Real Estate Investor Magazine South Africa Real Estate Investor Magazine - July 2017 | Page 24

Piles of paper
The process of closing the deal can be overwhelming,
with countless forms to be initialled and signed. In
order to avoid being caught off-guard by unexpected
fine-print, be sure to consult an attorney specialising
in property. Not only does this give you peace of mind,
but it also ensures you get the deal you agreed to.
A property attorney, also called a conveyancing
attorney, can provide valuable advice before you sign
the sale agreement. Technicalities can sometimes
come back to bite you, such as a misunderstanding
regarding an offer. Some buyers are under impression
they “just made an offer” but did not realise the “offer”
made would become a legal and binding contract of
law, once accepted by the seller.
The property attorney will also be able to give
advice on the vital components of the sale agreement.
“We receive many sale agreements with mistakes in
the description in the details of the seller or buyer, the
property, the deposit or balance of the purchase price
to be paid” says Meyer de Waal, a property attorney.
“Our first task when we receive a new sale
Aspects like “vacant occupation” or “occupation subject to
existing tenancies (lease agreements) are often overlooked or
not completed in sale agreements.
agreement signed by the seller and purchaser is to
check for mistakes. Careless mistakes can result in
delays or disputes and uncertainty between the seller
and buyer”, says Meyer.
Cross the t and dot the i
Before you finalise a sale, you need to be certain that
you’re buying the property you agreed to. Rather than
covert home-switches or shape-shifting, this problem
refers to misrepresentations of a building and its
structural integrity. As a result, many buyers end up
with a property filled with problems. A final check
of the property and neighbourhood could potentially
save you a chunk of money down the road. Invest in
an authorised home inspection to check for problems
relating to the ground, mould, and even air quality.
Be prepared to wait
Closing day on a sale rarely goes as planned. Be
prepared to wait for paperwork to be amended, parties
to show up, and last-minute negotiations. Once
again, the presence of your property lawyer will make
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JULY 2017 SA Real Estate Investor
this process run more smoothly. Once you’ve taken
ownership of your property, details matter. Simple
things like ensuring you have received all keys to
the property can be the difference between a smooth
closing and a difficult one.
Getting the best returns
If you are investing in a “buy-to-let, make sure you
get the best rental income for your property. Non-
paying tenants can heap up huge legal bills to evict
them and loss of revenue. Look out for the most
efficient rental management service that provides a
tenant pre-screening service, a rental guarantee, and
low monthly rental management services. Services are
available that lowers rental management costs to 2,5
% rather than the conventional 10 %. If the savings
are paid back into the home loan, the home loan can
be repaid mush sooner, saving the property investor
thousands.
The process of closing the deal is usually your last
chance to ensure you’re getting the best deal. Don’t
be afraid to double (or triple!) check details of the
property, as well as asking questions regarding the
finer details. While this is a potentially daunting
process, it also brings you one step closer to the
excitement of moving in.
Next month, this is what we look at. While much
is written about the financial and legal aspects of
buying a property, most of us disregard the trickiness
of the actual move. We’ll share some tips to make the
planning process easier, as well as things to look out
for when selecting a mover. You don’t want to miss it!
FOR MORE INFORMATION AND HANDY ONLINE
TOOLS, TAKE A LOOK AT THE FOLLOWING:
Home loan indication: www.mybondfitness.co.za
Property Virtual Reality tours: www.nichecom.co.uk
Transfer and bond costs calculator: www.avidfirefly.co.za
Find a property online: Property 24; Private Property; IOL
Subsidies for first time buyers: www.flisp.co.za
CMA: www.lightstone.co.za ; www.propstats.co.za
House inspection services: www.inspectahome.co.za/
Rental agency: www.houseMe.co.za
Legal services: www.mdwinc.co.za
www.reimag.co.za