From solar leases to Eskom accounts, the fine print of property transactions can trip up even the savviest buyer or seller. Here’s Harris Marcus Mahlangu Attorneys on what to watch out for.
Property sales rarely unravel over obvious faults. More often, it’s what goes unseen – overlooked clauses, undisclosed defects, or unnoticed technicalities – that cost you time, money, and your peace of mind. Harris Marcus Mahlangu Attorneys (HMM), a boutique all female firm on the Pam Golding Properties panel, has built a reputation for spotting these silent deal-breakers early. Their proactive approach helps buyers, sellers, and agents manage risks before they turn into costly problems.
Here are seven of the most common pitfalls they see, and why choosing the right lawyer makes all the difference.
01. DEFECTS AND DISCLOSURE
Every sale requires a Mandatory Disclosure
Form, where sellers must declare defects they actually know about. The voetstoots clause still applies, but hiding serious flaws – even latent ones like damp – can lead to claims long after transfer. Sellers risk legal action, buyers risk disappointment, and agents risk reputational damage if disclosure isn’t handled correctly.
02. MARITAL STATUS: AN OTP MINEFIELD
Names and ID numbers must be precise on an Offer to Purchase, but marital status matters just as much. Marriage or divorce during the process can delay – or even collapse – a deal. Thinking ahead about what your marital status will be at signing and at registration is crucial.
03. THE FORGOTTEN BOND
It isn’t just buyers who need finance approvals. Sellers often overlook their own bond obligations. If the sale price doesn’t cover what’s owed (plus commission) a bank’s acknowledgement of debt may be required. Miss the 90-day bond cancellation notice, and penalty interest can quickly erode your proceeds.
04. BANK APPROVALS WITH HIDDEN STRINGS
A bond approval may look straightforward, but banks often attach suspensive conditions. A requirement for zoning compliance, for instance, could derail a deal if the seller can’t provide it. These hidden strings can leave all parties arguing over responsibility as deadlines expire.
05. ELECTRICAL CERTIFICATES
An Electrical Certificate of Compliance is essential for transfer, yet sellers often trust an electrician’s word without verification. If the certificate proves invalid post-transfer, buyers may be saddled with bills and no recourse. Buyers are wise to have their own electrician verify or witness the inspection.
06. SOLAR SYSTEMS
Solar installations add value, but not always certainty. If panels are leased rather than owned, buyers can inherit unexpected monthly costs or discover the panels removed after transfer. Unless the lease is disclosed in the OTP, disputes are inevitable.
07. THE ESKOM ACCOUNT TRAP
Unlike municipal rates, Eskom offers no clearance certificate to prove accounts are up to date. Without specific protection in the OTP, buyers could inherit unpaid charges or delayed transfers. The safest course is to require sellers to settle all Eskom charges, with attorneys requesting the latest account before transfer.
HARRIS MARCUS MAHLANGU
ATTORNEYS | NOTARIES | CONVEYANCERS
