Information

IT’S ALL IN THE PREPARATION. By knowing some commonly misunderstood terms and frequently asked questions, you are able to prepare the answers most effectively in order to secure your mandate.

What is an open listing?
An open listing arrangement is a situation whereby you have gained the services of a number of different agents, who will list your property and attempt to find a buyer for you.
You are only expected to pay a commission to the successful agent when a buyer has been found.
The benefit of this type of listing is that your property may be advertised across a wider spectrum of potential buyers, but the downside is that you may not receive the same individual attention as you would by employing the services of only one agent.

What is an exclusive listing?
With an exclusive agency agreement, you give only one agent the rights to sell your property.
This may entitle the agent to be paid a commission if the property is sold during the fixed term of the agreement, even if you or another agent were responsible for the sale.
An exclusive listing arrangement is most commonly used for the sale of residential properties.
What is the agent’s role at an open house?
An agent’s job at an open house inspection is to listen closely and observe attendees to gauge buyer interest and motivation.
By engaging in conversation, the agent can learn more about a potential buyer’s specific circumstances and requirements. This helps the agent to discuss the aspects of the property relevant to the buyer.
At the same time, buyers may need to view the property without pressure and talk about it with someone they have brought along. A good agent will be aware of this and only engage in conversation at appropriate moments.

Why should I (the seller) be out during an open house?
Getting a buyer to picture themselves living in the property – sometimes referred to as ‘mentally moving in’ – is one of the most effective ways to generate serious interest.
For this to be achieved, it is essential that they feel relaxed and unhurried. Buyers do not wish to intrude on the current owner’s space, so your presence can sometimes act as a deterrent for them to stay longer and continue to consider the property carefully.

Why is it important to declutter an open house?
Decluttering involves removing personal items as much as possible prior to an open house, in order to help the buyer imagine themselves living in the property.
A first impression often lasts and excessive belongings can make a home seem smaller, darker and less airy than it really is.
Modern homes and decor tastes also tend to lean towards a more sparse presentation, while too much clutter can leave buyers with the sense that finding storage space might be problematic.

How long should it take to sell my house?
Once your home is placed on the market, the length of time it takes to sell depends on a number of circumstances.
The biggest factor is how much you want to make for the property, with auction generally proving to be the most effective way to sell it for the best price in the shortest possible timeframe.
An auction can secure you a quick sale because buyers are compelled to act on the day or risk losing the property to somebody else.
An agent can tell you the approximate number of days properties similar to yours have spent on the market before selling.

What does ‘overcapitalised’ mean?
The term ‘overcapitalised’ refers to a situation where you have spent more money on your property than you will recoup from the sale price.
While it is likely that any work you have done – such as landscaping or interior construction – will add value to the property, there is no guarantee that the full amount spent on these improvements will be seen in the eventual price of sale.

Can I sell my property while it is currently leased?
You are able to sell your property while it is being leased, but any potential purchaser must be told there is a current lease in place and that the property will not be sold with vacant possession.
The tenant has the right to occupy the residence until the end of the lease term, unless both parties negotiate and agree to terminate the existing agreement.
In some cases, the fact your property has reliable tenants in place may actually be appealing to prospective investors.
Do I pay a commission if I sell the property myself?
If you sell the property yourself, whether or not you have to pay the agent a commission will depend entirely on the agreement you signed with them.
In many cases you may still need to pay the commission as, for example, it is likely that the promotional activities undertaken by the agent exposed the buyer to the property on the market.
You should talk to your agent about this issue, or alternatively take a copy of the agreement to your solicitor or conveyancer for advice.

Can I sell my house by myself?
It is not a legal requirement to use an agent to sell your property – you may elect to undertake the process yourself.
However, there are many reasons why people generally engage the services of a professional to ensure the best price.
Aside from the obvious expertise in marketing, negotiation and selling that an agent brings, most buyers also prefer not to deal directly with the seller. If buyers know you are not paying for an agent, they will usually expect to see the house price reduced accordingly.
In the end, selling a property on your own might lead to a lot of work and pressure, without actually saving any money or maximising the end sale value.

Sales Agency Agreement are written to protect your rights (as the seller)
So here are some minor things you should know as a seller and as an agent be prepared to explain
A sales agency agreement exists between you and the real estate agent who is helping you to sell your property. It states what they promise to provide for you, along with an estimated sale amount or price range.
This arrangement outlines the amount of fees or commission payable by you for the real estate agent’s services. A commission is usually only due when the sale of the property is completed.
The extent of the real estate agent’s authority to act in your behalf – such as to exchange or make changes on a sale contract – is also stipulated within this document.
You have the right to negotiate with the real estate agent about the terms and conditions of the agreement and to ask for any legally-permitted changes to be made.
The sales agency agreement usually involves a fixed term – a specified amount of time during which time it cannot be ceased unless accepted by both parties. An open-ended agreement with no fixed term must indicate an alternative method for being brought to an end.
If you are unsure about how to end an agreement you should seek legal advice.
In the event that you are unhappy with any of the real estate agent’s services, it is essential to officially bring the sales agency agreement to a close before signing up with a new organisation – otherwise both might be able to charge you a commission when the property is sold. There are a number of things that can affect the price of a home, including location, the type of property, demand in your local area and marketing conditions. The Selling Process
A simple explanation of the various stages of the property sale process.
In all states and territories the process of selling property is regulated by legislation and follows a regular pattern.
Initially you must seek a property appraisal, whereby your local real estate agent inspects your house or apartment and talks you through the overall process.
Once this formal inspection is completed, the real estate agent will discuss your preferred method of sale and an advertising strategy with you.
With the agency agreement signed, you will then be required to complete all property listing details and schedule an open home inspection. In some states a contract for sale should be prepared at this point.
It is vital to promote the dwelling to the best of your ability and resources – take appropriate photographs, ensure signage is clear and well attached and engage in local marketing online, as well as newspapers and real estate agent windows. Your property should also appear on the agent’s database.
The next step is to allow plenty of notice regarding inspections times for the property where possible.
Details about all attendees should be recorded, along with a full list of comments and feedback.
One of the most important aspects of the process from your point of view is negotiating the sale – you will be seeking the best price and conditions from an interested buyer.
At this point, real estate agents will check and assist with the purchaser’s finance, sale of property, building inspections and other conditions where necessary.

Once exact terms are agreed on by both parties, a security deposit is taken from the buyer and copies of the contract are given to the solicitors or conveyancers on each side. The conveyancer is generally selected by the seller, and your local agent will be able to suggest a reliable company for you to use. All parties are kept informed of the progress of the contract.
When the property is finally sold, a sticker is placed on the sign outside the building to indicate that it is no longer available.
All parties confirm their agreement that the sale has been finalised so that keys can be transferred to the new owner and a settlement day arranged.
Eventually the new owners move into the property and the sale process is officially completed.

The Selling Process by steps
1. Property appraisal:
 Real Estate Agent inspects the property
 Real Estate Agent talks you though the process
 Formal property market appraisal completed
 Method of sale and marketing/advertising strategy discussed

2. Selling:
 Presentation advice provided
 Marketing/advertising strategy agreed on
 Agency agreement signed
 Property listing details completed
 Keys and access details collected
 Open Home scheduled
 Contract for Sale prepared (in some states)

3. Promotion:
 Photos taken
 Property signage done
 Agent’s database advised
 Local marketing
 Internet/window/newspaper and any other marketing/advertising commences

4. Inspections:
 Notice for inspection provided where possible
 Details of all attendees recorded
 All comments and feedback provided

5. Negotiating the sale:
 Best price and conditions are negotiated
 Signing between parties is formalised
 Real estate agent’s check and assist with purchaser’s finance, sale of property, building inspections, and other conditions where necessary

6. Contract of Sale:
 Once terms are agreed a security deposit is taken from the buyer
 Copies of the contract are given to both parties’ solicitors/conveyancers
 All parties are kept informed

7. SOLD!
 Sold sticker placed on sign board
 All parties confirm the sale is finalised
 Transfer of keys and settlement day is arranged
 New owners move in

Here are some things sellers think about when choosing the right real estate agent.
As an agent it may work to your advantage to answer these questions before they are even asked. A great way to do this is to present it in your sales pack when securing the mandate. There are lots of things to consider when choosing a real estate agent to sell your property:
 Can they display their local knowledge of your area?
 Do they have the right attitude?
 Do they listen to your concerns and answer your questions?
 Can they detail exactly how they will approach selling your property?
 Will they clearly outline the activities and marketing they will undertake and offer a guarantee of service?
 Will they be honest and act in your best interests?
 Do they have any comparable previous sales they can show?
 Did they offer proof of a database of buyers ready to market your property to?
 Are they qualified to do the job? (EAAB)

Property Styling Tips
Make your property more attractive to buyers with these simple ideas…As an agent, go the extra mile and guide your clients. Small changes can make a big difference which can quicken the sale and increase perceived value
Listing your property for sale can be both exciting and terrifying, however some small changes can make a big impact on your property’s attractiveness and ultimately the selling price.

Make an entrance – Front Yard
 Add interest to your doorway with potted plants
 Pave a pathway to your front door
 Spruce up your front door with a coat of paint
 Consider improving privacy by adding a low wall at the front of your house
 If your hallway is narrow and dark paint it a light colour and add a broad floor runner
 Invest in a new front door mat

Living Style – Lounge Room
 Use neutral colours in your living space
 Use receding colours like blues and greens to make the small space seem larger
 Find a focus in your room. If you don’t have a natural focus, add a feature wall
 Ensure your carpets are cleaned
 Ensure marked or damaged timber floors are re-sanded and polished
 Layout your living area to show how you live there

The Room That Sells – Kitchens
 Fix the floor by lifting old lino and replacing it with new lino, polished floorboards or tiles
 If your benchtops are scratched or stained, replace them with new laminate benchtops
 New cupboard and drawer handles will add life to an old kitchen
 A fresh coat of paint will cover cooking splatters and add life to a drab kitchen
 Kitchen clutter must be cleared

Soak Up a Sale – Bathroom
 Your bathroom must be spotless and tiles clean
 Fix or replace cracked basins, toilets or tubs
 Air your bathroom before inspections – bad smells are a buyer turn off!
 Add a little luxury with plump towels, handmade soaps, a plant or flowers
 Add some boutique bath products
 If your bathroom is small maximise space by putting the towel rail behind the door

Sleeping In Style
 Reduce the amount of furniture in small bedrooms to give the impression of space
 Storage is important – consider adding built-in wardrobes
 Add a little luxury with fresh linen, puffed pillows and extra cushions
 Dimmer switches create atmosphere in a bedroom
 De-personalise your bedroom but add little touches like candles and perfume bottles

Step Outside – Backyard
 Trim your lawns and weed your garden beds
 Defining your garden bed borders
 Add a focal point
 Give the illusion of space in a courtyard by using large pavers
 Introduce colour with pots of whatever is in flower

Finishing Touches
 Ensure all areas have been dusted, vacuumed and place new light globes in all rooms
 Add colour to neutral rooms through accessories
 Keep window treatments simple
 Disguise small windows: hang curtains from the top of the wall not the top of the window
 Add elegance by extending your curtain drop so it pillows on the floor
 Don’t go overboard with patterned accessories as they create a cluttered feeling

PROPERTY QUERIES FROM A BUYER POINT VIEW.

It’s great to prepare yourself to know as much as possible about the property before you market it. This shows the sellers you are serious about assisting them, and impresses the buyers. Here are some basic questions which can be discussed and prepared before they get addressed by the potential buyers.

1. How long has this house been on the market?
This is an important question and one that will indicate how desirable the property is. If it’s been on for more than six months, you need to ask yourself what’s stopping it from selling.

