select
|

No disclosure, no deal is the rule for ‘bargain’ properties

According to the National Credit Regulator, more than 10-million South Africans are having trouble paying their bills at the moment, and many of the property owners among them are selling now in order to pay off some debt or cut back on their monthly expenses.
 
“In fact, the latest FNB Property Barometer shows that at least 14% of all residential sales currently (or about one in every seven sales) are being driven by owners selling to relieve financial pressure on their households,” says Berry Everitt, CEO of the Chas Everitt International property group.
 
“And this is helping to create a classic ‘buyers’ market’ in most parts of the country, with an increasing supply of stock and excellent opportunities for homebuyers and investors to acquire properties at highly competitive prices.”
 
However, he says, they need to be very wary of bargain-basement purchases, bearing in mind that sellers who are so cash-strapped that they are willing to sell for less than market value will probably not have done any home maintenance for quite some time.
 
“In addition, there are always those who, desperate to sell, will give their property a superficial makeover with the deliberate intention of distracting buyers from certain defects that they cannot afford to repair.”
 
Writing in the Property Signposts newsletter, Everitt says unwary buyers can then get stuck with these defects and have to spend a lot more than they had anticipated, just to get the property up to standard.
 
“In fact, they could easily end up spending more than if they had bought a higher-priced property in the first place and to avoid this possibility, buyers must be sure to deal only with a reputable estate agency like Chas Everitt International, because we require all our sellers to sign a full disclosure document listing all faults and defects of which they are aware, so that potential buyers can be informed about these, and make their decision to purchase - or not - accordingly.”
 
Meanwhile sellers should note, he says, that this practice is in line with the Consumer Protection Act (CPA) - and a Western Cape High Court judgment in 2015 which means that property sellers can no longer rely on a general “voetstoots” or “as-is” clause in the sale agreement to absolve themselves of responsibility for defects that the buyer might only discover after the sale has gone through.
 
“Previously, buyers who signed an offer to purchase containing a voetstoots clause would have to prove that a defect had knowingly and deliberately been concealed with the intention to defraud them if they wanted to claim damages from the seller, which was usually very difficult to do.
 
“Now, however, it has been made very clear that when there is a voetstoots clause in the sale agreement, that agreement must also specify exactly which defects are included in the “as is” condition of the property and are thus being accepted by the buyer.
 
“In short, a bargain is not bargain if the sales agreement is not compliant with the spirit of the CPA and the above judgment. It is much more likely that someone is trying to hoodwink you into buying a money-pit.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK