Throughout the process of house hunting, it’s easy to overlook important drawbacks whilst admiring the charming aspects of a new home.
Buying property can be one of the most important purchases you will ever make, so be prepared and have a plan before diving into the thrill of house hunting.
The first thing you need to do is to decide how much you can afford. You will need to look at how much money you have available yourself and how much you can borrow.
New property buyers are sometimes caught off guard when they start receiving calls and statements from different attorneys who are involved in the transfer and registration process of the property.
Keep in mind that there are additional costs which are not included in the purchase price such as:
To help you keep on track, list some of the most important things that you are looking for in your future home:
It is important to choose your top five or three must-haves.
Once you are viewing a few properties, all sorts of charming features are bound to sway you, and your list can help you stay on track.
It’s the responsibility of the buyer to find out what the costs are regarding the rates, taxes and levies charged to the prospective new home owner.
Unfortunately, many new home buyers do not know what sectional title ownership involves, and the restraints and obligations it imposes. It is only after they move in that they wish they had conducted a thorough due diligence of what they were buying into.
A professional estate agent can assist a buyer in determining the future costs of the property including levy rates, the size and the age of the property which could have a direct influence on structural maintenance in future.
Before signing the Offer to Purchase, read every detail as to what the sale includes and what duties are imposed on the seller or the buyer.
What is the amount of the occupational rent?
What date will occupation be taken?
Is the sale subject to vacant occupation?
What date is transfer scheduled?
Is the Exclusive Use Area (Parking Bay) (Garden) (Garage) included in the property description?
What is the consequences and costs of cancelling the sale by either party?
What certificates need to be obtained prior to registration? (Electrical, gas, or beetle certificates)
Please do note that an Offer to Purchase is a very important legal document that needs to be in writing and which has legal consequences.
If you do not understand the contents of the Agreement, it is within your right to ask for legal assistance before signing on the dotted line.
Another very important cost to consider is one which applies to existing homeowners with bonds and who have the intention of selling as well. Please do make reference to the “cancellation clause” in your Home Loan Agreement.
Banks have a 90-day cancellation clause, meaning that if you don’t cancel your bond in time, you will unfortunately incur pro rata cancellation penalties when selling.
If no notice has been given by a seller to his or her bank, the bank will regard the request for cancellation figures by the Bond Cancellation attorneys as a cancellation notice letter.
The penalty fee will then be reduced depending on the period of time taken to register the transfer of the property. This means that if the transfer is registered on day 60 of the 90-day notice period, the penalty will be reduced by two thirds and if registered on day 90, the charge will be nil.
In certain cases, sellers can also request for registration to take place only once the 90-day notice period has expired in order to avoid the penalty costs.
Please do not hesitate to contact Velile Tinto Cape Attorneys. We have many years of experience in and can offer excellent referrals to award winning Estate Agencies and legal advice with respect to any property related query, no matter the complexity.
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