Advice to avoid being scammed

ALL THE people affected in the property scam uncovered in Weekend Argus thus far would have been first-time buyers and were not clear about the process to follow when buying a house in cash or through a home loan.

The buyers responded to a Gumtree advert and were made to believe they were getting involved in a legitimate property transaction. Setoaba advises not to be too trusting and quick to transfer money without due diligence when buying property.

Here are some pointers to assist property buyers:

Ask the seller to provide you with a property condition report. This is a declaration of any known material defects to the building or its accessories. The report should not be regarded as a substitute for any inspections or warranties.

Get everything in writing.

Hire a home inspector to do an inside and outside inspection of the property, before concluding an agreement of sale.

Get proof of ownership. If the property is owned by more than one person, you need to have confirmation that all owners give consent for the sale of the property and sign the agreement of sale or offer to purchase.

Ensure your offer to purchase is made on a valid deed of sale agreement.

A conveyancing attorney can assist you in completing the sale agreement to make sure it is legal and binding. It is common practice that attorneys will not charge a fee for preparing a sale agreement if they are instructed to attend to the transfer.

Get a reputable conveyancing attorney to facilitate the transfer process.

Change in ownership for a property is done only at the Deeds Office (not when you make payment).

Each time a property is sold, a new title deed is issued in the name of the new owner, and attorneys assist with this, and other duties as part of the conveyancing process.

Do not pay any funds directly to a seller. Only pay this into the trust account of the attorney handling the transfer of the property.

Remember, you have the option of requesting that the deposit you pay be invested in an interest-bearing account at a bank. – Noloyiso Mtembu

Information by

Jacqui Setoaba – real estate marketing specialist at Keller Williams Extreme