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Protecting property buyers and sellers from implications of defects

Protecting property buyers and sellers from implications of defects

Private Property South Africa
Hollard

A home warranty can address the challenges of purchasing a home with defects.

Every year thousands of homes are traded between buyers and sellers without any guarantee that such property is free of defects. The defect could be a hidden flaw or weakness that a seller knows about, but the buyer cannot discover through reasonable inspection. Such defects can cost a fortune to fix, not to mention an expensive and frustrating legal process if there’s any doubt that the seller did not fully disclose known defects.

A Home Warranty addresses these challenges, providing the buyer with the peace of mind and security that comes with a professional property inspection, coupled to an insurance policy that protects against the financial ramifications of any defects that may emerge in the property for two years after taking transfer.

Key Benefits

For buyers:

  • Peace of mind knowing that you can go into the deal with all your bases covered.
  • Protects your financial interests, which are almost always stretched to the max when buying with deposits, bond and transfer costs, municipal deposits, moving costs and so on. The last thing you need is unplanned bills to fix hidden defects.
  • If you do find your dream home albeit with a few minor problems, you won’t end up walking away from a great deal because you overestimate the extent of and cost to fix minor problems.

For sellers:

  • A home warranty makes your property instantly more marketable to serious buyers.
  • It bridges the trust deficit that exists in a property sale, speeding up the sale.
  • It can mean getting a higher price for your property - the buyer knows exactly what they are getting, and you’re less likely to be negotiated down.
  • You can choose to attend to any excluded or minor repairs beforehand and ensure maximum sale price for your property, or if you prefer to sell as is, you won’t overcompensate by bringing your price down further than what the cost of the repairs would be.
  • Protect all parties against any financial and legal comebacks related to defects.

To find out more about the product or get a quote, click here.

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