Are you selling your property? Tips for Sellers
Some tips for sellers:
- It is always a good idea to read your Title Deed, but this is especially important if you are selling because sometimes the title or ownership comes with conditions that you may have forgotten about, such as:
- a usufruct;
- other Will conditions such as exclusion from a marriage in community of property;
- the property is transferred together with an exclusive use area (sectional titles), and conditions relating to this.
- In the above instances, if these conditions are not disclosed to the buyer before signing the Offer to Purchase Agreement (OTP), you will probably have to carry the costs of the Notarial Cession or Notarial Deed that may be required to remove or transfer the condition. If these are disclosed and negotiated upfront, then it can be a cost accepted by the buyer as part of his/her transfer costs of the property.
- If you are selling a Sectional Title property, it is good to know how many and what sections you own as per your Title Deed, and whether or not exclusive use areas are included so that you can communicate this to the property agent and/or the potential buyer. Full disclosure is always important.
- Exercise your right to nominate (and/or agree on a suitable choice with your buyer) a trusted transfer/property lawyer to execute the transfer on your behalf.
- If you still owe towards a bond on the property that you want to sell, contact the bank (or have your property lawyer contact the bank) and find out your current estimated bond cancellations figures. Sellers are sometimes surprised by the amount still owing as well as the other costs that they will incur, such as rates clearance or Home Owners Association (HOA) clearance and consent figures. Don’t estimate, rather do the due diligence of finding out so that you can make a calculated decision before signing the OTP.
- Don’t be pressurised into accepting an offer. Instead, negotiate in increments or wait for the offer that suits your reasonable expectations.
- If you have been paying towards HOA levies, then put what you have already paid to good use before marketing the property, to tend to the necessary repairs and maintenance on your home (depending of course on what the levies cover). Then you will be able to present it in its best possible condition, get the best price for it, and give your buyer better value.
- In terms of Capital Gains Tax, remember that a Taxpayer may qualify (there are qualifying criteria) for the R2 Million Rand exclusion on the sale of their primary residence.
I hope you have found this useful. Look out for the next article will contain tips for buyers.