Keep your eyes open...

Earlier this week we published an article aimed at equipping you to make sound and wise decisions when signing an Offer to Purchase.  With such an important contract in hand, you need to ensure that your signature binds you to an agreement that is reasonable and protects both you and the other party.

There are many things to take into account and we encourage you to take your time to read the contract in its entirety before signing it.

To help you know what to look out for – here are some more prudent points:

1. Faults, renovations and defects:  the days of buying ‘voetstoets’ – what you see is what you get – are now in the past (Since the effect of the Consumer Protection Act, April 2011).  If you are buying through an agent or developer, the seller needs to state all and any faults, renovations and defects of the property.  If they agree to fix these, then that needs to be stated in the Offer to Purchase as well as the date by which the jobs should be completed.  Without a deadline, if they are showing intent to fix the problems, you will have a hard time tying them down to a completion date.  If you are able to, taking photographs of the areas in question will help you ascertain if they have been sorted out properly.
2. Electrical compliance:  the law requires the seller to have the property passed with an electrical compliance certificate.  The buyer can also ask for extra certificates regarding structures, pests etc.  If you suspect that a property might be unsafe or not satisfactorily structurally sound, you should request that a professional have a look and furnish you with a certificate stating what needs to be done.  This should all be included in the offer to purchase.
3. Suspensive conditions: these suspend the operation of all, or some, of the obligations flowing from the contract until the happening of a future event.  These could include securing a home loan for the purchase amount; the sale of the buyer’s existing property; the acquisition of compliance certificates (as in point 2).  Again, each condition should have a date attached to it – check that these fall within a period with which you are happy.  If these conditions are not met, the Offer to Purchase may be suspended. 
4. Resolutive conditions:  as in point three, but these conditions will cause the termination, and not the suspension of the contract.  It stipulates that if a certain condition (occurrence) of an event specified in the clause is not met then the agreement will terminate.

If you need help or advice on renting or selling, contact us at Rivigan Property Group for more information.