2. Is there room for price negotiation?
This helps if you are on a tight budget, but it is also a question which could highlight potential problems. If the seller is quick to meet your demands and accept a lower price, then listen for those alarm bells. If the seller is desperate to get rid of the property, there may be a hidden reason which could later affect you as the buyer. A home inspection will help ensure that you are not just buying someone else’s nightmare.

3. How long have the previous owners lived there?
Find out how long the present owners stayed there. If they’ve been there for several years, chances are they have been relatively happy, which is always a good sign.

4. Do you know of any damage to the property?
Exterior damages are often easy to spot but can be missed while internal damages such as covered over damp or cracks, or roof leaks in the dry season can be hard to detect until you’re living in a house. This means that you must always ask the agent the extent of any damages (if any) the property has incurred. Be bold – a good agent will give you a straight answer.

5. Do you recommend a home inspection?
If the agent hesitates then you should wonder whether the seller has something to hide. Always insist on a home inspection (usually paid for by the buyer) as a condition of sale.

6. Please explain the voetstoots clause and how I can protect myself if problems surface later?
NOTE:-Buyers are becoming savvier. Ensure you are able to explain this clause, BUT if you are ever uncertain we are available to assist you and your buyer. *see notes already provided by Tom/ Lisa in Module 1.
If the agent has asked you to sign an offer document containing a voetstoots clause without counselling you on the implications, then you should suspect that the agent is not acting in your best interests. Insist on using a home inspection clause (which protects the buyer) to balance the protection which a voetstoots clause affords the seller.

7. How did the agent and the seller decide on an asking price?
If the agent is good at their job, they’ll be able to justify why the property has been valued as it has.If you’re lucky though, they might let you in on a secret and tell you that the seller has over-valued the property. This will then give you some idea on whether there is room for negotiation.

8. Have any major additions or alterations been conducted and are there approved plans available?
Make sure you know of any work that has recently been undertaken. Also ensure that the local municipality has approved plans for all alterations and additions.

9. How much are the municipal rates and how much are utility bills in the area?
If you can, try and get an exact figure. As an expense, rates and utility bills may seem small at first in comparison to the property, but they are recurring and you have to make sure it’s affordable in relation to your income.

10. What is broadband like?
This is increasingly one of the most important questions to ask. Today we rely on the internet for just about everything, the speed and ease of getting on the internet is important.

11. Can I speak to the seller?
NOTE:-Your company may have a policy on how to address this is a preferred manner. Prepare yourself that you are no caught off guard when asked, which may come across negatively.
Many estate agents dislike this question because they want to control the sales process (they have the skill and knowledge) , however, speaking directly to the seller can have its advantages. After all, can an estate agent really tell you how noisy the neighbours are, or if dodgy people hang out in the area? Of course, they may not give you a candid account either but if they refuse to speak to you before the transaction, then maybe they’ve got something to hide.

12. Can I have a trial run?
NOTE:-As conveyancers we do NOT recommend occupation before registration as it opens the seller up to unnecessary liability, and places you (the agent) in a very difficult situation. Good to prepare your buyers as it is becoming a more common request from buyers. Sellers are under the impression they will make money off the occupational rental, but the risk far outweighs the benefit. Not a common request, but why not? If you have any doubts in your mind about the condition of the property or the surrounding area and the owner is willing, ask if you can live in the house for a couple of hours. Walking around in five minutes and then leaving isn’t enough time for you to make this kind of decision and if you’re not brave enough to ask, then at the very least, make sure you see it three or four times.

With thanks to Dykes van Heerden Conveyancers for the above information.

5 SOLUTIONS TO OUTRAGEOUS SELLER EXPECTATIONS

Sellers need to understand clearly the impact of unattractive features on the asking price for their property.

PUT AWAY THE TOYS
Some sellers prioritise their children’s happiness above making their property attractive to prospective buyers. Chris had such a couple who didn’t take kindly to his suggestion that they tidy up the toys lying about in their tiny outdoor space. He turned around their thinking by pointing out their target audience, young couples and downsizers, would both most likely be put off by the clutter.

