Top Tips for First-Time Home Buyers

Buying a home is exciting, but the sale agreement (the contract) is a serious legal document that needs careful attention. Too many first-time buyers rush this step. Here are the top tips, simplified, to help you negotiate confidently and avoid costly mistakes.

1. Do a Serious Inspection of the Property

Before you sign anything, you need to be an investigator. Thoroughly check the property's location, age, and condition. This minimises surprises later.

• Understand the "Voetstoots" Clause: Most South African sale agreements include this clause, which basically means the property is sold "as is," including any defects.
• • Patent Defects (Visible): The seller is not responsible for problems you could have easily seen during your inspection (e.g., cracked window, broken tile). If you can see it, it's your problem after the sale.
  • Latent Defects (Hidden): The seller is responsible for hidden problems (e.g., a leaking roof, severe damp) if they knew about them and deliberately failed to tell you.
  • Do not sign an offer to purchase before the estate agent has presented to you a complete Seller Declaration and a completed Fixture and Fittings list. Both these documents will form part of the sales agreement. Estate agents are legally required to not only present it to you as the buyer but obtain the acceptance and signatures of both sellers and buyers on these 2 documents, as it will form part of the Offer to Purchase.

2. Know Your Budget (Affordability)

Do not start house hunting without a clear financial budget.

• Get Pre-Qualified: Contact a bond originator to get a bond pre-qualification. This gives you a realistic idea of:
• • Your credit score.
  • The maximum loan amount you can likely get.
  • Your estimated monthly repayments.
• Why it matters: Pre-qualification does not guarantee the loan, but it sets a sensible price range for your search and strengthens your position when negotiating.
• Work with a bond originator: It is also very important to work with an experienced bond originator. Please ask one of the CCH member estate agents to recommend the best bond originators they have been working with over the last 20 years. Bond originators can not only help you to obtain a home loan (without charging you a fee), but they will bring the much needed “competition” for your business by submitting your application to all the big banks – including your own bank. If your own bank does not need to compete for your home loan business - they will not!  

The Legal Side of the Agreement

3. Get Professional Legal Advice if you feel Uncertain

The sale agreement is the legal foundation of your entire purchase. If you feel uncomfortable with the Offer to Purchase provided by the estate agent, have an experienced property law attorney (conveyancer) look over the draft provided by the estate agent - before you sign.  Never make an offer to purchase a property without knowing exactly what it entails – i.e. what your contractual obligations will be. Make sure that the estate agent explains each clause of the pro forma offer to purchase to you.

• What you need certainty about:
• • Title Deeds: You need to ensure there are no hidden caveats or restrictive conditions that might limit what you can do with the property.
  • Building Plans: You need to confirm that the current structure (e.g., garage, extension) has approved building plans.
  • Compliance: You need to ensure that the legally required certificates of compliance will be issued before transfer of the property into your name, by a certified service provider (in accordance with the relevant laws).

4. Negotiate and Detail Special Conditions

The standard contract should be modified to include anything you and the seller agreed upon verbally. If it is not in the contract, it does not exist legally.

• Repairs: If the seller agrees to fix the roof or a broken geyser before the transfer, this must be written down explicitly in the agreement, detailing what will be fixed.
• Included Items: If the sale price includes items like the garden shed, a special light fitting, or curtains, these must be listed in an inventory attached to the agreement. This forms part of the Fixtures and Fittings list. It must literally make provision for all the fittings (i.e. whether the seller will be removing it when vacating the property / or after the transfer of the property. It is advisable to make sure if items which are not fittings – such as pot plants, will be removed by the seller (or not).

5. Use Suspensive Conditions (The "Get-Out" Clauses)

These are conditions that must be met for the contract to become fully valid. They essentially put the entire agreement on hold until a specific event happens.

• Most Common Use: Securing your mortgage bond (home loan) approval. The agreement will state that you have, say, 30 days to get a home loan approval. If you do not get the loan within that time, the contract is automatically cancelled, and you walk away without penalty.
• Other Use: Selling your current property to fund the purchase of the new one. If you do not sell your property before a specific date, your offer will also lapse.
• Key Requirement: Always include specific timeframes for these conditions to be met.