceable. A document signed by you and then accepted by the buyer could become a binding agreement.
- Ensure that your finances are sound. Should you need a bond, also make provision for the costs or valuation of the property and registration – your attorney can tell you about this.
- If you are not certain whether you will be able to obtain a loan to provide for the purchase price and / or other costs, make the sale subject to the obtaining loan.
- Ensure that the deed of sale provides for the issue of a beetle-free certificate at the expense of the seller in the Cape Province and Kwazulu-Natal, and for a certificate of compliance in respect of the electrical installation in all provinces.
- Does the seller require a deposit on the selling price? Should this be the case, arrange for payment in trust to any attorney pending transfer and for safekeeping in a special savings account until the house is in your name.
- With the consent of both parties the attorney may invest these monies subject to the condition that the interest earned will be for your own account.
- Take note of the date of occupation in the deed of sale. Should you move in before the house is in your name, you would be expected to pay rent. Make sure who is responsible for the payment of taxes, levies, and insurance premiums during this period. Should the sale fall through after you have moved in, you would naturally have to move out again with the attendant expense and inconvenience.
- If the seller wants to remove any items such as plants, cupboards etc, this needs to be explicitly set out in the contract. Any loose items (such as curtains, swimming pool equipment etc) must also be specified.
SELLING A HOUSE
Follow these guidelines:
- Keep your house and the premises neat and clean that it is attractive to prospective buyers.
- Consult your attorney concerning your rights and obligations. As the seller you have the right to appoint your attorney to handle the transfer.
- Approach one or more estate agents of your choice to list your property. Do not give sole rights to sell the property to one agency without considering it very carefully. Your attorney will be able to advise you about this.
- When you find a buyer, do not sign any offer or deed of sale before your attorney has examined the document. All provisions and promises must form part of the written contract. Verbal agreements are not enforceable.
- Before you sign, find out what commission is payable to the estate agent and whether VAT is included.
- Give the estate agent the name of your attorney – your attorney will deal with the legal aspects and ensure that the house is transferred to the buyer. He will also organise the finances and ensure that you receive your money.
The following is a list of the most important requirements that should be met in a deed of sale. However, this list is not complete as each transaction has its individual requirements. Should you wish to do so, your attorney can draw up the deed of sale.
- The names, identity numbers and marriage status (e.g. Married in or out of community of property) or capacity (when a company is involved) of the parties concerned, as well as the purchaser’s and the buyer’s addresses.
- The description and size of the property or stand as detailed in your deed of transfer.
- The selling price and manner of payment.
- The provision that the buyer pays all transfer fees.
- The name of your attorney handling the transfer.
- The date of taking possession and occupation.
- The provision that the buyer is responsible for all taxes and other municipal charges from the day of taking possession.
- The provision that the house is sold ‘as is’ (in other words without any guarantee on your part regarding visible or hidden faults)
- The commission due and the name of the state agent.
- Should the date of occupancy be before the date of transfer, ensure that the buyer pays interest on the sale figure or rent until the date of transfer. The amount and manner of payment must be stipulated.
- The fact that no change to the deed of sale is valid unless it is in writing and signed by both parties.
- Whether a beetle-free certificate should be obtained (Cape provinces and Kwazulu-Natal) and if so who should pay for the inspection and any work required.
- Any special conditions, for example:
- A list of any articles excluded from the sale.
- Whether the sale is subject to the buyer obtaining a bond or the sale of the buyer‘s house. Your attorney can advise you with regards to these conditions.
- A special deed of sale should be drawn up should the buyer wish to pay the selling price over an extended period of time. This is a relatively complex issue which also holds certain risks and you are strongly urged to allow your attorney to draw up the deed of sale.
- (Supplied by the Law Society of the Cape of Good Hope)