Home Warranty

Is a Home Warranty worth the money you pay?

home warranty against defects

A new way to “protect” home buyers and enrich insurance companies is available in South Africa in the form of a “home warranty” which will protect home buyers against future defects for a period of 2 years!

The “Voetstoots Clause”

Thousands of homes are sold without any guarantee that the homes are free of defects. These homes are all older homes sold with the “voetstoots” clause in the “offer to purchase”. The Consumer Protection Act does not protect you, the buyer, in this case. Selling his home is not the seller’s normal course of business.

The seller’s disclosure is required to declare all known defects. Can you trust that document?

I would not!

You have to prove that the seller was aware of the defects and did not disclose them!

The defects could be maintenance issues or latent defects that the seller knows about, but that is hidden from view. Such defects can cost a lot of money to fix. Furthermore, the legal process is expensive and frustrating if there’s any doubt that the seller did not disclose known defects.

About the home warranty

An insurance company is offering a “home warranty” to protect you from issues and defects for a two year period. In addition, the premiums are determined on an individual basis according to the insurer. However, the cost of this home warranty apparently ranges from R12,000 for a one million Rand home to R28,000.00 for a five million Rand home!

The seller can include the cover as a feature of the sale, or the buyer may insist upon the home warranty as a condition of the sale. In both cases, payment for the warranty forms part of the offer to purchase.

There are costs like certificates of compliance, levies and rates clearances, bond cancellation fees and the estate agent’s commission on the sale that all come off the selling price. Then there are the costs the seller has of buying a new property and moving to it as well!

I can only wonder how many sellers will want to cough up such a large amount of money?

Which leaves you, the buyer, to protect yourself by buying into the home warranty!

But what does the “home warranty” work and protect you against?

Apparently, the key benefits of the home warranty are a cover against:

  • Roof, structure or workmanship defects.
  • Defects with foundation design, structure or workmanship.
  • Faulty electrics, plumbing, drainage, sewerage and gas installations.

If you will have a bond on the property you want to buy, your bank will insist you have a homeowner’s insurance. Furthermore, except for the foundation and structure, a homeowners insurance will cover most of the defects mentioned above. This includes flood water or storm damage to the structure.

In addition, the insurer’s home warranty includes a property inspection beforehand!

Why buy a home warranty?

A home warranty will provide a professional inspection report that lists any exclusions or defects so you know what you are dealing with when it comes to negotiation time.

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INSPECTOR HOMES is now THE HOME DETECTIVE

INSPECTOR HOMES is now THE HOME DETECTIVE

HOME DETECTIVE

THE HOME DETECTIVE was INSPECTOR HOMES

“A rose by any other name would smell as sweet” is a popular reference to William Shakespeare’s play Romeo and Juliet.

I have had to change the name of my business because of threats of legal action. INSPECTOR HOMES is apparently too close to the name of a home inspection franchisor. He and his franchisees believe the name INSPECTOR HOMES was taking business away from them. Little do they realise that it is not a name that makes the difference but the excellent SERVICE that I provide. However, on legal advice and to avoid unnecessary and expensive litigation INSPECTOR HOMES is now no longer!

Different name but still the same GREAT SERVICE! 

inspector homes

Jurie Fourie – THE HOME DETECTIVE

Certified Member of the  International Association of Certified Home Inspectors (InterNACHI)

Contact Me For A Quote

Inspected once, Inspected Right!®

THE HOME DETECTIVE » Property inspector » Page 2

Why You Should Have A Home Inspection

The importance of a home inspection

house inspection and protection

Imagine what can happen if you don’t have a house inspection as protection when you buy a new home. Defects you didn’t notice and latent defects like a roof leak can cause your dream home to become a nightmare!

A Buyers House Inspection or Pre-purchase Comprehensive Property Inspection

Be wise, have a home inspection!

A buyer’s house inspection is your protection against the ‘voetstoots’ clause. A Buyer’s Inspection report is a written account, with photos, of the condition of the property. As a result, it will tell you about any significant building defects or problems. This can be defects such as rising damp, movement in the walls (cracking), safety hazards or a faulty roof etc. You would have this done as part of your condition of the sale so you can identify any problems with the property which, if left unchecked, could prove costly to repair.

Why do you have a house inspection?

  1. Protection against the voetstoots clause in your Offer to Purchase
  2. You will know in advance what the problems are.
  3. Therefore, you may be able to negotiate a lower price for the property. You may have to pay to repair some of the problems.
  4. You also get specialist advice about any major problems and maintenance issues which may affect the property over time.

Get a FREE Quote NOW!

 Inspected Once, Inspected Right!®

SEE WHERE I INSPECT IN GAUTENG!

THE HOME DETECTIVE » Property inspector » Page 2