The ups and downs of property co-ownership

The ups and downs of property co-ownership: Property ownership has always been a costly endeavour, and in recent years the age of first-time homeowners has been steadily increasing as younger professionals

Finding the Best Property in the Pretoria Moot Area

Finding the Best Property in the Pretoria Moot Area: When it comes to buying or selling property, estate agents play a crucial role in the process. However, not all estate agents are created equal.

Keller Williams – Team Diamond League – Finding the Best Property in the Pretoria Moot Area

When it comes to buying or selling property, estate agents play a crucial role in the process. However, not all estate agents are created equal. Commission is a sensitive topic in the real estate industry, as estate agents don’t have a fixed income and rely solely on commission. In this article, we will delve into the world of estate agents’ commission and what you should know when it comes to property sales and rentals.

1. What is an estate agent’s sales commission and when is it payable?

Estate agents’ commission is negotiable and not prescribed by the (PPRA)Property Practitioners Regulatory Authority. Commission is earned once all conditions on the sales contract have been met. The conveyancer acts as the gatekeeper and will only pay out the commission to the estate agent after the property has been registered.

2. What is the difference between sales and rental commission?

Rental commission is a monthly fee, usually between 10-12% + VAT of the monthly rental amount. Some estate agents also work for a placement fee, which is equal to the first month’s rental income. Sales commission, on the other hand, is a one-time fee paid on property registration.

3. What is the average or going rate for estate agents’ commission?

Sellers can expect to pay between 5% and 7.5% + VAT of the selling price for commission. The commission rate varies between estate agencies, and the level of service offered also affects the commission rate. Estate agencies with lower commission rates (3-4%) may not provide as extensive a marketing plan as those with higher commission rates (5-7.5%).

4. What should sellers know about estate agents’ commission when selling property?

Sellers should ensure they have a comprehensive marketing plan in place before contracting with an estate agent. This plan should include details on advertising, property portals, and other marketing efforts. The commission percentage should also be agreed upon and clearly outlined in the plan. When working with Keller Williams – Team Diamond League in the Pretoria Moot area, you can rest assured that you will receive a comprehensive marketing plan and the best possible commission rate.

Conclusion

Choosing the right estate agent is crucial when buying or selling property. Commission is an important aspect to consider, but it shouldn’t be the only factor. Keller Williams – Team Diamond League, a leading estate agency in the Pretoria Moot area, offers the best combination of commission and marketing services to ensure your property transaction is a success.

Advantage and Dis-Advantage of Co-Ownership of Property

Property ownership is no small feat. It is one of the most reliable forms of investment and one of the biggest items that most people have on their financial “to-do” lists. Unfortunately, it is not always an easily achievable goal. Property ownership has always been a costly endeavour, and in recent years the age of first-time homeowners has been steadily increasing as younger professionals find their financial footing later than in previous years, making co-ownership a valuable option that will help property buyers side-step the financial burden of buying a new property. But how beneficial is this path really?

Co-ownership of property is when more than one party jointly own a single property. In essence, the owners share legal ownership without having to divide the property into physical portions for their exclusive use. It is thus commonly referred to as co-ownership in undivided shares.

It is possible to agree that owners acquire the property in different shares; for instance, one person owns 70% and the other 30% of the property. The different shares can then also be recorded and registered in the title deed of the property at the Deeds Office.

On paper, it’s a great idea. For starters, the burden of bond repayments and maintenance costs are lessened. However, there can be problems and although not every friendship or relationship is destined to disintegrate, there does often come a time when one of the parties involved wants to sell up and move on to bigger and better things.

If ownership is given to one or more purchasers, without stipulating in what shares they acquire the property, it is legally presumed that they acquired the property in equal shares.

The risks, the benefits and the obligations that flow from the property are shared in proportion to each person’s share of ownership in the property. For instance, one of the co-owners fails to contribute his share of the finances as initially agreed, resulting in creditors such as the bank or Body Corporate taking action to recover the shortfall.

If two people own property together in undivided shares, it is advisable to enter into an agreement that will regulate their rights and obligations if they should decide to go their own separate ways.

The practical difficulties that flow from the rights and duties of co-ownership are captured by the expression communio est mater rixarum, or “co-ownership is the mother of disputes”. It is therefore important that certain remedies be made available for when the agreement entered into by co-owners does not help them solve arising disputes.

