Wednesday, 29 July 2015

South African Property Industry Dysfunctional

#SAProperty industry is dysfunctional.
#MoneyMatters #Opinion

1) The Real Estate Agent is mandated by the seller of a property to market a property and to take care of the interests of the seller. This is basic principal / agent common law.

Although estate agents would disagree they have no interest in the rights of the buyer. This is the reason there are so many disputes related to property transactions.

The buyer has no professional support or advice when he makes decisions.

2) The conveyancer (attorney that does the legal transfer of property) is mandated by the seller. Again, to protect his interest.

3) The bond registration attorney (that has to register the bond in the deeds office) is mandated by the bank that finances the purchase for the buyer. Again, to protect the banks interest.

The buyer has to rely on his own knowledge, skill in negotiation and the good will of other parties when making the largest financial decision of his life.
Not a risk I would take if I were not a specialist but many people do so daily without a second thought.

Just because you bought and sold a few properties does not make you a specialist. Your brother in-law that's an agent does not protect you.

Why do people take more care when buying a car than they do buying a property?

In many countries its practice to appoint a buyers agent that would act on the behalf of the buyer.

Makes sense Yes?

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