As South African consumers we’re often misled and taken advantage of due to us not fully understanding our rights. The impact of this can have long lasting consequences, especially if the nature of the product or service being provided is over a long period of time. Unfortunately, because of not knowing who and where to lay valid complaints, there’s rarely any consequences for the service providers, both in the public and private sectors.
In property, knowing your rights as a consumer is very important, especially because the product you’re purchasing has an indefinite shelf life. It’s equally important to understand that your decision triggers an entire value chain of profitable businesses.
You buying a home means an estate agent will charge a commission to sell you the house. The government will levy a transfer cost and transfer duty, depending on the price of the property. An attorney will also benefit, by charging for transferring the property to you. Another attorney will charge a fee to register the property in your name at the Deed’s Office. Finally, if you require a home loan to purchase the property, the bank will top it off by charging a fee to initiate your home loan account.
These five businesses will benefit from providing a service to you and rightfully so, the service needs to be rendered fairly. In the context of the estate agent, their fees are included in the selling price of the house, which is about 2% to 7% of the price agreed to by the seller.
While the estate agent
plays a key role in brokering the sale of the property, it is important to note
that they generally act on behalf of the seller and not the buyer. This is
important to understand because it informs how your rights as a buyer need to
be enforced.
Understanding the four rights below makes it easier to negotiate the best deal for you.
Right to a property valuation report
As a buyer, you have the right to request a property valuation report, to see what the current purchaser bought the property for. This will also show you how much similar properties in the area have been sold for. This will help you gauge if you’re paying a fair price for the property.
Right to reduce any special conditions
You have the right to reduce in writing any special conditions to the sale of the property that should be fulfilled prior to the transfer taking place.
Right to request discounts
You have the right to request discounts on the transfer and registration costs, to assist you with saving money on the purchase of the property.
Right to arrange your own finance
Lastly, you have the right to source your own finance from all the banks. With this, you should be allowed a minimum of 21 working days (from the day you sign the purchase agreement), to secure funding. Getting the best home loan deal for you is very important, considering the high cost of the purchase, plus the lengthy term of owning property.
You can use an
independent marketplace like www.mortgagemarket.co.za to objectively compare
home loans. What’s more is they will negotiate the best home loan rate on your
behalf.
