R150 000. That’s what a couple ended up paying over and above the purchase price of their ‘new’ home. What they didn’t know when they signed the sales agreement was that they would need to replace the roof sheeting, rotten door frames, and a leaking geyser before they moved in.
And, because they signed a disclosure document stating that the house was in good working order, they couldn’t return to the seller or estate agent with their complaints or bills. Buying a new home? Don’t let this happen to you!
Carte Blanche recently investigated the selling of houses with disclosure documents, often including a voetstoets clause. Also, these sales are not covered by the CPA.
The result? New home owners left with extensive and unexpected repair bills and no recourse. According to Eric Bell of Inspect-A-Home, “Every week, we see houses that are painted to make them look good on the surface and unsuspecting buyers are then taken to the cleaners with surprise repair bills. Their dream house becomes a nightmare!”
While sellers are liable for latent defects that exist at the time of the sale, by signing a disclosure document, buyers sign away their rights to that claim, effectively making the defects the buyer’s problem. As Bell points out, most estate agents and buyers are not qualified building inspectors and therefore cannot truly evaluate the extent of the damage to the property at the time of the sale
What should a buyer do?
Before signing any sales agreement, remember:
• Some estate agents insist that the buyer sign a disclosure document before the sale proceeds. By law, you don’t have to sign these documents!
• Most sellers and buyers are not qualified building inspectors and cannot evaluate the actual damage to a property.
• While the bank offers you a bond of a certain amount, they do not know the true value of the property. So, while you may think you are financially prepared to handle ‘fixer-upper’ issues, you might not have the budget for underlying, more costly problems.
In the US, it is standard practice for buyers to invest in the services of a property inspector before buying a property. This is not the case in South Africa but it should be! Be clear about the property you are buying – invest in the services of a property inspector accredited with the National Association of Certified Home Inspectors.
A reputable inspector like Inspect-A-Home will deliver a comprehensive report on the interior and exterior of the property, highlighting structural concerns and hazards, and recommending repair solutions. In order to ensure a fair assessment of your property, Inspect-a-Home will not suggest selected service providers.
Get a thorough inspection before you buy a property and ensure that there are no nasty surprises, unexpected costs, or messy legal battles waiting for you at the end of the sales agreement!
For more information, contact Inspect-a-Home on 0861 400 400 or info@inspectahome.co.za