Determining the respective duties of the buyers and the estate agent
Category General
Your Estate Agent’s Duties
All registered estate agents are obliged to comply with the Code of Conduct for Estate Agents issued by the Estate Agency Affairs Board. Your agent may only present written offers to purchase to your seller and must ensure that the proposed purchase price is reasonable. It is the agent’s duty to sincerely advise you of the current market value of the property and to point out all factors which might affect your offer (such as the condition of the property, quality of its fittings, known defects and any special features).
Your Seller’s Obligations
Your seller has a duty to disclose anyadverse factors which might affect your sale, such as any servitudes against the property, hidden defects of which he is aware which you cannot discern on an inspection of the property (these are known as latent defects), and any extensions done for which no plans have been passed.
Your Personal Obligations
Being a “Qualified” Buyer
Your agent has a duty to the seller to ensure that you are what is known in law as a willing and able purchaser. He/she will enquire if you can afford to pay the relevant transfer and bond costs. Advise your agent of any judgements taken at any time against you in any court and if you are aware of any adverse credit-rating against you.
Occupation of the Property
You will not be allowed to obtain occupation of the property until all suspensive conditions have been fulfilled. You may not make any alterations or improvements to the property prior to registration.
Your Sale Agreement
The Offer to Purchase
Your agent is required to go through the clauses of the contract and explain them to you and also to furnish you with a copy once it has been signed by both parties. You cannot repudiate the contract once it has been signed without becoming liable for agents commission and any damages the seller may have suffered.
Electrical Compliance Certificate
Your seller will be obliged in terms of your contract to provide you an Electrical Compliance Certificate prior to registration of transfer. The certificate only has to confirm that the system is safe - the seller is not obliged to repair other latent defects in the system of which he is not aware.
Fixtures and Defects
Fixtures and Fittings
The seller has to pass occupation of the property to you inclusive of all fixtures and fittings. This includes all light fittings, attachments of a permanent nature, loose objects which form part of a fitted unit (e.g.. keys to doors, curtain rails, bar stools), alarm systems, and the like.
Latent and Patent Defects
Your contract will contain a voetstoots clause absolving your seller from all liability for latent and patent defects. This does not give him the right, however, to conceal or hide defects he is aware of. He remains liable to you for all undisclosed latentdefects and you have a right to take action against him for the cost of repairs in such cases.
In terms of your voetstoots clause you buy the property as is – defects and all. By law you have the right to sue the seller for damages if he should refuse to repair the undisclosed defects. The seller will never be liable to you for patent defects which are faults that can easily be discovered on a normal inspection of the property.
Transfer of the Property
The signed sale agreement will be sent to the attorneys appointed to transfer the property. It is your express duty to sign all transfer and bond papers and to pay all required deposits and costs immediately when called on to do so. Any default or unreasonable delay on your part could lead to action being taken against you once again rendering you liable for agent’s commission and seller’s damages.
Author: CLE Properties
