House Hunting 101: Simple Tips for Buying Your First Home
Buying a home is exciting! But for first-time buyers, signing the Sale Agreement (the legal contract) can feel overwhelming. Don't rush this step—it’s the most important one!
By working with an experienced estate agent and a property lawyer (called a conveyancer in South Africa), you can negotiate confidently.
1. Inspect the Property Thoroughly
Before you even make an offer, do your homework on the house:
- Research: Look up the location, how old the house is, its market value, and any past issues.
- Physical Check: Walk through the property carefully. Look at everything! This helps prevent surprises and stress later.
Understanding Defects (Problems)
It’s very common to find problems after you sign the contract. This is why most contracts have a "voetstoots" clause.
- What "Voetstoots" Means: It basically means you are buying the property "as is."
- Patent Defects (Visible): These are problems you can easily see during a normal inspection (e.g., a cracked window, a broken tile, a missing light fitting). The seller is generally not responsible for fixing these once the deal is signed.
- Latent Defects (Hidden): These are serious problems that are hidden and not easily noticeable (e.g., mould behind a wall, a leaky roof, or a faulty foundation). The seller is responsible for these only if they knew about them and intentionally failed to tell you or the agent.
2. Know What You Can Afford
Before you start looking at houses, figure out your budget.
- Get Pre-Qualified: Speak to our member agents to refer you to the most experienced bond originator (a home loan specialist) to get pre-qualified for a loan.
- Set Clear Limits: This gives you a clear idea of the maximum price and monthly payments you can realistically afford. Knowing your financial boundaries puts you in a stronger negotiating position and keeps you from signing a deal you can't manage.
- Check Your Credit: Pre-qualification shows you your credit score and highlights areas you might need to improve to get the best interest rate.
Note: Pre-qualification is different from final bond approval, but it gives you the confidence to search for homes in a suitable price range.
3. Get Professional Legal Advice
The Sale Agreement is a legally binding contract. Because property transactions are so important, it’s a smart idea to:
- Consult a Property Attorney: Have a lawyer specializing in property law look over the agreement provided by the estate agent - before you sign it. They can ensure all your questions are answered and concerns are addressed.
- What a Lawyer Can Check:
- Title Deeds: They check the official ownership documents to make sure there are no legal restrictions or hidden conditions on the property.
- Building Plans: They verify that the house's current layout and structure were built according to approved city plans.
- Compliance: They ensure everything is legally in order.
4. Negotiate Special Conditions
Don't be afraid to ask for changes to the contract! You need to add special conditions to fit your needs.
- Repairs: If the seller agrees to fix something (like a fence or a geyser) before you take ownership, this promise must be written into the contract, clearly detailing what they will fix.
- Fixtures & Fittings: If the sale price includes items that aren't usually permanent (like certain curtains, a specific garden shed, or a fancy outdoor light), your agent must list them in a document called an Inventory (or a "Fixtures & Fittings" list) and attach it to the agreement.
5. Include Suspensive Conditions (If Needed)
These are common clauses that essentially put the entire contract on hold until a specific event happens.
- Bond Approval: The most common suspensive condition is getting the approval for your home loan (mortgage bond).
- Selling Your Current Home: Sometimes, the sale is dependent on you selling your current property first.
- Time Limits: For legal safety, these conditions must have specific deadlines (e.g., "The buyer must secure bond approval within 21 days").