Selling property - what you need to know.
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Selling a home involves legal steps and obligations: these are the requirements sellers should know to ensure a smooth and efficient transfer process. Whether you sell privately or hire a property practitioner, understanding these steps is essential to avoid potential obstacles.
In this piece, we offer a general overview of what to expect during the selling and buying process. However, there are always aspects that may be individual to your specific transaction.
Upfront Documentation
"While the average homeowner will only be required to submit ID and Proof of Address, the stringent nature of this new process may entail additional documentation depending on the situation.
More complex ownership schemes will require documentation over and above. These documents may include, but are not limited to, marriage certificates, documents related to trusts and potential Letters of Authority. Be sure to ask our property practitioners for more information."
Agreeing on the Mandate
When hiring a property practitioner, you can opt for a sole or open mandate. A sole mandate grants exclusive rights to one agency to market and sell the property, while an open mandate allows multiple agencies to get involved. Each approach has pros and cons, so consider your preferences and needs.
Sole Mandate Pros:
- Commitment and dedicated attention
- Unified marketing strategy
- Streamlined communication and negotiation
Sole Mandate Cons:
- Limited exposure, however, is largely mitigated by online property platforms.:
- Potential lack of competitive bidding:
- Dependence on a single property practitioner's performance
Open Mandate Pros:
- Increased Visibility and Market Reach via diverse marketing strategies of different agencies
- Potential for Competitive Bidding
Open Mandate Cons:
- Diluted property practitioner attention
- Potential Conflicts and Miscommunication
- Management Complexity
- Overexposure
Drawing Up The Sales Agreement
It's advisable to have an attorney draft the sales agreement, which includes crucial information such as the seller's full name, address, and ID number (or entity details). While you can create the agreement yourself, hiring a professional is recommended. Professional Property Practitioners often provide standard sales agreements that can also be used.
The OTP
The Offer To Purchase is the formal proposal made by the buyer to the property seller. As the seller, carefully review the offer to ensure it aligns with your terms. There's typically a specified period for the seller to accept the offer, after which it becomes invalid. Remember, breaking the terms of the agreement can result in penalties.
What the Seller Must Disclose to The Buyer
Sellers are legally obligated to disclose any flaws or defects in the property, even when selling it "voetstoots" (as is). This requirement emphasises the importance of transparency and fairness in real estate transactions.
Full disclosure from sellers enables buyers to make informed decisions and avoid unpleasant surprises. Whether it's a leaky roof or a creaky staircase, sellers must honestly and openly communicate any known issues to potential buyers.
This legal obligation ensures trust, minimises disputes, and upholds ethical standards in the real estate industry. Transparency benefits both parties and contributes to a smoother and more equitable selling process.
Transfer Process
The seller is responsible for appointing a conveyancing attorney to facilitate the property transfer from the seller's name to the buyer's name. This process must involve an attorney to ensure legal compliance. This process usually takes 2 - 3 months, depending on the situation.
Should you hire a Property Practitioner?
While selling privately is an option, hiring a Property Practitioner is highly recommended due to their valuable advice, which encompasses marketing and legal processes and helps you navigate the potential drama of not being aware of these crucial aspects. Moreover, they can significantly reduce the administrative tasks on your behalf. Their expertise can streamline the selling process and ensure that you avoid any potential pitfalls.
Remember, understanding and fulfilling these legal obligations will help ensure a seamless home-selling experience, enabling you to navigate the process confidently and effectively.
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Author: Bryce Anderson