We have all watched those horror movies where a cute couple moves into a house just to be stuck with a crappy ‘haunted’ house. This may be a bit dramatic, but one should always do some research on the property you may buy.
This is the advice by retail group RealNet estate. The company says that, like a company hiring a new employee, research is vital, and one should do due diligence.
Many people make the mistake of not doing a thorough background check and may go ahead and rent or buy a new home without knowing anything about the property’s “pedigree”.
“Enthusiastic buyers, anxious to complete the purchase of their new home, will often not even ask to see the title deed,” says Gerhard Kotzé, MD of the RealNet.
Kotzé also says that being ignorant of the previous owner and the house can prove very costly.
He argues that “time spent examining every detail is seldom wasted”.
“For this reason, our agents make a point of providing potential buyers with a copy of the title deed for any property on which they plan to make an offer, along with the current owner’s disclosure document relating to the condition of the home.”
“Prospective buyers should examine the title deed for any restrictive conditions that could prevent them for using the property as they envisage”, says Kotzé.
“Such conditions may refer to the size, number and placement of dwellings and other buildings on the stand. They can also dictate the style and standard of these buildings.”
“It is possible that they were registered years ago by the original developer of a suburb or an estate and are no longer at all appropriate, but even if they are clearly being ignored by other owners in the area, potential buyers can’t just forget about them.”
“They might have plans, for example, to sub-divide their stand and sell half of it, or to build some chalets and convert a house to a guest lodge, only to find that clauses in the title deed prohibit such moves and would take a great deal of time and money to get changed or removed.”
It should be noted that Kotzé also argues that home buyers should also look out for provisions in the title deed granting servitude over the property.
“Examples are when the owners of a neighbouring property have ‘right of way’ over part of your property in order to reach theirs, or when the council has a right to run a mains water or sewage pipeline down the side of your property - and once again this could affect the way in which you are able to use the property.”
PROPERTY BOUNDARIES
Another thing to examine carefully, Kotzé says, are the property boundaries and the building lines set down in the title deed.
These boundaries determine how far any buildings on the site can extend, according to Kotzé.
“Crossing these lines is known as an encroachment, and if buildings on your property are encroaching onto municipal property or your neighbour’s property, it is possible you will have to knock them down or pay compensation to the affected party – even if you had nothing to do with the encroachment”, he argues.
“On the other hand, you may find that your neighbour’s garage or fence encroaches onto your property – and not be able to do anything about it if the mistake was made more than 30 years ago.”
“These are just some of the reasons we strongly advise buyers not to rush into a purchase without careful checks of all the relevant paperwork, and suggest they work only with qualified, experienced and registered property professionals.”
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