The co-ownership agreement should address the following issues:

• In what proportion will the property be shared?
• Does anyone have sole right to occupy the property?
• Who will contribute initial payments to acquire the property?
• Who will contribute what amounts to the ongoing future costs and finances?
• How will the profits or losses be split, should the property (or a share thereof) be sold?
• The sale of one party’s share must be restricted or regulated.
• The right to draw funds out of the access bond must be regulated.
• A breakdown of the relationship between the parties.
• What happens in the occurrence of death or incapacity of one of the parties?
• Dispute resolution options to be relied on before issuing summons.
• The guidelines for the termination of the agreement.

Co-ownership of property can be a wonderful way in which to realise your dreams of homeownership, even when your financial situation does not yet fully allow it. But it is vital that you obtain the necessary guidance and advice when entering into such a relationship to ensure a long-term, mutually beneficial experience.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice.

 Quoted from the source: https://jjrinc.co.za/2022/01/the-ups-and-downs-of-property-co-ownership/

Assess your credit and get pre-approval for a home loan

Buying a property is a significant investment and requires careful planning and research. To ensure a quick and smooth property transfer, there are certain steps you can take. Keller Williams – Team Diamond League, a leading provider of real estate services in the Pretoria Moot area, suggests the following:

Steps for Quick Property Transfer : Keller Williams – Team Diamond League – Estate Agency in South Africa

Step 1 – Determine Your Affordability: Start by figuring out your budget and how much you can afford. A financial consultant can assist you with this.

Step 2 – Save for the Deposit: Once you have a clear budget, start saving for the deposit. The more you save, the lower your bond amount will be.

Step 3 – Get Pre-Approval: Assess your credit and get pre-approval for a home loan. This will help you plan more efficiently and avoid any surprises.

Step 4 – Keep Documentation Ready: Gather the necessary documents such as ID, marriage certificate & ante nuptial contract ahead of time to save time when you find your dream home.

Step 5 – Work with a Real Estate Agent: Partner with Keller Williams – Team Diamond League, a trusted real estate agent, to help you navigate the real estate market and processes.

Step 6 – Find Your Ideal Home: With the previous steps in place, finding your ideal home will be a stress-free process.

By following these steps, you can limit the time your property transfer takes and ensure a smooth and efficient process. Keller Williams – Team Diamond League can help guide you through the property buying process in the Pretoria Moot area.

The Property Seller can be held liable if the latent defect existed

The Purchaser signs an agreement of sale with the Seller. The property is transferred into the Purchaser’s name. A month later, there were heavy rainfalls and the roof leaks. Is the Property Seller liable to repair the roof or the Purchaser, as the new owner?

To understand which party is liable, one must appreciate the difference between latent and patent defects. A latent defect is not visible or can be discovered when inspecting the property. This type of defect impairs the use and enjoyment of the property. Typical examples of latent defects are leaking roofs, dampness and/or structural defects in the foundation, to name but a few.

On the other hand, a patent defect is visible when inspecting the property. Hence, the parties can discuss the options of who will attend to the repairs. The same may be negotiated between the parties, be it the Property Seller who repairs the patent defect or reduces the purchase price for the Purchaser to repair.

Thus, it is the latent defect matter that triggers the dispute between the parties should it arise. The common law position is as follows:

• If the Seller gives the purchaser an express written warranty that the property is sold free from any defects, and after the sale is concluded, the purchaser confirms that there is a defect, the Property Seller can be held liable for the repairs. For example, if the Seller declared in the agreement of sale that the roof does not leak and after the sale the Purchaser experiences leaks in the roof, the Seller is held liable as there has been a breach of contract.
• If the Seller misrepresents to the Purchaser regarding the property’s condition, the Seller can be held liable. For example, if the Seller is aware that the roof leaks and does not declare the same to the Purchaser, the Seller can be held liable, and the sale can be set aside, or the Purchaser may proceed with the sale and claim a reduction in the price for the damages.

One may ask, but what if the Seller did not know about the latent defect? The answer is yes, the Property Seller can be held liable if the latent defect existed when the sale was concluded between the parties.

But why is there a voetstoots clause in the sale agreement, which is supposed to protect the Seller by informing the Purchaser that he/she/they are purchasing the property as-is (voetstoots)? The voetstoots clause does not protect the Seller and does not exclude the Seller’s liability if the misrepresentation is proven; hence if the Seller was aware of the latent defect and did not disclose same to the Purchaser, the Seller can be held liable.

