Do You Know Your Rights and Responsibilities as the Seller?
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Are you considering selling your property? At Seeff Properties we know this can be a rather daunting task as one of the most significant financial transactions you may be faced with. Therefore, we asked local trusted conveyancing attorneys at KVV Du Plooy Inc to shed some light on your rights and responsibilities as the seller.
First of all, the Seller needs to know that he/she/it is dominus litis, i.e. the person in control of the transaction. This means that you have the right to choose if you wish to sell your property privately or if you would like to make use of a real estate agent. It also means you have the right to choose your conveyancer and choose the timeline of the transaction.
Why Would You Choose an Agent?
Most Sellers are apprehensive about the cost and query the benefits of appointing an agent. These days (most) Property Practitioners are trained as professionals in their field of practice. A reputable agency can provide many advantages.
Not only does the Property Practitioner already have a database of prospective buyers; but they will comply with the Property Practitioners Act, the Consumer Protection Act and various other legislation. There are a multitude of requirements which most Sellers are not necessarily aware of and Selling your property can become a minefield to battle through on your own.
Conducting a sale privately, you'll need a professional to draw up your sales contract at a fee, and need to arrange your own COCs (Certificate of Compliance) for electrical, gas, beetle and, in some municipalities, also plumbing. These are only a few of the obstacles you will encounter, not taking into consideration the legal nitty gritty.
An agency is well-equipped with marketing capabilities and expertise; and has their own sales contracts that have been compiled and updated continually to include the latest legal requirements. They prescribe to POPIA and CPA regulations which provide security and protect both buyer and seller. They also have a preferred list of COC providers so you don't need to source these.
If you choose to make use of an expert; equipped with industry knowledge, there are a few further considerations:
Choosing the Type of Mandate
Whether you choose a sole mandate, joint mandate or open mandate; any agency that markets your property needs to have a signed mandate before they can start marketing your property.
The PPRA's Code of Conduct clearly indicates that:
No estate agent shall:
3.1 offer ... any immovable property for sale or to let or negotiate in connection therewith ... unless he has been given a mandate to do so by the seller or lessor of the property, or his duly authorised agent.
The mandate is a binding agreement between the seller and the agent, agreeing to:
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the type of mandate
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the timeframe in which the property will be marketed solely by the agent(s) of your choosing, and
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the commission they will be paid for the successful sale of the property.
The estate agent needs to explain the terms and conditions of this agreement to you, the seller.
Importantly, the agent(s) mandated to sell your property must be registered with the Property Practitioners Regulatory Authority and hold a valid FFC (Fidelity Fund Certificate). The FFC is the Seller's "insurance policy" should anything go wrong with the transaction and the Seller is out of pocket. Only Property Practitioners with a valid FFC, are eligible to market your property.
The Marketing Process
Once you have agreed upon a mandate with a Property Practitioner, there are a few things that you as the Seller can do to ensure your property is sold promptly and for the best possible price.
Throughout the marketing process, it is essential to make sure your property is tidy and clean for photographing, show days and viewings, in order to make the home more appealing to prospective buyers.
You are required to compile a list of defects (the Property Condition Report), even those that are potential problems, regardless of whether the property is sold as is, i.e. voetstoots. You should also compile a list of what will stay (what is included in the purchase) and what will be removed from the property when you move. A property practitioner can guide you through this.
The Offer to Purchase
On receiving an offer on your property, you need to go through the Offer to Purchase thoroughly - this is where a practitioner can also offer valuable insight - and:
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omit what you do not agree with,
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omit open spaces,
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and make additions where necessary.
All changes to the sales agreement need to be considered by the buyer and initialled by both parties on agreement thereof. If there are no changes, the seller can simply sign the agreement or reject it if they do not accept the offer.
It seems like a lot of work, but the right agent coupled with the right conveyancing attorney can ensure a smooth property transaction. By entrusting Seeff Hermanus and KVV Du Plooy Inc with your property matters, you can focus on other important aspects of your life with confidence, knowing that your transaction is in capable hands.
Author: Ruché Ten Have
