Make the move without the stress

Buying a new home is fraught with a myriad of details – and buyers don’t need added complications when the day comes to move lock, stock and barrel.

A few precautions can, however, prevent a lot of unnecessary stress, advises Martin Schultheiss, CEO of the Harcourts Africa property group.

In the first place, buyers should ensure that their sales agreements clearly state when they may take occupation of the property. This date is usually the first day of the month after transfer of ownership is registered in the buyer’s name, but may be negotiated between buyer and seller. It is, however, advisable that the agreement specifies a date, rather than a vague description such as “upon registration of transfer”.

If the agreed date allows the seller to keep occupying the property for a period after transfer, the agreement should clearly stipulate the amount of occupational rent payable. It is also helpful to stipulate that occupational rent must be credited to you as soon as the suspensive conditions of your agreement have been fulfilled as it will reduce the amount of ready cash you need to cover transfer and moving costs.

In the second place, says Schultheiss, buyers should arrange to have house keys and remote controls to gates and alarm systems handed over in good time. “It is certainly stressful to be confronted by a locked property when the removal van arrives at the gate,” he says.

“Thirdly, moving in and unpacking are much easier if the house is properly cleaned beforehand. If the seller does not undertake to do this, buyers may consider hiring a professional cleaning team. Arrangements for access to the property a day or two before the move should be made well in advance.

“And, lastly, don’t leave any details about the deal to the last minute. All questions about the property should be answered and negotiations regarding payments for repairs should be finalised when the deal is negotiated – and certainly before the contract is signed.

“One way of ensuring this process flows smoothly is to appoint an experienced and knowledgeable estate agent who will make sure the details are taken care of as a matter of course.”

Carol Reynolds, Pam Golding Properties' (PGP) area principal in Durban North and La Lucia, says the most important factor for buyers to consider is that the transfer costs are called for 2-3 weeks before registration takes place, and this is why it’s always critical to have the funding for costs upfront. “Buyers can’t rely on their bond finance because the bond will register simultaneously with the property, and until costs are paid, transfer cannot proceed.

“The general process is that the attorney calls for documentation to be signed and costs to be paid just prior to lodgement, if the buyer delays at this point, then the entire transfer process is stalled.

“It is also advisable to agree upon an occupation date at the time of sale as without a set date, removal companies cannot be booked. We like to put a set date in the agreement of sale so that both parties can work towards this date, and if transfer is delayed for any reason, pro rata occupational rent is paid by the purchaser. Similarly, if transfer happens sooner than anticipated, the seller will pay pro rata occupational rental to the purchaser.

“The difference between occupation and transfer is critical. Ownership vests in the seller until date of transfer, irrespective of the date of occupation. Hence, risk only passes to the purchaser post-transfer. This means that purchasers should not begin renovating until transfer has taken place, and sellers must continue with their household insurance, until date of transfer.

She says there are a number of logistical practicalities that need to be addressed. “First, ensure that the lights and water have been connected and that the municipal account, the telephone account and the alarm have been transferred across to the new owner. Secondly, notify all service providers and clients of the change of address. Thirdly, make sure that you have insured the property from date of transfer.”

When asked about the pitfalls of moving, she said buyers agree to purchase properties “voetstoets” which means that they indemnify the seller against any claims for latent defects. “A latent defect is a defect that requires a ‘trigger’ – a defect that the seller was not aware of, and one that therefore has never been communicated to the agent.

“Invariably, new ownership results in different usage of the house, and typically, the new owner will do something that triggers a latent problem. Unfortunately, there is no remedy to assist the new owner in this situation, and it can be terribly upsetting for the new owner.

“However, in the buyer’s favour, sellers must inform their agents of any known defects, and fraudulent non-disclosure is illegal, so where a seller has intentionally and knowingly concealed a problem, the purchaser has legal remedies.

“On a less serious level, houses always look vastly different without furniture, and small factors like holes in the walls from pictures, or chipped floor boards that have become visible after-the-fact, often leave new owners feeling despondent, but these are minor cosmetics that can be easily fixed. A house always becomes a home once it’s been furnished with a personal touch.”

She says sellers have obvious duties as far as moving out is concerned. “The seller is obliged to leave the fixtures and fittings that were included in the deed of sale. Light fittings can’t be changed or removed without the purchaser’s written consent.

“Most sellers will exit with a list of service providers for the new owner, and facilitate the transfer of accounts into the purchaser’s name. The seller should leave the home in the condition it was in at the time of date of sale, and on the terms agreed upon at the time of signature of the parties.”

Lanice Steward, MD of Anne Porter Knight Frank (APKF) says the importance of having a definite occupation date and an occupational rental in every deed of sale – in case the transaction does not go through on the anticipated date – has been highlighted by the Deeds Office strike.

“The strike will affect buyers, sellers, estate agents, transfer attorneys, furniture movers and others, and will cause a fair measure of chaos throughout the property sector.

“The big problem, apart from delays on the transfer of much needed cash, is that people who had planned to move into a new property on a certain date will in all probability not be able to do so legally if transfer has been delayed: 99% of buyers do, in fact, usually coordinate the expected date of transfer with the date they take occupation and any last minute changes here can be disastrous.”

Estate agents, said Steward, must insist that an occupation date is stipulated, along with an agreed occupational rental, and this rental will have to reflect a satisfactory interest rate on the sum to be paid to the seller.

“Rentals in those situations should be market related and should reflect a reasonable return on the seller’s capital locked up in the property,” said Steward.

Under normal conditions, said Steward, transfers take six to eight weeks in the Cape. The strike by the Deeds Office, she said, could extend this indefinitely as the signs are that it could be long-lasting. – Eugene Brink

Readers' Comments Have a comment about this article? Email us now.

We put in an offer to purchase on a property in Jan 2010. With all the problems getting Clearance certificates, we signed an addendum to our contract to allow us to move in before transfer (on August 1st 2010). I am nearly 8 months pregnant, and we didn’t want to be moving RIGHT when the baby was due, because of the stress. However, not a SINGLE item on our conditions of sale has been seen to and several OTHER problems have some to light.

The conditions of sale included

During the seven (7) months we were waiting for a clearance certificate, there are numerous other things which have been broken and not repaired. The security and CCTV system no longer works, various tap mixers are broken, and an exterior patio door doesn’t even lock. There are broken toilets, broken interior doors, broken basins, seriously broken kitchen counters, light fittings removed – the list just goes on and on. For our own safety we have been forced to replace the alarm system, the patio door and locks on external doors, and the cost of THAT was well over R10,000.00.

The Electrical compliance certificate should have been issued within one (1) week of them accepting our Offer to Purchase. We had to have an independent Electrician come in (one recommended by the Agent) and his quote to fix all the problems AND issue the Compliance Certificate is nearly R22,000.00. Having plans for the council drawn up will be approximately another R15,000.00 and we have no guarantee that the council will even pass the plans, meaning that the buildings that they have added on without plans MAY have to be torn down. To add insult to injury, they are leaving the country and have abandoned their cats, which we now have to pay someone to come and catch and remove as they have (according to the neighbours) attacked their pets and themselves in the past.

What I would LIKE to know is what on earth we DO in a situation like this? The Agent and Lawyers attitude is that we must pay for it, but SURELY there must be a clause somewhere which protects buyers from this sort of thing happening? I have refused point blank to pay for anything that is part of the conditions of sale, but what about things that were working when we first looked at the house and signed the contract, and then have been allowed to fall into disrepair since then? – Bronwen Smith