Tips for first-time property buyers and renters to avoid common mistakes

Struggling with the finer details is often a challenge first-time property buyers or renters are confronted with.

It is an intimidating process for many when it comes to crossing the t’s and dotting the i’s.

The list of common mistakes made by would-be property owners and renters is quite elaborate.

Speaking to the Courier, Local Real Estate sales and rentals teams provided insight into helping people get their ducks in a row and avoid possible pitfalls.

Potential tenants need to know they will be vetted prior to being approved.

According to rental agent Lauren Vallee, this includes credit and criminal checks and references from past landlords if applicable.

“You have to pay deposits, sometimes more than one month’s rental as a deposit and the first month’s rental at the same time,” said rentals manager Kirsty Hodgson.

Vallee advised renters not to shy away from negotiating terms, adding negotiations would generally relate to extras included in the rent such as garden and pool services.

If rental is regarded as overpriced, it could be a good idea to include certain additions such as Wi-Fi. There is a long list of things first-time renters need to get clued up on, Vallee pointed out.

“In many cases people fail to understand lease cancellation penalties and they do not take inspection reports seriously enough.

“This could open one up to being held responsible for all kinds of things on the property,” she said.

Fair wear and tear is another factor to be clear on.

This relates to the deterioration in the condition of the leased premises caused by normal, everyday usage during the lease period. Landlords are responsible for this.

Using legitimate agents to handle your affairs is another key aspect if potential renters respond to private rental offers. Agents validate authenticity.

“Rental scams are rife. Fake agents market properties that do not exist or are not actually available to rent,” said Vallee.

When it comes to buying a property, Local Real Estate managing director Graham White said failure to correctly and fully complete a sales agreement form means back to square one for many.

“Electronic signatures are not allowed and the contract would be deemed invalid. Potential buyers must also ensure they have all their FICA documents in place, and factor in transfer and duty costs.

“Some buyers make an offer and fail to consider all the extra costs, which means they can no longer offer the price.”

Checking one’s credit score is also important.

Many new homebuyers are not familiar with the ‘trust, but verify’ policy. While a seller’s disclosure form has recently become a legally binding document compelling property owners to disclose known faults on a property, the voetstoots clause is still very much in play.

This clause serves as a provision in an agreement, stipulating that buyers buy a property from the seller as it stands, indemnifying the seller against claims for damages, whether patent or latent.

This clause is, however, not applicable to developers, investors or speculators.

One would have recourse if it can be proven that the seller knew of any faults which were not disclosed.

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