Legal Steps to Selling a House

Article Summary

• You can sell a home privately or employ an estate agency under a sole or open mandate.
• You need to draw up a sales agreement and sign the offer to purchase.
• You are legally obligated to provide certain documents, including five certificates of compliance.

Selling a home can be significantly profitable, but ensuring the process goes smoothly requires awareness of your legal obligations. Whether you’re selling a property to profit from your investment or to fund a new home purchase, knowing your responsibilities will help you avoid any roadblocks.

Here are the legal steps to selling a home:

1. Agree on a Mandate with the Estate Agency

When you employ an estate agent to market the property, you can agree on a sole mandate or an open mandate. A sole mandate means only one estate agency will have the rights to market and sell the property, while an open mandate allows multiple agencies to get involved.

Each approach has its pros and cons. An open mandate may result in higher visibility for your property as more agencies will be advertising it. However, a sole mandate means the estate agency you hire will be committed to getting you the best deal rather than competing with other agencies.

2. Draw Up a Sales Agreement

A conveyancer attorney can be hired to draw up the sales agreement for you. This will include information such as:

• The full name, address, and ID number of the seller, if the seller is an individual.
• The registered name, registration number, and registered address if the seller is an entity.

You can draw up the sales agreement yourself, but it’s better to hire a professional. Estate agencies usually have their own standard sales agreements that can be used.

3. The Offer to Purchase

The offer to purchase is different from the sales agreement in that it is made by the buyer and contains a proposal to buy the property.

The seller needs to read through the offer carefully and ensure that all the terms of the agreement work for them. It will usually contain a time period in which the seller must accept the offer, otherwise the document will become void.

The offer to purchase is legally binding; breaking the terms of the agreement will incur a significant penalty.

4. Inform the Buyer of Any Flaws or Defects

The seller must inform the buyer of any flaws or defects in the property, even if the property is being sold voetstoots.

5. Transfer of Property

The seller is responsible for appointing the conveyancing attorney, who will transfer the property from their name to the buyer’s name.

This part of the home selling process cannot be conducted privately. It is required by law that an attorney be present for the transfer of property and title deed registration process.

Documents Needed to Sell a Property

The seller is legally obligated to have certain documents, including five compliance certificates that prove the property is in good working condition:

1. Electrical Certificate of Compliance: Ensures that all electrical work conforms to regulation standards.
2. Electrical Fence Certificate: Required if there is an electric fence installed, separate from the rest of the electrical grid.
3. Water Installation Certificate: Ensures that water regulation conforms to National Building Regulations.
4. Gas Certificate of Compliance: Ensures that all gas installations are in order, such as gas-powered stoves, fires, and geysers.
5. SPLUMA Certificate: Compliance with the Spatial Planning and Land Use Management Act (SPLUMA) is necessary when selling property. This involves ensuring that the property meets all zoning and land use regulations. A SPLUMA certificate must be obtained from the local municipality, confirming that the property is compliant.

Other documents required by the seller include:

• Proof of your identity.
• Title deed for the property.
• Shared Freehold documents (if applicable) or leasehold documents (if it’s a leased property).
• Management Information Pack (required if you pay service charges or if the property is a leasehold).

Should I Hire an Estate Agent?

Although you can choose to sell your home privately, it is recommended to employ an estate agent as they provide invaluable advice and reduce the administrative burden.