Real Estate Investor Magazine South Africa Real Estate Investor Magazine - July 2017 | Page 8

Q & A PROPERTY ADVICE Q I have recently sold my home and the Purchaser is complaining about defects in the property which he wants me to repair. The Deed of Sale contained a “voetstoots” clause – am I protected? T NICCI DU PLESSIS DU PLESSIS & CURRAN he term “voetstoots” means that the property is sold ‘as it stands’ or ‘as is’ and is written into the Deed of Sale for the protection of the Seller. The protection it gives is that the Seller is not responsible for any defects (latent or patent) in the property. The Purchaser buys the property in the condition in which he found it at the date of sale. A PATENT defect is one that is obvious and easily seen such as a large and noticeable crack in the wall or bubbling damp. A LATENT defect is one that is hidden and not easily seen. Examples of latent defects are hidden damp, leaking pools and structural problems that can’t be seen with the naked eye. The protection this clause gives a Seller only goes so far. The Seller is legally bound to fully disclose any defects in the property that are latent. If the Seller hides defects in the property on purpose, or does not tell the Purchaser about a defect, he will not be protected. The Seller’s responsibility is also to maintain the property in the same condition from the date of the sale until it is transferred in the Deeds Office. The Purchaser has the duty when buying the property to inspect it properly. If the Purchaser sees defects (patent) that are not acceptable to him, these defects must be addressed in the Deed of Sale as a special condition. If the Seller accepts this, he has then agreed to fix the problem before registration. Unfortunately, too many Purchasers are caught up in the emotion of buying a house and neglect to scrutinise it properly. Q Property, is it a true asset? W ADRIAN GOSLETT, REGIONAL DIRECTOR AND CEO OF RE/ MAX OF SOUTHERN AFRICA hile owning a property is considered as possessing an asset, not every home is considered a true asset. To determine whether a home is a true asset, the term must be defined. The defining factor that separates an asset from a true asset is that a true asset is something that generates an income which is more than the expenses that it takes to retain it. To evaluate whether a home is a true asset, investors will need to determine whether the costs to maintain the property are less than the income that the property could generate. The only way in which a property can generate an income would be through letting it out. In this instance, the operational income would be the rental amount less tax. For the property to be a true asset, this amount should be more than the monthly total cost of owning the property. If managed correctly, the profit made from owning a true asset can be used to save up and purchase the next true asset. A true asset can be the foundation of building wealth. BUSINESS I FAMILY I PROPERTY We look after your interests Unit 12, Harfield Village Centre, 48 2nd Ave, Claremont, 7708 Mobile: [phone] Email: [email protected] www.duplessiscurran.co.za