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.

Going in with eyes wide open

Contracts can be daunting – especially if you don’t deal with them in your normal course of work.  Signing an Offer to Purchase is a complex agreement that has many facets to protect both the buyer and the seller.  At Rivigan Property Group it’s our job to know these contracts and know how to communicate them to our clients in a way that is clear, honest - and in their best interests.  Many people run into exciting purchases with their eyes wide shut – hoping for the best.  Unfortunately, if you’re not going to read and understand the contract, you may encounter severe problems later on.
 
Before even getting to the point of signing an Offer to Purchase, we strongly advise that your finances and pre-approved bond details are organised and ready.  It is essential that your financial position be as stable as possible, should it change after signing the contract and if it was signed in good faith, it will not be a reasonable and legal consideration to renege on the contract.

Once you get to the point where you have checked out the property, or the developer, and are happy to sign an Offer to Purchase you are well on your way to a smooth and beneficial transaction.  A signed offer constitutes a Deed of Sale; it sets the precedent for all further legalities around the ownership of the property so it’s important to know all the details.

Here are the first five considerations to take note of in your Offer to Purchase:

Semigration - what's the deal?

 Whilst the term ‘semigration’ may be relatively new, the process is centuries old.  It refers to the translocation of people from one region to another region within the same country.  Emigration is one of the buzzwords in most social circles in our country as we struggle to regain ground within the context of economic and political turbulence.

However, for those who have chosen to stay in this beautiful country and tap into the potential that it offers, semigration is a very likely possibility. 

Reasons for relocation may include factors of security and crime, traffic and infrastructure or family and friends, but according to a study done by FNB the primary driver for semigration is work and financial opportunities. 

"Approximately 7% of all sellers sell in order to relocate within South Africa."

This means that most semigration is in the direction of the City of Gold – Johannesburg, the number one in business opportunities.  Despite the allure of the ocean, mountains and lifestyle, Cape Town falls far behind as number two, with KZN following closely behind in third place.

With this reality, you may very well find yourself needing to move to an area that you’ve never been to and have no idea what questions to ask and what to consider.  The Rivigan Property Group is the expert in the Krugersdorp/Ruimsig area and is perfectly situated to help you in finding a home to purchase or rent if you are planning to relocate.

We have a strict code of excellence that we adhere to in every deal and are focused on achieving the best outcome for our clients.  Contact us today for more information.

The seller is the seller...

...not the agent.

At Rivigan Property Group, we believe that communicating openly and honestly with our clients is the only way to conduct our business and build long-term relationships.

It is equally important for our clients who are selling property to communicate with us, as effectively and extensively as possible, throughout the sale process so that we can deliver the best service when securing a mutually beneficial deal for both the seller and the buyer.

Although we act as an agent to help and facilitate sales, we are not the actual seller.  The new Consumer Protection Act (CPA) that came into effect in April 2011 has tighter restrictions on real estate sales and calls the seller to higher levels of accountability when engaging in the sale process.

One of our biggest concerns has been in the disclosure of defects.  As an agent, it is impossible for us to know all the defects of a property since we do not live in it and are not privy to all of the plumbing, structural and aesthetic features.  We have seen more than one sale fall through because of defects that were not listed on the defect sheet and encourage our clients to disclose every defect that they are aware of.

We are the experts in selling and want our clients to have the best experience when selling and buying property, and, build into a relationship that will have long-term benefits.

For more information on the revised CPA and how it will affect you, contact us today and we’ll make sure that your questions are answered.  Choose the Rivigan Property Group, it’s the smart choice.

BONDS: How to get one smoothly...

You’ve saved for a deposit, you’ve cut clippings and searched the top websites to know what you want in your dream house.  Now, you need to get a bond.  Statistics show that nearly nine out of ten buyers* finance their homes with a bond, which means that virtually all buyers require home loans.

The good news is that obtaining a loan is not that difficult – but getting the best loan for you, that’s the potentially shaky part.

In recent years, good bonds have been harder to get as banks have tightened the loops that you need to jump through.  But getting a bond doesn’t need to be a difficult process – not only are banks once again offering 100% loans, but we can also guide you with a few tips to being a smooth operator when it comes to applying for a home loan.

Can I afford it?
One of the best reasons for acquiring a pre-approved loan is to find out which market you are able to buy in.  Although house-hunting can be exciting, it’s made far more enjoyable when you know that the house that you like is actually in your price-range and that you have a pre-approved bond, with all credit checks done, waiting for you.

You also need to consider that there are upfront costs of transfer and registration fees, which usually have to be paid outside of the bond.   Monthly repayment affordability is commonly calculated at around 30% of your gross income, but there are further factors that are considered that will determine the size of the bond that will be granted.

SOLD! Now what?

Congratulations! You have a happy buyer, but the process is far from over!  We want you to be fully ready and prepared for the steps that are common to every sale to make sure that you have no surprises.

Selling your house is a stressful process.  We work to reduce that stress by communicating with our clients throughout the deal because we value long-term relationships and want to invest in you, not only now but also for the future.  We strive to communicate as often and openly as possible, without compromise.  Rivigan Property Group have staff employed for the sole purpose of managing all the paperwork and dealing with the legal beagles so that you can relax!  

Once an offer to purchase is signed, the process continues as follows:

• You will receive a copy of the sales agreement from your agent
• Your agent sends another copy and instruction to the conveyance attorney on your behalf
• Your agent assists the buyer in obtaining the necessary finance (if applicable)
• Th bank will inspect the property for valuation
• Once your bond is granted the bank instructs bond attorneys to proceed with registration of the sale
• Your agent will assist with electrical wiring and borer beetle inspections, and certificates where applicable
• The conveyance attorney then requests title deeds and prepares documents for signature by both parties
• Your agent will ensure that the buyer's transfer costs have been placed with the conveyance attorney
• The conveyance attorney applies for cancellation requirements of your existing bond and transfer duty receipt from the deeds office
• The conveyance attorney applies for rate/levy clearance certificates from municipality or managing agents
• The conveyance attorney will request a guarantee from the bond registration attorney
• Finally, the conveyance attorney lodges all necessary documentation with the deeds office
• The sale will be registered into the buyer's name approximately 7 - 10 days after lodgement has taken place
• The conveyance attorney pays out the nett proceeds of sale to you

Phew, a process that is designed to ensure that you receive optimal service and the best deal for your home.  Make the smart choice and do it right the first time with the Rivigan Property Group.