Estate agents are paid a commission to market the seller's property |
FACT –
Estate agents are paid a commission (as high as 7.5%) by the
seller to market and obtain the best price, terms and conditions
on their behalf.
FACT –
Estate agents use their own offer to purchase agreements.
These agreements are presented to buyers by the estate agent
and completed more often than not without the purchaser benefiting
from any legal advice. THIS CAN LEAD TO OMISSIONS OF CLAUSES
THAT SHOULD BE ENTERED AND THE INCORRECT UNDERSTANDING OF
CLAUSES INSERTED.
FACT –
Estate agents often include in this offer to purchase a condition
that they are appointed as the sole agent for the purpose
of obtaining a bond (mortgage). It has to be considered that
the reason they do this is may be due to ‘agreements’
they have in place with bond originators which they receive
a commission from. Often the estate agent holds no formal
qualification that enables financial advice to be given.
FACT –
An offer to purchase is a legally binding contract. Once accepted
by the seller and any suspensive conditions are met, you are
committed to the purchase. Often this purchase involves spending
millions of rands. WHEN BUYING A CAR MANY OF US GET THE ENGINE
TESTED BEFORE COMMITTING, WHY THEREFORE SPEND MILLIONS OF
RANDS WITHOUT THE AID OF PROFESSIONAL ADVICE
FACT –
The only guarantees that are issued with a property when purchased
concern beetle and electrical issues. Very often the estate
agent (who acts for the seller) appoints the electrical engineer
and beetle specialist inspecting the house. Often these certificates
are not even seen by the purchaser prior to transfer and possession.
FACT – The seller appoints a solicitor,
whose costs you must pay, the solicitor then acts for the
seller and the purchaser. IF THERE IS A DISPUTE WHOSE SIDE
IS THE SOLICITOR ON? IN MANY COUNTRIES THIS IS CONSIDERED
A CONFLICT OF INTEREST AND SEPARATE SOLICITORS FOR THE BUYER
AND SELLER ARE A MATTER OF LAW.
FACT –
An offer to purchase nearly always contains a ‘sold
as seen clause’. Whilst the estate agent and owner cannot
knowingly hold back information about defects it does mean
you are buying the property as seen. HOUSES CAN CONTAIN STRUCTURAL
AND HIDDEN DEFECTS THAT ARE NOT APPARENT WITHOUT PROPER SURVEYS;
IN THE EVENT OF THIS BECOMING APPARENT AFTER YOUR PURCHASE,
IT IS BASICALLY BAD LUCK!
FACT – Many people know of a horror
story about someone who has purchased a property.
TO TAKE A CHANCE ON POSSIBLY YOUR BIGGEST ASSET AND FAMILY
HOME SIMPLY MAKES
NO SENSE!
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