Basic Guidelines for Sellers

Basic Guidelines for Sellers

1. Preparing your property

a) Look at your property from a buyers point of view. Would you have bought it if you were a buyer?Have everything that are broken or not functioning, repaired by reputable workmen.

b) Prepare your house for the new owner as a bride would prepare for his groom, neat, tidy and pretty. A little paint goes a long way.

c) Give special attention to modernizing the kitchen and bathroom as best as your budget will allow.

2. Preparing your paperwork

a) Ensure that all accounts for services, levies, rates and taxes etc. are paid up to date. Calculate averages as a prospective buyer will require the information.

b) Ensure that you are in possession of an occupation certificate and the plans held by your local authority are approved up to date  and correspond to the actual building(s).

c) If you have a bond give notice of intention to settle your bond. If you settle earlier than 90 days after notice, the bank usually levy penalties.

d) If your property has been paid in full, you should have the original title deeds. Your conveyancer will need it.

e) Choose your conveyancer. It is your prerogative to choose a conveyancer at your discretion. An estate agent or the seller may only suggest a conveyancer, but it remains your choice. If you need advice on best qualified to give guidance.

3. Decide on a Selling price

a) If you have a bond, your latest statement will give you an indication of the capital owing. You will need to keep this in mind when deciding on a price.

b) Do some research as to prices fetched for other properties in your area. You could obtain a valuation from a sworn appraiser and/or you could seek guidance from reputable estate agents.

4. Decide on a marketing strategy

a) List the property with one reputable estate agent on a sole mandate basis for a limited period (usually not more than two month.)

b) List the property with several reputable estate agents. Be sure not to list the property with any other agent while one agent still has a sole mandate.

c) Be sure that there is no misunderstanding as regards commission. You will be required to pay commission to the agent who was the cause of the sale. This amount will be paid out of the proceeds of the sale by the Conveyancer on transfer of the property.This percentage, or amount could be negotiated down if agreed between yourself and the estate agent. (Approximately 5% to 7,5% plus VAT).

d) You could also list the property with an auctioneer with a reserve price. The same applies as regards commission.

5. Contract of Sale

a) Property is sold on the basis of a prospective purchaser making a
written offer to the owner who has to accept (or decline) the offer  within  a specified period. If acceptance is signed within the specified period, that document becomes a binding contract of sale.

b) Usually such a contract will include a suspensive condition i.e the
purchaser must be able to provide proof of bond approval, or fund
availability by other means, within a specified period. If the condition is  not fulfilled in time, the contract becomes null and void.

c) It is advisable to stipulate that the purchaser pay a deposit up  front as a show of good faith. Such a deposit should be paid into the trust account of the conveyancer and will be taken into account when payouts are effect on transfer.

d) It is advisable to request your Conveyancer to approve the offer to purchase if drawn up by the estate agent or anyone else before you
sign acceptance.

6. Registration Process

  • Nominated conveyancers receive the sale agreement and call for  deed from current bondholder (bank).
  • Current bondholder advises transferring attorneys of amounts
    required to settle the existing loan and instructs their  own conveyancers to attend the cancellation of existing mortgage bonds.
  • New bondholder (bank) instructs their conveyancers to attend
    to registration of new bond.
  • Conveyancers draw necessary documentation. Purchaser signs two sets of documents (transfer/bond). Seller signs one set of documents (transfer).
  • Purchaser pays deposit and proforma conveyancing costs.
    Guarantees are issued by conveyancers of new bondholders to settle balance outstanding on seller’s loan, and for payment of the balance of available funds to the transferring attorney’s trust account for distribution on registration.
  • Current bondholder signs consent to “cancellation of bond” upon receipt of guarantees.
  • Municipal rates or levies and transfer duty are paid by transferring attorneys. Insurance certite costs and bank initiation fees are paid by bond attorneys.
  • All conveyancers to the transactions (transfer, bond, cancellation) collaborate and lodge documents  simultaneously in the Deeds Office.
  • On registration of transfer, the final accounting are done by transferring attorneys and proceeds of sale paid to seller, loans settled, commissions paid to estate agent, costs paid to electrician and entomologist.