WHY DO SELLERS & BUYERS CONDUCT HOME INSPECTIONS?
Thorough and professional home inspections are a way of making sure that no nasty (expensive and stressful) surprises jump out at either the seller or the buyer. This way, everybody knows what they’re in for. If the deal has been signed and sealed without any inspections, it’s too late and sometimes there is the potential for future legal complications, unforeseen costs and general unpleasantness.
For sellers
Certificates of Compliance
The first compulsory set of home inspections occurs after an Offer To Purchase has been signed. The seller then needs to acquire the necessary certificates of compliance (CoCs). When an accredited provider issues a certificate of compliance for a property, it confirms that the electrical (and other installations) meet the minimum standard for safety. All properties must have an electrical, plumbing, gas (if your property has any gas installations), and beetle compliance certificate. Your local agent can recommend compliance providers that you can use to issue these certificates.
As a seller, it’s your responsibility to ensure that your property is compliant because the transfer of the property will not go ahead until the necessary compliance certificates have been issued. Because safety requirements change over time, and because of everyday wear and tear, compliance inspections often reveal things that must be repaired or adjusted before the certificate can be issued. It’s the seller’s responsibility to pay for this work to be completed. If, after you sell, the new owner discovers problems that they can prove that you knew about, you will be responsible for sorting out the problem.
Mandatory Disclosure
In February 2022, Property Practitioners Act 22 of 2019 (PPA) came into effect and replaced the old legislation (Estate Agents Act) governing property transactions. The PPA makes it a legal requirement for sellers to inform both the agent and the buyer about any known problems with their property. Importantly, this is included in a disclosure form signed by the seller, buyer and agent and which becomes part of the offer to purchase (OTP).
Mandatory disclosure means that you must – legally – share or reveal this information about your property. To help sellers know what to look for, we’ve created an outline of the sorts of information that sellers are obliged to disclose about the property if any of these defects are known to them:
Basic home inspection checklist
General defects, faults or failings:
- in the roof
- in the electrical systems
- in the plumbing system, including the swimming pool (if you have one)
- in the heating and air conditioning systems, including the air filters and humidifiers (if you have any of these)
- in the sewage system on your property, septic, conservancy tank or whatever sewerage disposal system applies.
Major structural defects in the:
- foundations include cracks, seepage and bulges
- flooding and dampness
- wet walls and any mould or problems with tiling e.g. on the floors, kitchen, bathroom, etc.
- If your house has excess water that needs to be pumped away, you will probably have a sump pump. You will need to declare this and appropriate information about your pump.
Structural defects associated with the property boundary:
- Is there a disagreement between you (or anyone else) about the boundary lines of your property?
- Does anything encroach on the property? If so, what?
- If you have made alterations, extended or built more structures on your property, were these properly approved by the council?
- Has the property or any part of it been declared a historic monument or a heritage site
For buyers:
Before finalizing a home loan, banks will check the compliance certificates to be certain that the property complies with the relevant code and safety regulations. They will request this from the transferring attorney directly. But, it is important to remember that these certificates only check for the minimum safety requirements and do not extend to all potential defects. That is why buyers may want to arrange an additional home inspection as a way to verify what the seller has declared in the non-disclcosure form and to pick up on other faults that were unknown to the seller.
Where to find the right home inspector?
As with all providers, the best inspectors come with recommendations from happy customers. This will give you some peace of mind, trusting the company you appoint. Make sure that the inspector is a certified property assessment practitioner who has a comprehensive understanding of SANS10400.
What is involved in a home inspection?
It can take a few hours or a whole day (depending on the size of the property) for the home inspector to thoroughly evaluate all the potential problem areas (most of which were listed above). This includes, of course, overall structural condition, the roof, drainage around the house, and any water leaks. They will also check the walls, windows, and doors – internal and external – for damage or leaks. On your property, they will also check the drainage pool, garden walkways, steps, stairs and patios.
Who pays for the home inspection?
When a buyer requests an additional home inspection ahead of finalising an offer to purchase, a suspensive condition can be added to the OTP if the seller agrees. The cost for the home inspection is usually then at the buyer’s own expense. The seller can either choose to allow the home inspection to happen or potentially lose out on the deal.
If, as a result of the home inspection, additional defects are discovered, it will then become a negotiation between the buyer and the seller around who is prepared to cover the costs for the repairs. If either party is unhappy, the OTP can become null and void (depending on the wording of the suspensive condition) and the sale will no longer go ahead.
What if I discover defects later?
While sellers need to disclose up-front any defects, the voetstoots or as-is clause remains in the OTP. The Property Defects Disclosure form helps to make sure that everybody is “on the same page” about what defects are known to everyone. If a dispute does arise about a ‘hidden’ defect, it is the buyer that must prove that the seller or the agent deliberately hid or withheld the defect from them.
Home inspection checklist for agents
Good real estate professionals will go the extra mile for all their clients. They want everybody involved in the transaction to be happy, and for everything to go as smoothly as possible. This means that they’ll do their own home checks before handing over the keys to ensure that their clients do not walk into any surprises:
- Before listing a home, a good agent will –
- walk through the property and open all doors, windows and cupboards to check for faults
- flush toilets and run taps to check the water pressure
- switch on all lights and lamps to check for blown bulbs
- check that there are working keys for all doors and/or locks
- Before handing over the keys to new owners, agents will visit the property to double-check that all repairs were taken care of and ensure that the home was cleaned and is ready for its new owners.
A last word
Sometimes defects are not easily detected and as thorough as the agent, seller, or buyer might have been in their initial inspections, defects can unexpectedly reveal themselves after the transaction has been finalized. Things can get messy when trying to decide who is responsible to cover the repair work, which is why it is best to seek professional legal council if you do happen to find yourself in a situation like this.
Have more unanswered questions? Here are some related questions – and answers – that might help…
What is the purpose of a home inspection checklist?
A home inspection is a useful tool to guide buyers, sellers and agents involved in property transactions. Each professional might make use of their own checklist that will list all the areas of a home where problems may (or may not) arise and which might have to be dealt with either before a property goes on the market or before a sale can be concluded.
What happens during a property inspection?
During a home or property inspection a certified property assessment practitioner inspects your home and property for any major structural defects including and not limited to the roof, foundations, plumbing, sewerage, interior exterior including the pool. Defects can make the property unsafe and have a negative impact on the price and on any potential sale of the home.
What does a home inspection cost in South Africa?
There is no straight answer to this because prices can vary province to province, house to house, and supplier to supplier. The resultant cost will depend on where you are, who conducts the inspection, and what type of inspections you are doing.
For more in-depth answers to your property-related questions, please reach out to your nearest RE/MAX Office for some free advice.
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