April 16, 2018

Buying a new home? Here’s what you should know

Congratulations on the purchase of your new home! The process can be quite daunting, but when handled correctly the process can be easy.

First time buyers need to be certain that the property they purchase is the property they want. This is a long-term investment and not a decision to be rushed.

Affordability obviously plays a big role in deciding which home you will purchase. A pre-approved bond can be obtained from the bank to ensure the amount that will be financed by the bank in the form of a bond over the immovable property. This will also give you an idea of the monthly instalments and confirm whether you’re able to afford them. Please also keep in mind that additional expenses come with the purchase of new home. As the new owner, you’ll be responsible for monthly municipal rates, water and electricity and levies if there is a body corporate involved.

Consult your attorney or agent regarding all costs pertaining to the transfer of the property. Transfer costs, which includes transfer duty (if applicable), will be payable by the purchaser, who must ensure these costs are covered in order to finalise the transfer of the property.

As soon as the offer to purchase is signed, the purchaser can apply for a bond. If the bond is obtained within the prescribed period in the offer, the transfer can proceed.

A number of people and organisations are involved in the transfer process:

  1. Transferring attorneys, who attend to the transfer from the seller to the purchaser.
  2. Bond registration attorney if the buyer require a bond for the purchase price.
  3. Bond cancellation attorneys, if the seller has an existing bond, the cancellation of this bond will happen simultaneously with the transfer and registration of the new bond.

The required documents must be signed with each attorney’s firm and the relevant costs will be paid to each attorney attending to their part of the transfer.

The transfer attorneys will apply for rates and levy (if applicable) clearance figures in order to obtain the rates and levy clearance certificate (if applicable) which is lodged with the transfer at the Deeds Office. This serves as confirmation that all municipal rates and levies are up to date. This is for the sellers account. A pro rata levy calculation will be done for the purchaser’s account should the matter register before the date the figures expire. The rates refund will be attended to when the municipal account in the name of the seller is closed.

On payment of transfer costs, we submit information to SARS and pay transfer duty to SARS. You are exempt from transfer duty if the purchase price is R900 000 or less or if the sale is subject to VAT. SARS will issue a transfer duty receipt if all is in order.

When all of the above is in place, we can arrange for lodgement at the Deeds Office. All parties involved will co-ordinate for simultaneous lodgement and registration. Registration in the Deeds Office takes approximately 10 working days.

Now you can enjoy your new home!

 

Raullene Marais
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