Selling Your House? Key Info for SA Sellers

Selling Your House in South Africa: Essential Information for Sellers

Selling a property can be a complex and daunting process, especially for first-time sellers. This blog post serves as a comprehensive guide to navigating the maze of selling your house in South Africa. From understanding the different types of mandates to demystifying the legal aspects and conveyancing procedures, we'll equip you with the knowledge and confidence to sell your property successfully.

Choosing the Right Mandate

When selling your property, one of the first decisions you'll encounter is selecting the type of mandate:

• Sole Mandate: A sole mandate grants exclusive rights to a single estate agent to market and sell your property. This means you cannot engage another estate agent during the mandate period, typically three months.
• Open Mandate: An open mandate allows you to appoint multiple estate agencies to market your property concurrently. This gives you wider exposure but can also lead to confusion and potential disputes over commission claims.

Understanding the Offer to Purchase

An offer to purchase (OTP) is a legally binding document outlining the terms and conditions of the sale. Once you, the seller, accept a buyer's offer, both parties are obligated to fulfill the agreement. It's crucial to review and understand the OTP thoroughly before accepting it.

Selling "Voetstoots"

Selling a property "voetstoots" means selling it "as is," with all its existing defects. While this protects you from liability for disclosed flaws, it's crucial to be transparent and not conceal any known defects, as this could lead to legal disputes.

The Role of the Conveyancer

A conveyancer is a specialized attorney who handles the legal transfer of property ownership. They prepare the necessary documents, conduct title deed searches, ensure compliance with legal requirements, and ultimately register the transfer at the Deeds Office.

It's important to note that the seller has the right to appoint the conveyancer, even though the buyer typically pays the conveyancing fees. This ensures that the process is driven by the party with the most to lose from delays.

The Conveyancing Process

The conveyancing process involves several steps, from receiving the deed of sale to the final registration of the transfer. These steps include:

1. Receipt of Deed of Sale: The conveyancer acknowledges receipt, conducts a title deed search, and applies for rates figures and valuation certificates.
2. Fulfillment of Suspensive Conditions: The conveyancer follows up on any conditions in the OTP, such as bond approval or the sale of the buyer's property.
3. Signature of Documents and Payment of Costs: Both parties sign the transfer documents, and the buyer pays the associated costs.
4. Compliance Certificates: The seller obtains the necessary compliance certificates, such as electrical, plumbing, and beetle certificates.
5. Guarantees and FICA: The conveyancer ensures satisfactory guarantees for the purchase price and checks FICA compliance.
6. Lodgement of Deeds at Deeds Office: The conveyancer lodges the deeds at the Deeds Office for examination and registration.
7. Registration: The deeds are registered, officially transferring ownership to the buyer.
8. Delivery of Deeds: The Deeds Office delivers the original title deed and mortgage bond to the conveyancer, who then distributes them accordingly.

The Registration Process

The registration process is the culmination of the conveyancing process. Here's a simplified breakdown:

• Examination: The Deeds Office examines the documents for accuracy and compliance with legal requirements.
• Registration: If the examination is successful, the Deeds Office registers the transfer of ownership from the seller to the buyer. This involves updating the title deed and reflecting the new owner's details.
• Delivery: The registered title deed is then delivered to the buyer (or their bank if a bond is involved), officially completing the transfer of ownership.

The Bond Registration Process

If the buyer requires a bond, a separate bond registration process runs concurrently with the transfer process. This involves the bank's attorneys preparing and registering the bond documents, ensuring the bank's financial interest in the property.

How Hoom Can Help

By giving sellers multiple estate agents options and offers, Hoom allows for comparison and cash-back rewards, making the selling experience more transparent and rewarding.

Ready to sell your property with ease and confidence? Hoom lets property sellers find and compare estate agents. Sellers earn cash-back when they sell. Estate agents bid for sellers' listings.