Buying a home, hustle-free

Are certain estate agencies operating outside the law?

This has been asked by two residents, both of whom reported to the Advertiser their horror stories, when attempting to purchase property this year.

Both spoke out, but remained unwilling to divulge their names.

The first resident spoke on behalf of his father, who went through hell and high water after selling three properties through a local estate agency.

Problems began when he was not paid out fully for the sale.

After investigations by the father and son turned up more questions than answers, the matter was reported to the Estate Agency Affairs Board (EAAB), who stated the agency had not been registered for a number of years.

“We were shocked to hear of this, because any property the agency has sold is simple fraud.”

The second resident said she had opened a case with various authorities, after purchasing the dream home transformed into a nightmare.

She believes the problem is residents who think the agency is in their corner.

“In this case, no one assessed the house from the rear. We saw it looks pretty but there were hidden problems.”

With the value decreased since discovering problems such as rot in the ceiling and more, and the payment already through, the resident also contacted the EAAB.

Employees for the EAAB stated this agency was also not registered.

“All estate agencies have to have a Fidelity Fund Certificate,” explained a representative of the EAAB.

While a quick search on the EAAB website can show the certification, or lack thereof, of an agency, the employee said it was possible applications were pending.

However, agencies can be reported to the board, even if unregistered.

“We exist to protect – visit www.eaab.org.za to log a complaint.”

In light of the above incidents, and potentially others unreported, Mohamed Seedat from Remax explained any home seller had to list and disclose any problems with the property for sale.

This forms part of a legal document.

He continued to say the terms, latent and patent defects came into play – patent defects are those revealed by inspection and ordinary vigilance from the purchaser, while latent defects are not immediately identifiable when entering into an agreement.

Mr Seedat added the Consumer Protection Act was created to protect a person buying property.

“However, when buying cash, the risk is yours.”

Noting the typical voetstoots clause, Mr Seedat pointed out the purchaser would be entitled to cancel the contract or sue, if the seller knew of defects and chose not to disclose them, or if the latent defects are so serious the buyer would not have bought, if known about.

Thus, the voetstoots clause does not take away the liability of the seller.

“In such an instance, the seller may be called upon to refund part of the buying price, or even accept cancellation of the entire sale.”

In terms of reporting fraudulent or illegal activity by an estate agency, visit the EAAB website listed above or call 080 022 3225.

This will allow the board to begin investigations.

Another alternative for residents having problems with their landlord, is to visit www.kwazulunatal.gov.za and speaking with the Rental Housing Tribunals.

Finally, residents can contact the National Consumer Commission for assistance.

The Commissioner, Ebrahim Mohamed can be reached at E.Mohamed@thencc.org.za, call 012 761 3000 or visit www.thencc.gov.za