Before you get to post on Facebook about how #blessed you are to have become a property owner, there is a minefield of legal documentation to navigate.

You’d be well advised to enlist the help of a professional along the way, and those in the game will tell you that making an Offer to Purchase isn’t to be taken lightly.

Once that offer is signed by both parties, it’s a legally binding document, and agents should be sure to stress that fact when brokering a deal between the buyer and the seller.

Here’s BusinessTech with more:

Buyers are often well aware of the legal implications of signing the Offer to Purchase, but sometimes try to get out of the agreement due to a number of factors, including buyer’s remorse, interest in a different property or a change in their financial position, the estate agent said.

“If the buyer defaults, the seller can take legal action to ensure that the conditions of the agreement are upheld,” said [Gerhard van der Linde, Seeff’s MD in Pretoria East].

Take the buyer’s remorse that comes with a poorly thought-out purchase from OneDayOnly, multiply it by thousands, and you might be in the same ballpark.

Because of the legally binding ramifications, the agent is required to explain all the terms of the Offer to Purchase to both the buyer and the seller, and the following details should be included in the contract:

• The exact purchase price and any considerations given by the purchaser to the seller.
• Any conditions of sale, for example that the purchase price is dependent on the buyer getting a bond or selling a property.
• That the deposit will be held in a trust pending the completion of the sale and that interest will accrue to the buyer.
• That all fixtures and fittings that are part of the sales agreement are clearly stipulated as this is often an area of contention. By adequately specifying these items, conflicts can be avoided. Do not assume that anything is included, if there is any uncertainty, choose to specify this in the agreement.
• That the owner declares that to the best of his knowledge, the house is structurally sound. Although sellers often try to protect themselves from any claims by a “voetstoots” or “as is” clause, this will only protect them from claims where they were unaware of such defects. If the seller was aware of defects, hid them or failed to disclose them, this protection falls away.
• If the seller is in possession of approved plans, there should be an undertaking to provide a copy of these plans.
• If the home was recently constructed, a copy of the NHBRC certificate as well as occupation certificate may be need to be provided.
• Compliance in respect of electricity and electric fencing must be adhered to, and the agreement of sale should address these issues.

In short, get everything down on paper, because the days of assuming the best in people are behind us. Throw in an agent hungry for some commission, and the need to do everything by the book only increases.

Once it’s all done and dusted, and the picture is on social media as proof of the commencement of adulthood, you can move on to turning that house into a home.

[source:businesstech]