- Delays – various factors can cause delays e.g. the municipality requiring additional documentation/funds when rates clearance figures are applied for, either party delaying payment of the required funds. Lost or destroyed title deeds will also cause delays, as well as added costs. A written application and affidavit is required to be submitted to the Registrar of Deeds, stating that the title deeds have been lost or destroyed, and pursuant to this, an advertisement must be placed in a local newspaper that it is the advertiser’s intention to apply for a certified copy of the title deed. Closure of the Deeds Office for deep cleaning as a result of the Covid-19 pandemic will also cause delays.
- Title deeds – onerous conditions – the conditions of title and any servitudes over a property are reflected in title deeds. For e.g any form of servitude, or restrictive condition regarding usage. It is critical to inspect the title deeds to avoid any dispute at a later stage.
- Building plans - The seller must ensure that all the buildings and structures on the property are approved by the relevant local authority before he places his home on the market for sale. When a new residential property is still under construction as at the date that the deed of sale is signed, draft specifications with the builder for the completion of the house should be attached to the sale agreement. Insert a special clause which states that the seller undertakes to complete the dwelling in accordance with the specification and local building by-laws, and that the seller undertakes to complete the dwelling for occupation on or before a specified date. In addition, ensure that the builder is registered with the National Home Builder Registration Council (NHBRC). A clause warranting that plans have been approved by the local authority should be included.
- Beacons – if the buyer is not happy with the various beacons defining the boundaries of the property, insert a clause stating that the seller is responsible for resurvey, within a stipulated period.
- Fixtures and fittings – normally if of a permanent nature, these will remain on the property, and form part of the purchase price. Any items in doubt, such as a TV aerial, satellite dish, jet master fireplace, extractor fan/s, burglar bars, alarm systems, pot plants, jojo tank/s, a chandelier, garden wendy house and pool cleaning equipment – should be stated in the agreement of sale as a fixture which should remain and will be in working condition, and fully paid for, on date of registration. For example, should the seller wish to remove any item, such as a satellite dish, he should clearly disclose this fact to both the estate agent and the purchaser to avoid any perception that the dish would remain. The agreement should specifically regulate that this item is excluded.
PITFALLS & RECOMMENDATIONS
09/27/2022