Voetstoots
Beware the “Voetstoots” Or “As Is” Clause
How many prospective buyers are aware that they sign their rights away when they sign the “Offer to Purchase” agreement, which includes the “Voetstoots” or the “As Is” clause. This clause is designed to protect the Estate Agents in regards to the Consumer Protection Act.
According to the Law Society of South Africa, 98% of Estate Agents put this clause into their agreements, and the buyer is well within their rights to have it excluded from the “Offer to Purchase.”
It would be advisable to have a home inspection on your property as this will probably be the biggest purchase that you will ever make.
What you should get with a home inspection service:
- Peace of mind;
- An unbiased opion on the condition of the property;
- Photographic report plus a written report;
- Protection from unscrupulous sellers;
- Maintaining ethical and technical standards;
- To protect buyers and estate agents from unethical practices.
“Few would risk buying a pre-used car without an automobile inspection so why risk your life savings on a property that you can’t be sure about?
Source: Director of Affairs for South Africa
Always include a home inspection contingency in the Offer To Purchase and negotiate a contingency period with the seller.
An example of a home inspection contingency
“The Buyers’ offer is contingent upon a satisfactory inspection within _____ working days. Upon receipt of the results of such inspection, the Buyers may request in writing at any time within the agreed period that the Sellers make certain repairs or that the Sellers reduce the sales price to compensate for such defect(s). Such a request to repair or reduce the price does not terminate the contract and the Sellers shall have _____ days from receipt of such request to agree to make such repairs or reduce the sales price. If the Sellers do not agree, the Buyers shall have _____ days to waive the contingency and accept the property “as-is” or to declare the contract null and void. “
Note: In a typical residential property transaction everyone involved (electrician, gas installer, pest control, estate agent, seller, bank, transferring attorney) stands to gain financially, except the buyer. The property inspector is excluded from this list as the fee is not conditional to the sale, hence truly independent and unbiased.