In the case of the development of new section titles (out of plan), the developer generally requires that the buyer move into the property as soon as the professional certificate is issued by the Council. The legality of the operating rent can become a contentious issue and cause administrative or legal delays in the conclusion of the sale and transfer of a property. To avoid this, try to pay for all the extras in cash and negotiate the professional rent only as a percentage of the original purchase price. The professional rental clause applies to purchases of title deeds and sections, whether you are buying a home from an individual or as part of a new unscheduled development. Trouble can be avoided if you and your real estate agent insist on a clause in the sale agreement that clearly sets the amount of operating rent to be paid and calculated. The professional rental clause contained in a sales contract is intended to ensure that the seller is compensated financially if the buyer moves into a property before registration and transfer, and vice versa. From a legal point of view, the buyer has no leg to stand on because the occupancy date and the amount to be paid in the operating rent were set in the sales contract. However, this will not help the seller in this particular case, because, as with any legal, not only does it take a lot of money to resolve such disagreements, but it also takes a considerable amount of time. Please note that these legal contracts and agreements are the norm. It is therefore advisable to seek legal advice when entering into the contract. Downloads are FREE and for only R100, R154 or R260 per month membership, you are entitled to professional legal advice, advice and guarantees. The seller is generally responsible for insuring the house until the transmission has taken place and leaving a property vulnerable to criminal activity because it is empty, could lead to huge claims. In other words, it is in the owner`s best interest to stay in the property until the transfer.
The buyer should share these concerns and arrange the move once the house is empty – even if it means he has to pay business-related rent – especially because the inconvenience of living without geyser, without a stove and other items, which are usually targeted by burglars, are also not a pleasant option in the short term. An important, but often overlooked, clause in a real estate purchase agreement is that of operating rent. Selling a property can be exhausting and the idea of a solid purchase contract is to make sure everyone is on the same side to make things work as well as possible. Clauses to minimize the consequences, if something goes wrong, protect both parties, but it can backfire if the provisions of one party have an impact on another party. We recently talked about professional rent and the importance of the right number.