Advantages

• Agents are familiar with market trends, area pricing and the legal process.
• They handle negotiations, documentation and communication between buyer and seller.

Disdvantages

• The agent’s commission is typically added to the seller’s costs but can influence the final sale price.
• The agent represents the seller’s interests first, unless otherwise agreed.

Tips

• Ensure the agent is registered with the Property Practitioners Regulatory Authority (PPRA).
• Read the Offer to Purchase carefully this is a binding contract once signed by both parties.
• Request full disclosure of known defects or issues with the property in writing.

Advantages

• Potentially lower prices than market value.
• Fast, transparent process.

Disdvantages

• Usually “voetstoots” (as is) no guarantees or recourse for defects.
• Non-refundable deposit (typically 10%) and auctioneer’s commission (often around the 6% mark) are payable immediately.
• Limited time to conduct inspections or arrange finance.

Tips

• Do thorough research beforehand obtain a copy of the Conditions of Sale.
• View the property if possible and estimate repair costs.
• Ensure you have pre-approved finance or funds available.
• Confirm any outstanding rates, taxes, or levies that may become your responsibility.

Offer to Purchase (OTP)

• Once signed by both parties, it becomes a legally binding sale agreement.
• Make sure suspensive conditions (e.g. subject to bond approval or sale of another property) are clearly stated.

Conveyancing Process

• Only a conveyancer (property attorney) may handle the transfer of property.
• The seller usually nominates the conveyancer, but buyers may request to use their own.

Compliance Certificates Required

• Electrical Compliance Certificate (national)
• Plumbing/Water Compliance (Cape Town and some municipalities)
• Gas Installation Certificate (if applicable)
• Electric Fence Certificate (if applicable)
• Beetle Certificate (mainly coastal regions)

Title Deed and Restrictions

• Check for servitudes, building line restrictions, or homeowners’ association rules.

Voetstoots Clause

• The property is sold "as is," but sellers must still disclose known defects; deliberate non-disclosure can result in legal action.

Costs Involved

• Deposit: Often 5–10% of purchase price (negotiable).
• Transfer Costs: Payable by the buyer (attorney fees, transfer duty if applicable).
• Bond Registration Costs: If financing through a bank, you’ll pay attorney fees for registering the bond.
• Transfer Duty (Tax): Payable to SARS on property purchases over R1,100,000 (as of 2025). Below that, it’s exempt.
• Municipal Rates & Levies: Check outstanding amounts these must be settled before transfer.
• Insurance: Homeowner’s insurance (compulsory with a bond) and home contents insurance recommended.

Financing Options

• Apply for home loan pre-approval before house hunting to understand your budget.
• Click the "Get pre-approved" button to get a pre-approval Get Pre-Approved
• Compare rates and terms from multiple banks (consider using a bond originator like Homeloan Juction / Ooba our preferred partners).
• Some banks offer 100% bonds for qualifying buyers, but a deposit generally improves approval chances and rates.

Budgeting for Ownership

• Account for ongoing costs: rates, water, electricity, levies (if sectional title), maintenance, insurance, and security.
• Leave a reserve for unexpected repairs or municipal increases.

Before signing anything:

• Verify seller ownership at the Deeds Office.
• Inspect the property thoroughly (consider a professional inspection).
• Request recent utility bills and levy statements.
• Confirm that all municipal accounts are up to date.
• Ensure the OTP includes all agreed terms in writing.
• Consult with a property attorney if unsure about any clause or condition.

Whether buying privately, through an agent, or at auction, the key is informed decision making. Take time to understand the full costs, review all legal documents and seek professional advice when necessary. A careful approach can save you from costly surprises later.

• Property Practitioners Regulatory Authority (PPRA): Visit PPRA
• Deeds Office Search (Property Ownership): Visit Deeds Office
• South African Revenue Service (Transfer Duty Tab): Visit SARS

• Email: support@propertynest.co.za & info@propertynest.co.za
• WhatsApp: +27 082 476 7964
• Website: www.propertynest.co.za
• Alternatively, complete the get in touch form below!