Seller didn’t disclose he had a tenant - is property sale valid?
A Property24 reader asks:
Is an offer to purchase contract still valid if the seller did NOT disclose to the buyer that he had tenants who are residing on the property till December 2017, and paying a rental fee that is far below the bond repayment cost, prior to the contract being signed?
Jaco Rademeyer, from Jaco Rademeyer Estates, responds:
An Offer to Purchase when properly signed is per se a valid contract. In the same breath, the current tenants can stay on for the duration of their rental agreement without an increase in their rental.
What recession means for SA homeowners and buyers
With the economy now officially in a technical recession following the second quarter of negative growth, its time for homeowners and buyers to get serious about "preventing negative equity".
“And the best way to do that is for homeowners to keep putting whatever spare cash they may have, as well as their non-emergency savings, into their home loan accounts, and for those who are buying property now to put down the biggest deposits they possibly can,” says Berry Everitt, CEO of the Chas Everitt International property group.
Everitt says the rate of property price growth has already slowed down significantly in the wake of the ‘junk’ investment ratings South Africa received earlier this year, and the subsequent loss of confidence in the economy on the part of consumers, businesses and investors.
Why a good managing agent is vital for Sectional title property values
When investing in sectional title property, a property category that is increasingly coming to the fore, the importance of a good managing agent attached to the particular scheme should not be underestimated according to Paul French, commercial director for Coastal Property Management Services, who says the introduction of the Sectional Titles Schemes Management Act and the Community Schemes Ombud Service Act in early October last year, has brought added complexity to sectional schemes and shifted the spotlight to the importance of choosing a good managing agent.
“For schemes to continue to attract strong buyer and rental interest, not to mention solid management and maintenance essential to retaining and growing property values, it is vital that property owners and bodies corporate select very carefully when they appoint a managing agent,” says French.
What the Property Practitioners Bill means for the industry
The long-awaited Property Practitioners Bill was gazetted for comment on 31 March 2017.
This proposed new piece of legislation is intended to repeal the aging Estate Agency Affairs Act 112 of 1976 in its entirety. If the Bill passes into law in its current form, it will introduce sweeping changes to the real estate industry.
Some of the proposed changes are positive and others will, inevitably, be contentious. In this article, Kevin Mullins, civil law advocate and founder of the SA Real Estate Academy, will explore some of the most dramatic changes to the regulatory framework currently in existence.
Home loan tips for buying a second property
Whether you are planning to buy a second house to generate passive income or looking for bigger space for your growing family, there are a few factors to consider to avoid turning your good intentions into a costly setback.
Tommy Nel, Head of Credit at FNB Home Loans, says owning a property or two could be a good step to start building wealth for households, however, consumers who are taking this important financial decision should place emphasis on doing proper research to ensure they know what they are getting themselves into.
There are three common scenarios that second-time home buyers often find themselves in: you still owe on your current bond and require a further loan, you are planning to buy on the condition that you first sell your existing house, or your bond is paid up and you are applying for a new home loan.
Nel unpacks some of the important factors that second-time home buyers should consider: