|
Buy your property in South Africa
Kaapstad.org is
helping you with the choice of agent and legal information. We can negotiate
with the agent while you are overseas. If you have a property in South
Africa and you want to rent the property out while being overseas, we help
you managing the property and look for the right tenants.
In South Africa, foreigners have the opportunity to buy
property with much more value for money than in other countries. Especially
the immediate surrounding of Cape Town is very popular. For example the
Atlantic Sea Board between Green Point and Hout Bay are very good in the
market.
Other interesting places of investment are the West
Coast (Blouberg), the North and South Coast of Durban (Kwazulu-Natal) and
the Cape Winelands.
Buying a property does not happen overnight, therefore
it is very important making the good estate agent choice.
The South African estate market is very irregular and
far from well controlled. Basically anybody with some knowledge can start
selling property.
Larger estate agents get support from an organization
called Eaab (Estate Board) which is looking after the wellbeing of their
estate members but not after the clients who stand much too often in the
cold when it comes to legal support (this comes closely to corruption). In
fact the Estate Board has to many stakeholders in its own board. Therefore
it is outmost important for you as a potential client and homeowner to chose
the right estate agent.
The right estate agent will provide you accurate
information and explain the procedure as it should be. To finalize the sale,
an attorney will be appointed by yourself or recommended by the estate
agent. The attorney will then follow the normal legal procedures to register
your property.
Make sure you get the following:
- Make sure that you get a copy of the signed
contract from both parties (buyer and seller) within the legal terms
- Would it be advisable to move into your new
property before registration? Moving in before registration can put you
in trouble, therefore a good legal backup of proper estate agent is a
necessity
- Read the contract before signing, long complicate
contract can be tricky
- Make sure that the commission on selling/buying is
as per your agreement (some terms and conditions such as commission
structure can be negotiated)
- Commission in South Africa should be from 6%
onwards. Do not allow too high commissions and complex contracts. This
is often the case when it concerns foreign buyers.
- Do not allow amendments in the contract without
your permission and signature
- Double check with the local municipality if your
entire property surface is yours. Much too often a property is sold with
a larger surface than registered with the local authorities (walls,
driveway, garage or other structures on government property).
- If a bank loan is needed, listen to the advice
from the estate agent. Most estate agents will handle the loan
negotiations with the banks. It is possible to undertake loan
negotiations yourself to get the best bond rate.
- Demand from the estate agent a beetle and
electricity certificate, this should be stated in the contract as well.
Ask for a copy, not for empty promises.
- Be at your new property when the beetle or
electricity inspection is checking out. Much too often these people are
ghost companies and the profit is disappearing in the pocket from the
estate agent. You are entitled to choose your own beetle inspector and
electrician.
- Include a life insurance in your contract with the
bank, if not approach an insurance company.
- Include fire/theft insurance in your contract with
the bank, if not approach an insurance company.
- If buying in a security complex, make sure which
communal costs have to be paid monthly.
- Check the alarm system and pool infrastructure to
find out if working properly.
- Go through the list with what is included and not
included (vast structures such as build in cupboard and bar, pool
supplies…), if not such a list available, please demand one from your
estate agents.
- If buying a property near the beach, make sure if
the public beach can be reached without traversing your property. If the
only way getting to the public beach is through your property, then with
the new laws since November 2006, the government is entitled to claim
your property or part of your property to be able to reach the public
beach. Inform with the local municipality or estate agents if this would
be a possible horror fact.
- Once the property is bought and registered on your
name, change the account holders name from the electricity and water
bill at the local municipality.
- Check out if your property is in a safe area and
if the investment is well worth it. Agents sometimes only want to sell
and when foreign, you might not be aware of local problems. Your finding
can be support by information provided by the bank and statistics at the
local police station or municipality.
Renting a property
Kaapstad.org is working
together with several agents to find you the right property to rent during a
longer stay in the country.
|
