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

Q & A PROPERTY ADVICE Q I have signed an Offer to Purchase. It has been accepted by the Seller but now I’ve changed my mind. Can I get out of the contract? T NICCI DU PLESSIS DU PLESSIS & CURRAN he simple answer is: Yes, but not without the agreement of the Seller. Surprisingly, it often happens that a Buyer gets cold feet or sees another property which is more desirable. However, the law frowns upon this and the legal approach is “agreements you enter into must be kept”. If the agreement is subject to a bond clause, a tactic commonly used by a Buyer is to advise his bank that he won’t be able to afford the repayments. This will almost certainly stop any bank from approving a loan. A Seller can protect himself by ensuring that the agreement contains a clause compelling the Buyer to act in good faith when applying for his bond. At the very least, the Seller’s claim against the Buyer to force him to act according to the agreement would have a contractual basis. If there is no bond clause, any attempt at cancellation will be a breach by the Buyer and the Seller will be able to hold the Buyer to the sale. If the Seller and the Buyer agree to cancel the sale (litigating against a reluctant Buyer is time-consuming and expensive) you need to know that the agent’s commission would have to be paid. Commission payable is the Seller’s responsibility, so he would need to protect himself against this consequence before agreeing to cancel a sale with a Buyer. Moral of the story: doubts are expensive if they arise after you have signed the agreement. Always seek legal advice before signing. Q In a climate of economic uncertainty, where would you suggest that property market investors place their hard-earned cash if they are considering entering the residential property market? R CARL NORTJE MANAGING DIRECTOR, RAWSON DEVELOPERS awson Developers has noticed that many investors are shunning the rising cost and ongoing hassles involved with investing in and owning freehold residential properties. Reasons include issues such as crime, increasing costs of maintenance, increasing utility costs and the dual problems of traffic congestion and the cost of commuting. We’ve seen a migration towards the city, supported by initiatives such as the Urban Development Zone tax benefit. Working and living close to the CBD affords investors the opportunity for a relatively carefree lock up and go lifestyle. Our investors and investor/occupiers cite reasons which include easy access to major routes and the CBD, accommodation for business visitors from outside the province, family members who are students at medical school or UCT main campus, convenient and safe accommodation and special markets including medical specialists and airline pilots. Another aspect has been the superb growth in value that many early phase investors have seen - for example up to 34% p.a. enjoyed at some of our projects. This is consistent with recent media reports that indicate a so-called ‘semi-gration’ of people and capital from Gauteng and other provinces to certain prime suburbs in the Cape Town CBD. So, this is a good space for investors! 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