Top 5 Questions to Ask When Buying or Selling Property.
Category Property Advice
A Guide to Understanding the Process and Finances Involved
Buying or selling a home is a significant financial decision, and it is crucial to have a clear understanding of the process. Asking questions can provide reassurance and, in some cases, is essential. In this article, we explore the top five frequently asked questions about buying or selling property and provide answers to help you navigate the process better.
1. How is my property valued?
The value of a property is determined by a combination of factors, including location, size, age, condition, features, and amenities. To establish the market value of a property, a real estate agent will typically consider recent sales of similar properties in the area, known as comparative market analysis (CMA). They will also assess the demand and supply of properties in the local market, current economic conditions, and any unique features or improvements of the property.
With a wealth of information available to both sellers and buyers, it is vital that you price your property right from the start.
2. Where is the best area to invest in?
This question is similar to asking how long a piece of string is, as it depends on a vast number of factors, including the type of property, the desired return on investment, surrounding amenities, safety and security, and individual preference.
Generally speaking, property all over South Africa is a good investment. But, like all investments, property investments need to be actively managed to ensure it grows according to your expectations.
Depending on individual needs and preferences, a trusted property advisor will help you look at factors like location, future developments, and the like if you're looking to make a long-term investment. Property tends to be a very personal investment, each person has their own needs and wants.
3. Is an offer to purchase legally binding?
Yes, a signed offer to purchase is a legal document that is binding.
The document outlines the purchase agreement, which includes the terms and conditions related to the property in question. By signing the offer to purchase, the buyer agrees to the terms stipulated in the documents, including the price they are willing to pay for the property.
If the seller is happy with the price offered by the buyer, the document becomes a legally binding sale agreement.
The bottom line is that you need to be very sure about a potential purchase before signing on the dotted line.
4. How long is an electrical compliance certificate valid?
An Electrical Certificate of Compliance (ECOC) is valid for a period of two years. It is compulsory to be in possession of this document when selling a property, as per the requirements of the Occupational Health and Safety Act under the Electrical Installation Regulations provision.
The ECOC guarantees the condition of the distribution boards, wiring, earthing, and bonding of all metal components.
5. What happens after the bond is granted?
After a bond is granted, a bond attorney is instructed by the bank to register the bond at the deeds office, while the seller advises the transferring attorney to transfer the property.
Next, the bond attorney notifies the transferring attorney of the draft deed of transfer and guarantee requirements.
Then the cancellation attorney cancels the seller's bond and the transferring attorney receives the title deeds and cancellation figures and sends a copy to the bond attorney.
After this, both the buyer and the seller sign the transfer documents. The buyer is then responsible for the transfer costs and the transferring attorney pays for the rates and taxes and transfer duty.
After all, the documents are signed and costs paid, the transfer, new bond, and cancellation bond documents are prepared for lodging at the Deeds Office. Here it takes about three weeks to be checked and readied for registration by the attorneys. On the day of registration, the bank pays the loan as per the guarantees issued. This whole process typically takes around 10 weeks.
Author: Harcourts Summerton
