Quick reference points:
- Always ensure that you are dealing with a duly registered, qualified agent
- Transfer costs payable to the transfer attorneys is determined by the purchase price of the property, which amount includes transfer duty payable to SARS.
- Even though no transfer duty is payable on properties selling for R750,000 and less, transfer costs are still payable to the transfer attorneys on these properties.
- Transfer costs (including transfer duty) and bond registration costs may not be included in mortgage bonds. These costs are payable to the transfer attorneys and bond registration attorneys before the registration of the property into your name.
- Make provision for a deposit payable to the town council for services to be delivered, as well as rates & taxes.
- Make provision for moving costs.
- Do a proper cost analysis of monthly costs on the property you wish to purchase (monthly bond premium, short term insurance premium, rates & taxes, monthly levies [where applicable, e.g. sectional title complexes, full title estates, golf & other estates], water & electricity estimates, life insurance policy premiums) to ensure affordability.
- Ensure that you receive and sign a Property Information Document (declaration from the owner with regards to the property), indicating defaults on the property, items included and excluded, availability of building plans, and all other information relevant to the property. This Property Information Document must be included in your agreement of sale and all items to be repaired should be done prior to registration of the property onto your name to avoid disappointment.
- Your FICA documents (Identity documents and Proof of Address) are required when signing an offer to purchase on any property, according to the Financial Intelligence Centre Act (FICA), Act 38 of 2001. Different FICA documents apply for trusts and legal persons.
- Ensure that you thoroughly understand each clause in the agreement of sale which you will sign when purchasing a property. It is a binding legal document with terms and conditions, which could have legal implications should any of the parties to the agreement not fulfil the said terms and conditions of the contract.
- According to the National Credit Act (NCA), Act 34 of 2005, your monthly mortgage bond payment may not exceed 30% of your monthly household income amount.
- For more on mortgage bonds, refer to our quick guide bonds section.
http://www.mcvdberg.co.za/language/en/MCPurchasersGuide