BE PREPARED WITH THE FACTS
Sellers with property with unattractive features such as adjacent busy roads sometimes expect prospective buyers to ‘just get used to it’. Chris responded to this by showing the seller examples of properties he had recently sold near busy roads and how that affected the selling price. Sellers need to understand clearly the impact of unattractive features on the asking price for their property.

SPICK AND SPAN
Most sellers know their property needs to the spotless before being shown to prospective buyers, but there are those that just say they are just to busy to wash the dishes or make the beds. Sellers must be clear on their responsibility to make their home as attractive as possible to buyers, if they are too busy to clean, then they should hire a professional cleaner as soon as the property hits the market.

KNOW THE MARKET
Sellers often have fixed ideas on what their property is worth and could be unwilling for anything less. Chris found the best solution is to come prepared to these clients with comparable sales from the same area for the past six months. This gives sellers factual guidance towards determining a realistic asking price.

NO PRYING EYES
It can require special tact to convince sellers it is better for them not to be present when prospective buyers are brought to their house. Chris explains that buyers prefer to do what they need to without being under the watchful eye of the seller. Sellers are encouraged not to anything that could deter the buyer.

With thanks to Property Professional for the above information.

Being careful and cautious could save you and your client’s life. Here are some safety tips:

Instruct the owner to remove or lock away all valuables and expensive equipment before show days
Check the property out before the viewing, all rooms and cupboards and preferably while talking to someone on the phone telling them what you are doing. Make sure potential weapons such as blocks of knifes are not visible.
Find someone to be there with you, or if that’s not possible, then make it look as if there is another person by e.g. draping a jacket over a chair.
Do a basic identity, credit and employment check on all prospective viewers.
Tell the owner viewing will only be done by appointment, they are not to allow anyone in that show up unannounced. Include phrases like “view by appointment only” on your signage.
Keep your phone close always and try to show the property only during day time.
Keep your wits about you. If you suspect a client is helping him/herself to valuables, don’t confront them. Rather leave the property and call the police and the security company immediately.

With thanks to Property Professional for the above information.

Property industry’s reaction to Mboweni’s mini budget speech
29 Oct 2018
Finance Minister, Tito Mboweni’s maiden Medium Term Budget Policy Statement (MTBPS) highlighted the difficult economic and global environment South Africa is currently facing.

“The real estate market is susceptible to economic uncertainty and the minster needs to restore confidence to ensure local and foreign investors are willing to increase purchasing activity,” says Richard Gray, CEO of Harcourts Africa.
Economic growth predictions for this year have been halved from 1.5% to 0.7%, tax collections are down, unemployment is dire and government debt is now expected to rise to 55.8% of GDP by the end of this year.

Dr Andrew Golding, chief executive of the Pam Golding Property group, says it was “straight-talking as expected” and the minister’s medium term budget speech sought to inspire investor and market confidence in South Africa by reinforcing the five measures recently highlighted by the President in order to stimulate the economy.

“It is time for action,” says Richard Gray, CEO of Harcourts Africa, and we need to see the results of policies and implementation plans otherwise economic stagnation will continue to remain a major concern. “Of course, a concern remains that Treasury’s low growth means debt service costs will rise to 18% of all government spending in 2026 – which translates into almost R1 out of every five going towards paying off loans.”

It is imperative the minister clamps down on wasted expenditure and tries to mitigate the factors leading to drastic economic cycles that create long-lasting fluctuations, says Gray. “The real estate market is susceptible to economic uncertainty and the minster needs to restore confidence to ensure local and foreign investors are willing to increase purchasing activity.”

Youth are our future

“Youth are the future of South Africa,” says Dr Golding. “From a housing perspective, extremely welcome is the announcement of R1 billion in housing subsidies to help low to middle income households gain access to affordable home loans, to enable them to acquire their own homes and achieve security of tenure as well as a nest egg for the future.”

Industrial parks and renewable energy projects

“Also positive is the R669 million to be invested over the medium term to revitalise government-owned industrial parks in township areas, which will boost employment opportunities and hence ultimately local housing markets,” says Dr Golding.

