Pitfalls the residential property buyer may face
Category News
When buyers and sellers of a residential property have successfully worked their way through the whole negotiation and transfer process, have checked and signed the legal documents and have sorted out the financial arrangements, they still face one challenge: they have to co-ordinate their departure and occupation dates. Ideally, says Rowan Alexander, Director of the Alexander Swart Property Group, the seller should move out and the buyer in on the same day. Often this is not possible, especially if one or both have a substantial amount of goods to be moved. The important point, says Alexander, is that both parties should agree in advance on which dates they will move. This should be a signed, legal contract which cannot be broken without the offending signatory paying heavily in compensation for the inconvenience almost invariably caused if such agreements are not kept. If a home is to be left unoccupied for a day or two, or longer, provision should be made to ensure that it is not broken into.
In some cases, a home may be sold with a tenant still occupying the property where the Roman-Dutch legal principle "Huur gaat voor koop" always applies. A tenant with a legal rental contract to occupy a home cannot be summarily evicted to make way for the new owner, but this is something some buyers do not know. -The buyer's position can be complicated further if the agreement allows the tenant to renew the lease for a stipulated period when it expires. The buyer taking over a property with a tenant in occupation must study the tenant's lease very carefully and recognise his rights.
Of course, says Alexander, it may be a case where the buyer is only too happy to have a tenant in place if he is buying the property as a revenue earning investment. Among Alexander Swart clients there are many who built up substantial portfolios in this way. If the buyer intends to occupy the home or put another tenant in it, it is quite clear that the law will not allow him to break an existing tenant lease unless the tenant is defaulting on his rental payments. Even so a lengthy legal process has to be followed to have a tenant evicted. Tenants' rights are firmly embedded in South African Law.
"It is wise to recognise these possible pitfalls at the outset," says Alexander. "Uncoordinated occupation dates and "unrecognised" tenants have caused problems throughout SA's property history and a good agent will do everything he can to prevent a client making mistakes here. Regrettably a small minority of untrained agents have at times not advised their clients adequately on these important matters but the vast majority can be relied on to give the right advice."
For more information contact Rowan Alexander via email : rowan@asproperty.co.za or by cell phone 082 581 3116.
Author: Independent Author
