05/12/2019
GETTING STARTED-SELECTING THE RIGHT PROPERTY
The prospect of owning a property is very exciting.
But with so much to consider in choosing the perfect property
that fits your needs, the process can be challenging.
What are the property options available? What are the processes
and procedures in finding the right property? Here are some
important things a prospective home builder should consider in selecting the
right property or stand:
Verify Ownership of the Seller
If you buy your land directly from the local authority, you must
have official receipts and make sure that all your paperwork is
done through legal channels until you have your title deeds. Side
deals with municipal employees may expose you to fraud.
You can also get residential stands from third parties. Be it a
developer, cooperative or individual, the person selling to you
must prove ownership of the land in question. Only the local
authority records can validate that claim.
Ensure that the seller has all the relevant certification and also
take time to verify with the issuing authority. It is not enough to
be shown a title deed and IDs. You must take the details and
verify them for yourself at the Deeds Office. They will charge you
a small search fee but it is worth the trouble and cost if it saves
you from being defrauded out of thousands.
Know Who You Are Dealing With
Regardless of who the seller is, before you commit any money,
do some due diligence. Do they have any referrals? In this day of
the internet, research can be easy. Has the seller been involved in
previous scams? Is what they are telling you making sense when
referenced to what the authorities say?
Find Out Why There Are No Title Deeds and the Total Cost
Implications
Developed land will have title deeds and that is the
recommended option. You may, however, choose to invest in a
residential stand that does not yet have title deeds because it is
what you can afford.
For example, if the area is not yet developed according to local
authority planning requirements such as the installation of
drainage culverts, roads, as well as water and sewer reticulation,
that settlement is potentially illegal and you may find yourself
facing demolitions or eviction at a later stage. You may also be
asked to pay more for development.
Not All Experts Are Equal
At some point you will need expert service, be it right at the
beginning or at the point of transfer. Be careful who you engage.
Just because someone is a lawyer or an estate agent, it does not
mean that you automatically defer to their advice. Do some due
diligence on the person that you are dealing with. Check with the
relevant council that the person has valid current registration.
Read the Small Print
Often people just append their signatures to documents without
taking the time to go through the fine print and understanding
the implications. If you have engaged a lawyer, then ask them to
explain exactly what it is that you are agreeing to. For example, if
you default on payments what are your options? In the event of
your death before the conclusion of the sale, is there any
insurance cover to protect your estate?
