Firstly, the Property Condition Report is required by law. Have a look at what the PPRA considers as a mandatory step and presented as Section 67 you will see it’s a critical legal requirement for a successful property transfer.
What if you don’t complete the Property Condition Report?
Well according to the law, 1 the Property Condition Report should be concluded at the time of concluding a binding property mandate and 2 if the Property Condition Report is not included as part of the OTP and the property transfer process, then the property is deemed to have been sold with no signed (signed by all parties) Property Condition Report then the property is deemed to have NO deficiencies and defects. A seasoned property professional would know this. And the liabilities can be costly if this step is missed or omitted from the process.
The Property Condition Report, An Integral Step To Your OTP
This Property Condition Report must first be signed by the Seller and should be an accurate reflection and declaration of the property’s current condition at the time the property went onto the market. All the little imperfections should be listed clearly. The Property Condition Report will also be signed by the Buyer when an offer is made. This is important because the Buyer, by law, needs a total view of what needs to be repaired, and maintained and what imperfections need to be repaired if sold Voetstoets as we call it. If you need help understanding the ins and outs call Sandy on 083 550 1220.
This image (above) may be a bit small but it outlines the new ‘unbranded’ format that the PPRA requires as far as the Property Condition Report is concerned. The new format can be downloaded from the PPRA and it is absolutely imperative that it be completed and submitted together with the OTP.
Buyer Pro Tip
PS: A tip for Buyers – the first question you should be asking is “Can I see the Property Condition Report”.
Failure to Comply Can And Will Result In Fines Of Up to R15,000
Well, failure to comply leaves a Seller with major liabilities potentially. An Estate Agent that submits an offer without a Property Condition Report and where there is a come-back could in fact be liable for a fine of up to R15,000. Record keeping by the estate agent for the property transfer process is also required to be kept safe and accessible for auditing purposes for a period of 5 years.
Need To Get Started With Your Randburg Property Sale?
If it is time and you do have a few imperfections you do not want to invest in to repair or replace. That’s also fine. The Property Condition Report will state just that. At the end of the day, it is the Buyer’s choice to buy your home, “Warts and All”. The Offer to Purchase (OTP) or the Agreement of Sale will clearly document the current condition of the property. Need to arrange a Randburg property valuation?
Need To Get In Touch?
Call Sandy Graham from Cornerstone Homes on 083 550 1220. Feel free to check out our website.
Remember You Net More With Cornerstone Homes When You Sell
Sandy and Nicole from Cornerstone Homes can assure and guarantee you that when you sell, you WILL net more with Cornerstone Homes. Call Sandy to find out more on 083 550 1220.