Against a backdrop of rising costs of electricity, renewable energy projects to be introduced are set to make a meaningful contribution to sustainability, including the construction and housing industries, says Dr Golding. “Increasingly, homeowners are embracing the principles of sustainable, ‘green’ building and retro-fits, with such features adding value and desirability to properties.”

Consumer confidence flags – but it’s a buyer’s market

Herschel Jawitz, CEO of Jawitz Properties, welcomed the message that for now taxes will not be increased, which will give cash-strapped consumers a little less to worry about, however, apart from this, there was very little news to uplift consumer confidence. “There was some better than expected news with regard to the latest inflation figures coming in at 4.9% – still within the 6% upper limit – which will stave off an interest rate increase.”

Until consumers feel better about the medium- to long-term situation in the country, the residential market will remain flat with the imbalance between supply and demand widening across almost all segments of the residential market, says Jawitz. “There are sales to be done for sellers who are realistic about the market and what their property is really worth, but for the meantime, the residential market remains firmly a buyer’s market.”

The irony is that for buyers who are prepared to buy in the current market, it offers the best value in terms of prices since the market crash in 2008, says Jawitz.

Dr Golding notes that it is gratifying to hear of measures to ensure accountability in government, so that taxpayers can be assured that their hard-earned money is put to good use in infrastructural improvement, education, job creation and the agricultural sector – the latter especially relevant in terms of food security for the nation.

“We look forward to realise the potential benefits inherent in the revitalisation of public infrastructure, including road networks – so critical for the development of key transport corridors, facilitating ease of commute and access to major centres and hubs for citizens from all walks of life,” says Dr Golding.

And finally

Dr Golding says that an economic stimulus will have meaningful spin-offs for all – including the housing market – but most importantly in the current economy, for increased investor confidence and employment opportunities. “Unemployment is a key imperative, especially given the high percentage of unemployed youth who after all, represent the future of South Africa and who are our aspirant homeowners.

“Enabling and encouraging them to acquire their own residences in turn bodes well for their future financial stability while in turn, impacting positively on the housing market in general. For after all, the housing sector is a significant contributor to government revenue generation via transfer duty, municipal rates and taxes and construction.”

With thanks to Property 24 for the above information.

5 Buying Secrets from Property Investors
Tahir Desai • Oct 22, 2018
When starting out as a property investor a lack of knowledge can lead to costly mistakes. There is so much conflicting information out there that it is easy for a new investor to become confused and end up making the wrong decisions.

Follow these 5 simple tips for finding the perfect property and you’ll be on your way to success as property investor.

Choose the Right Property Type

If you want to enter the buy-to-let market, flats generally make the best investments. Your investment budget would obviously be the main factor, but if you can afford it, choose a two bedroom flat over a one bedroom. If you can stretch your budget a bit further, a second bathroom is great to have too. The idea is to choose a property that would appeal to a number of different tenants. A two bedroom flat would appeal to small families, sharers and single tenants who need either a spare guest room or a home office.

Choose the Right Location

Location is still the main consideration when buying a property, whether it’s for yourself or as an investment. Yes, there is a high demand for rental properties pretty much everywhere, but buying in the right location will get you maximum return on your investment and attract the right type of tenant.

Get your finances organised early

You want to be able to move quickly when you find the right property so that you don’t lose out to the competition. If you don’t have the cash, you will need to get pre-approved for finance. This would put you in a stronger negotiating position. Applying for finance early on, will also make you aware of what you can afford to spend.

Know Your Long Term Goals

If you’re looking for a quick return on your investment, look for properties in up and coming areas with a high growth rate. For longer term investment, the established areas may suit you better. In Johannesburg, for instance, the areas in an around Sandton appeal to a variety different people looking to rent and demand is always high. Having months when your property is not let will be kept to a minimum, making them a great option for rental properties.

Find Motivated Sellers

A motivated seller is one who needs to sell, and sell quickly. A property owner who is no hurry to sell can afford to wait around for a great offer to come along. A motivated seller will be more likely to accept what they think is a fair price for their property as soon as it comes in.

Getting yourself prepared by taking care of finances, learning the demographics of your location as well as the price ranges, understanding your prospective tenant’s requirements then meeting them, all add up to a painless and rewarding buy-to-let experience.

With thanks to Private Property  for the above information.

Budget for these 5 unexpected costs when selling property

 As counter-intuitive as it might be, selling a property can be quite an expensive exercise. While some of these expenses can be offset against the final sale price, others will need to be settled before the sale can go ahead.

“Apart from the agent’s commission, sellers are sometimes caught off guard by the various costs involved in selling a property. To protect against being left with less than what had been budgeted for, sellers should speak to their real estate professional and work out how much these expenses will add up to before they go ahead with the marketing of their home,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

To give sellers a better idea of what they might be in for, RE/MAX of Southern Africa shares the five main expenses that are involved in the sale of most properties:

1. Bond cancellation fees

Each financial institution will have their own rules and applicable charges for cancelling an existing bond, so sellers will have to enquire with their financial institution to discover what they can expect to pay. Most financial institutions require either a 60- or 90-day notice period, otherwise penalty fees will be charged. To avoid these costs, as soon as a seller puts a property on the market, a written letter should be sent to the bank to alert them of an intention to sell.

2. Municipal accounts

In order for the transfer to go ahead, the seller will need to acquire a rates and taxes clearance certificate from the local municipality. This fee is charged to make sure that rates and taxes on the property will still be paid while the registration process is under way. Consequently, the municipality usually asks for between two to six months upfront. The municipality will later refund you if the registration process is completed within a shorter timeframe than what was billed for.

3. Special levies

Similarly, if you live in a sectional title estate, you could be charged roughly three months’ worth of levies upfront before the registration of the sale. Sellers should speak to their HOA or body corporate to find out about these costs.

4. Compliance certificates

Another expense which needs to be covered before the transfer can go ahead is that of the various compliance certificates (electric, plumbing, gas, beetle, electric fence) required during the home inspection process. Sellers will also have to cover the costs of addressing any issues that are pointed out in order for the certificate to be issued.

5. Tenant deposit

If you are renting the property to a tenant, keep in mind that you will need to repay their deposit with interest. You should also make room in your budget to pay for any possible repairs in case there are any damages to the property after they vacate.

Finally

“Selling a property is not a simple process, but, with the right real estate professional by your side, it can be. Real estate agents deal with these kinds of transactions on a daily basis and will be able to guide you through the above mentioned processes so that you are never left confused or uncertain on how to proceed at any point in the deal,” says Goslett.

With thanks to Property 24 for the above information.

Rezoning or subdividing your property

What rezoning and subdividing are, and how to go about applying for either of these for your property.

You need to apply to the local authority to re-zone or subdivide a property.  The documentation that the local authority requires you to submit is very complex and detailed. It is therefore advisable to seek the assistance of a town planner.

You can stipulate in your Offer to Purchase that the offer is subject to the local authority’s approval of the re-zoning or subdivision or the consent to use the property in a certain way, i.e. getting business rights over a residential property.

What is zoning?

Zoning determines the rights of the property, in terms of what you are able to do with the property and what the property may be used for, i.e. residential use, business rights, and so on.

A brief overview of the rezoning process:

  • A detailed motivation report with plans is submitted to your local council;
  • Advertising of the application needs to be placed in the local newspaper and the provincial gazette calling for any objections;
  • The local town planning department then goes through a process of consideration of the relevant information and objections;
  • The application is then referred to the council committee and provisional committee for final approval or decline.

What is subdivision?

Subdivision is when a piece of land is divided into smaller plots and each division now has its own title deed.

A brief overview of the subdivision process:

  • You need to talk to a town planner together with your architect. They will draw up plans and a detailed report which will be submitted to the city council;
  • Registered letters need to be sent to neighbours, informing them of the planned rezoning and adverts need to be placed in the press allowing for objections;
  • Once approval from neighbors is obtained the plans need to be approved by the council.

Private Property

With thanks to Private Property  for the above information.