Sellers

Quick reference points

• Always ensure that you are dealing with a duly registered, qualified agent
• Price your property at a market related price. Our trained agents can provide you with sound advice and a Comparative Market Analysis on your property, taking into account comparative sales in your area.
• Free property valuations done by a FNB valuator – T's & C's apply
• A mandate to sell is a legal contract entered into by a seller and an agent (on behalf of the estate agency the agent represents). Your FICA documents (Identity documents and Proof of Address) are required when signing a mandate to sell, according to the Financial Intelligence Centre Act (FICA), Act 38 of 2001. Different FICA documents apply for trusts and legal persons.
• Different mandates available to sellers:
  • Open Mandate – open to all agencies and the seller to market and sell the property. Normally open ended until the property is sold or withdrawn from the market by the owner. All agencies mandated on the open mandate may determine their own selling prices, according to their commission percentages added onto the nett selling price provided by the seller.
  • Sole Mandate – only the estate agency mandated to sell the property as well as the owner may market and sell the property. Sole mandates are entered into for a specified period only. Upon expiry date of the mandate, the agency needs to enter into a new agreement with the seller in order to continue marketing the property. Sole mandates cannot be automatically extended.
  • Exclusive Mandate – only the estate agency mandated to sell the property may market and sell the property. Everyone else is excluded from the mandate, including the owner. Exclusive mandates are entered into for a specified period only. Upon expiry date of the mandate, the agency needs to enter into a new agreement with the seller in order to continue marketing the property. Exclusive mandates cannot be automatically extended.
  • Exclusive Group Mandate - only the specified group of estate agencies mandated to sell the property may market and sell the property. Everyone else is excluded from the mandate, including the owner. Exclusive mandates are entered into for a specified period only. Upon expiry date of the mandate, the group needs to enter into a new agreement with the seller in order to continue marketing the property. Exclusive group mandates cannot be automatically extended.
  • Dual Mandate – only two agencies mandated by the seller may market and sell the property. All other agencies (and often the owner) are excluded from the mandate. In a dual mandate both agencies are obliged to market and sell the property at the exact same price. A dual mandate is entered into between the seller and the two agencies for a specified period only, after which the agencies need to enter into a new mandate with the seller. Dual mandates cannot be automatically extended.
• Ensure that you familiarise yourself with the terms and conditions or clauses in the mandate to sell that you enter into with any estate agency and protect yourself from having to pay double commission.
• Sellers must notify the mortgagee (the financial institution holding the mortgage bond over your property) in writing of their intention to sell their property. Sellers are required to give 90 days' notice of such and repeat notification every 90 days thereafter. This will prevent sellers from having to pay the mortgagee penalty interest.
• A bond cancellation fee is payable by the seller to the bond cancellation attorneys appointed by the mortgagee (financial institution holding the mortgage bond over the property). This fee will amount to ± R3000.
• Dress your property for success
• Sellers must provide the following documents for the property before registration can take place into the name of the purchaser –
  • Electrical Certificate of Compliance (CoC) issued by a duly registered electrician – all properties
  • Electric Fence Certificate of Compliance – must be separate to standard CoC, issued by a duly registered electrician – all properties with electrical fences
  • Gas Certificate of Compliance – all properties with gas installations
  • Plumbing Certificate of Compliance – upon request from financial institution mortgaging the property
  • Borer Certificate of Compliance – upon request from financial institution mortgaging the property or purchaser when the property has had an obvious infestation.
  • Valid building plans (Updated & Approved by the town council) – upon request from the bank or the purchaser.
• Make provision for any repairs needed in order for the abovementioned Certificates of Compliance to be issued.
• The town council will require a seller to pay the equivalent of 4 months' rates and taxes in advance, as well as any outstanding municipal debts in order to obtain a clearance certificate on a property, which is required before a property can be registered into the name of a purchaser.
• Likewise, a clearance certificate from a home owners' association or body corporate is required in respect of monthly levies payable by the seller of a property.
• Make provision for moving costs.
• Ensure that you familiarise yourself with the terms & conditions or clauses of the agreement of sale that you enter into on your property. It is a legally binding contract with implications that the estate agent needs to clearly explain to you. Ensure that you have the option to accept follow up agreements of sale.
• The seller is required to continue monthly payments to the mortgagor, the town council and where applicable the body corporate or home owners' association up to date of registration into the name of the new owner.

http://www.mcvdberg.co.za/language/en/MCSellersGuide