Moving into a new home is supposed to be exciting and, for many buyers, it is often the happy result of a long and arduous house hunt. But, what if your happy ending is just the beginning of a nightmare?
Investing in the services of a reputable building inspector should be standard practice when buying a property and must take place before any sales agreement is signed.
Every week, Eric Bell of Inspect-a-Home comes across a new case of a house that looked good on the outside but was actually a hazard to the new owners, presenting them with structural and roof damage, leaks, and latent problem areas.
Despite a Carte Blanche segment and various consumer awareness pieces on the importance of home inspection, Bell says both buyers and sellers are entering into sales agreements without knowing the true state of the property. With pressure from agents to sign disclosure documents or Voetstoots clauses, and the outward appearance that all is well, buyers go ahead and sign before ensuring a professional inspection of the property has been done.
What are these new owners left with? Often huge, unexpected repair bills, disinterested estate agents and a seller who no longer owns the house and often denies any knowledge of the defects.
In a recent case, Mrs Hunt (not her real name), bought a house after being assured by the estate agent and the seller in writing, that ‘there is nothing that needs fixing around the house’. She moved in, paying occupational rent while the sale was finalised and soon discovered electrical problems (even though the seller had an electrical compliance certificate). After paying for an electrician to come and sort out the problem, she found that the certificate should never have been issued and was advised by the electrician that the roof was in a bad condition.
Concerned, Mrs Hunt called Inspect-a-Home for a thorough inspection of the house. The inspection report revealed extensive roof damage, serious electrical transgressions, some plumbing concerns, the need for external repair work, as well as a number of structural problems. None of these were disclosed at time of purchase but all add up to a hefty repair bill of over R82 000 (including roof repairs to the estimated cost of R73 000), and some serious safety concerns.
At a later meeting between the seller and Inspect-a-Home, the seller admitted to doing a few ‘repairs’ here and there in the roof, none of which were approved by a professional or disclosed to the buyer.
The matter has now become a legal one and, in line with the Consumer Protection Act, both seller and estate agent are liable for the non-disclosure of defects, and repairs must be made in order for the transfer to go through. This leaves Mrs Hunt in a difficult and unexpected situation.
Think before you ink
According to Bell, countless buyers find themselves in similar situations after signing disclosure documents. He says these documents ask buyers to sign off on a number of key areas, including roofing, geyser condition and damp problems. Unless you are a structural engineer or qualified building inspector, it is highly unlikely that you will be able to identify latent defects, he says.
“Every week, we see houses that are painted to make them look good and unsuspecting buyers are left with extensive and unexpected repair bills. Their dream house becomes a nightmare.”
Sellers are liable for latent defects that existed at the time of the sale but, by signing a disclosure document, buyers sign away their rights to that claim, effectively making the defects their problem. So, when damage is discovered at a later date, negotiating the payment of repairs or even the cancellation of the sale becomes complicated.
What to do before you sign
Before you buy a house and sign disclosure documents or accept a Voetstoots Clause, ask yourself the following questions:
- Do I really know enough about this property to sign? Unless you are a property inspector you can’t truly estimate the condition of a property. Disclosure documents often ask buyers to sign off on a number of key areas, including roofing, geyser condition, wiring and damp – all latent defects that are difficult to spot and that only an expert will be able to assess properly. In most cases, the seller won’t be able to tell you this.
- Do I have to sign this? Many new property owners are told by estate agents that they must sign disclosure documents or accept a Voetstoots Clause before a sale can be completed. This is not the case. By law, you are not required to accept or sign these documents. If you do and end up with a house that needs unexpected repair work, you will have little recourse with the estate agent.
- What should I do before I sign? Ask an expert. You take a car for an inspection before buying it; why not do the same for a house? Investing in the services of a reputable building inspector such as Inspect-a-Home should be standard practice when buying a property and must take place before any sales agreement is signed.
While it might feel like an extra spend, the cost of a house full of defects far outweighs that of a once-off inspection. Just one small defect discovered can make having an inspection done worthwhile and give you peace of mind.
Print
