Hi there, Randburg property owners. If you had visions of a quick Randburg property sale and your sale has been anything but that, let’s dig a little deeper into why that could be. The Randburg property market is still a little muted as we are celebrating the upcoming Spring day on 1st September. The market will warm up with the weather; it always does. But let’s look at what happens after the OTP has been signed and accepted and consider why a property sale could still fail. A property transaction can be tricky, and there are certainly stumbling blocks that can derail a sale. But with all we know and are about to share, there are some good tips to consider as well. It’s not all bad news – promise.
The Buyer’s Bond Application is Declined
Obvious financial hurdles stand as one of the main reasons why a property transaction could fail. Let’s start with the good news, though. Interest rates have dropped a few times, so the market is a little better in terms of affordability. Last year this time, things were rough. And the SA Banks have really stepped up to win and gain market share, so the new product innovation to win market share with great news offerings is definitely on the rise. But it is essential that a probing discussion gets underway before a viewing to make sure that the buyer who views does, in fact, qualify for your home. This also avoids cheeky offers in a buyer’s market. You see, we have seen a few movies and have lived through some tough lessons. There is just nothing worse than selling a Randburg property and then the transaction falls flat because our buyer bought something on HP, and the bond gets declined. Trust me, it hurts. So, we coach and we chat with buyers and we certainly make sure that we play our part to make sure a buyer is pre-approved by a reputable bond originator.
The Suspensive Conditions Are Just Not Met
So, let’s start with “what is a suspensive condition”? This is a particular requirement that is outlined in the Offer to Purchase or OTP that needs to be fulfilled within a specified timeframe for the sales transaction to proceed. These conditions are typically included in a sales agreement to safeguard the interests of you, our seller, and the buyer. If these conditions are not met within the specified timeframe, the entire agreement becomes null and void. Ouch, this also hurts. Also, neither party can claim contractual damages for the other party’s failure to meet a suspensive condition. The two most common suspensive conditions are the buyer’s bond approval and the sale of the buyer’s existing home, although other conditions may be included by either buyer or seller. Only when all the specified conditions are fulfilled is the agreement deemed to be in full force and effect. Cornerstone Homes has seen a great number of stories unfold well, but trust me, there is the odd story that just gets stuck, and we have to start all over again. Honestly, we push from every angle, and we will go above and beyond to make sure that the suspensive conditions are realistic and that they are doable.
Inspection and Compliance Hurdles
Before the property can be transferred into the new homeowner’s name, it is crucial that, as the seller, you secure the required certificates of compliance or COCs that underscore the property’s safety and structural integrity. Mandated by South African law, these compliance certificates include electrical, gas, and electric fence installations. In some provinces and municipalities, additional COCs form part of the standard sales agreement, even if they are no longer legally obligatory.
Furthermore, a bank will require these compliance certificates prior to issuing a home loan. This ensures the bonded property adheres to safety regulations. If the seller fails to produce these certificates, a buyer could actually lose their ability to secure finance. Should the inspection uncover non-compliance issues, the seller must rectify the issues at his own expense before the Offer to Purchase expires, and failure to do so could actually jeopardise a sale.
To try and prevent a sale falling through because of inspection and compliance issues, both parties (Seller and the Buyer) should ensure that the required COCs are in order. With these COCs in hand, a buyer can provide their household insurance providers with evidence that the purchased property aligns with legal safety standards. This also gives a buyer the reassurance that their new property is not only safe, but it also gives them added peace of mind that they have bought the home they deserve.
With this in mind, as a seller and as a buyer, you can navigate some of the more challenging parts of a Randburg property sale that are often not covered in great detail. Selling a property with confidence and buying a property with confidence is what Cornerstone Homes is all about.
Missing Building Plans For Freestanding Homes
This is also a sore point. If you own a freestanding home and your buyer places a condition in the offer to purchase that they want updated building plans, this is an obvious hurdle you really want to clear as fast as possible. Building plans can be sourced from town planning in JHB CBD at a cost of under R200. Not a very common stumbling block but a stumbling block that can delay and possibly cause a property sale to fail.
Need To Get In Touch
As a Randburg property owner, if it’s time to sell your home, call Sandy from Sell with Sandy and the lead agent for Cornerstone Homes on 083 550 1220. We would love to help you avoid some of these often-muted challenges. We have the experience and the sales volumes behind a comment that claims to really understand these challenges and how to avoid a failed property transaction. Please feel free to visit our website – click here.