The Consumer Protection Act, which came into effect on the 1st of April 2011, states the Purchaser has to be informed of all details regarding the property that he/she/they are purchasing. Once the Seller expressly states what condition the property is in and the Purchaser expressly accepts the current state of condition of the property before purchasing the property, the implied warranty of the property’s condition falls away. The effect of the CPA has been that the voetstoots clause does little to protect the Seller when it comes to defects; hence the Seller is urged to declare all defects of the property to the Purchaser before concluding a sale agreement.

Reference List:

• Practitioners guide conveyancing & notarial practice by Allen West
• Consumer protection act 68 of 2008

Estate agent representing the property seller holds significance

When diving into the realm of real estate and property acquisitions, discerning the nuances between a conditional and a clean offer can be pivotal. A clean offer is the beacon of attraction for property sellers, carrying minimal pre-conditions, showcasing your unwavering commitment. Conversely, a conditional offer comes with prerequisites like property financing or property inspections, introducing uncertainty into the equation.

To craft an irresistible offer that beckons property sellers, meticulous preparation is paramount. Ensure your financial house is in order, cementing your affordability and creditworthiness. Anticipaate any potential curveballs that may arise during the credit evaluation process. Additionally, foster harmony with the property seller on all fronts, including price negotiations, and be open to concessions that sweeten the deal.

Connecting with the estate agent representing the property seller holds significance. Uncover the seller’s unique circumstances – their desired closing timeline, and whether they await another property transaction. Tailoring your offer to align with their needs elevates your chances of acceptance.

In essence, refrain from burdening the sale with unnecessary conditions, as they can deter sellers. While addressing structural issues might seem vital, assess their criticality in achieving overall success. A clean offer streamlines negotiations, curbing the risk of losing the property to competitors.

In the present real estate landscape, sellers in ‘greenbelt’ areas outside major cities wield substantial influence, fueled by the remote work trend. Hence, presenting an alluring, clean offer becomes imperative to thrive in this competitive arena. Mastering the art of distinguishing between conditional and clean offers, along with adopting strategies to craft pristine proposals, significantly enhances your prospects when venturing into the Keller Williams property market.

Rules to Know Before Buying Property in a Complex in South Africa

 Important Rules to Know Before Buying Property in a Complex or Estate in South Africa

• The popularity of gated communities and estates has increased in South Africa due to the added security they provide to homeowners.
• A recent poll showed that out of 4,000 respondents, 1,500 live in a gated community, while 2,500 do not.
• The shift to remote working from home has further increased demand for homes in these communities.
• Property developers have responded to recent social and lifestyle changes by creating new estates and offering a wider range of property types.
• Prospective buyers need to understand the major differences between buying a home in a suburb and a home in a gated estate run by a Homeowners’ Association (HOA).
• Levies and rules differ for every estate and buyers need to abide by the HOA’s constitution, rules, and decisions.
• Prospective buyers should ask for the following documents and read them before making an offer to purchase:

• • The MOI or constitution of the HOA
  • The appearance and conduct rules of the estate
  • A list of the current HOA directors and their roles
  • Minutes of HOA meetings for the past year
  • The current HOA budget, year-to-date financial report, and levy collection record
  • The current HOA insurance policy

• Property buyers should find out if the HOA has a reserve fund for long-term planned maintenance and emergencies.
• If buying in a new estate, check the HOA’s architectural guidelines and building and appearance rules.
• Some estates have minimum and maximum house size allowances and require homes to be built in a particular architectural style.
• Property buyers in a new estate should establish who is responsible for security and repairing any damage to services during the construction phase.

Steps for Quick Property Transfer

Steps for Quick Property Transfer: Buying a property is a significant investment and requires careful planning and research

Selling a property with defects: What you need to know

Selling a property with defects: What you need to know: Is the Property Seller liable to repair the roof or the Purchaser, as the new owner?

Real Estate Success with Keller Williams: Buying Strategies

Real Estate Success with Keller Williams: Buying Strategies: Conversely, a conditional offer comes with prerequisites like property financing or property inspections, introducing uncertainty into the equation.

1 new message

Important Rules to Know Before Buying Property in a Complex or Estate in South Africa: The popularity of gated communities and estates has increased in South Africa due to the added security they provide to homeowners.