Before signature of an Offer to Purchase the purchaser should verify the following:

• The purpose for which your property may be used, for example, residential or business as deemed by your local authority. Afrikaans - Sonering
  ">Zoning and allowed usage of the property.
• Valuation of the property.
• Restrictive or onerous A clause that renders the operation and consequences of the contract as a whole dependent on an uncertain future event. A suspensive condition suspends the operation of the contract for a period of time, subject to the occurrence of a future event, and only if and when the condition has been fulfilled will an enforceable contract exist. In the case where a resolutive condition is stipulated, the contract is immediately binding and will remain binding unless the condition is not fulfilled. Afrikaans - Toestand
  ">conditions on the property.
• A contract whereby the landlord allows the tenant temporary use of a dwelling, in return for payment, known as rent. Afrikaans - Huurkontrak
  ">Lease agreements, duration and current rental income of the lease if applicable.
• A lease will have preference over the sale of the property.
• Current Levies,  Special Levies, Taxes, Municipal Rates.
• Costs of acquiring and transferring the property.

Entering into a binding A legally enforceable agreement, for example a lease or sale. Afrikaans - Kontrak

">Contract of sale.

Once signed by both the Purchaser and Seller the Offer to Purchase becomes a binding contract (Also referred to as the Agreement of Sale or Offer to Purchase. Afrikaans - Koopkontrak

">Deed of Sale). Usually the purchaser makes an offer to purchase, which offer to purchase on written acceptance becomes a binding contract between the parties. Click here to download a free comprehensive offer to purchase with a discussion and explanation of the basic conditions of an agreement of sale of fixed property. The contract must be in writing and signed by both the seller and purchaser to be valid and binding. Once signed the deed of sale must immediately be faxed or delivered to the conveyancing attorneys (Appointed by the seller to attend to the transfer of the property into the name of the buyer. Afrikaans - Oordragprokureur

">transferring attorneys). Click here for a list of information and documents that must preferably be supplied to the conveyancing attorneys with the deed of sale.

Payment of Money you have readily available that you use as part of the payment on your new property. When renting property, a deposit is an amount that you pay upfront and is used as security in the event that you cause any damage to the property while renting it. Afrikaans - Deposito

">deposit, securing balance of the purchase price and investment of deposits.

The purchaser pays the deposit (if applicable) to the conveyancing attorneys on demand or in terms of the contract. Depending on the amount the deposit or purchase price is invested with the written consent of the purchaser at a Financial Institution. The interest usually accrues to the purchaser.

Applying for Finance from a financial institution. (Bond origination or directly through your financial Institution).

If the contract is subject to the purchaser acquiring finance the purchaser applies for finance in person or through the use of a An agreement between the customer and a bank in the form of a homeloan, whereby the property is used as the security for the loan. It is a legal document that pledges a property to the lender as security for payment of a debt. Afrikaans - Verband

">mortgage originator. Click here for the information and documentation needed to apply for finance or if we need to assist you in this regard. The financial institution grants an approval in principle (A.I.P), values the property and instructs the bond attorneys.

Applying for Outstanding amount on the mortgage, interest and any other costs required to settle the mortgage bond. Afrikaans - Kanselasie Syfers

">Cancellation Figures

The transferring attorneys apply for cancelation figures from the Sellers current bondholder (if any). It is essential that they have your bond account number to do this. Take note that in some instances early termination penalties may be payable.

Valuation of the Property.

The buyer's Bank sends out a valuator to assess the value of the property, the buyer intends to mortgage. The Bank may also require that the property be inspected for beetle infestation (coastal properties).

Obtaining an A certificate, which is issued by a qualified electrician stating that the electricity installation for a property, from its supply point, is safe according to the Occupational Health and Safety Act. The cost of this and any electrical repairs that need to be made are for the seller’s account. It is legally required in order for the property to be transferred into the purchaser’s name. Afrikaans - Elektriese Compliance Sertifikaat

">Electrical Compliance Certificate.

The Seller must obtain an Electrical Certificate of Compliance, and supply it to the Transferring Attorneys. The Financial Institution that grants the new Bond over the property will also require such an certificate.

Final Grant of Finance

The buyer's home A sum of borrowed money (principal) that is generally repaid with interest. Afrikaans - Lening

">loan is granted, subject to the valuation and credit approval the Bank advises the Bond Attorneys to register a Bond Panel Attorneys discussion.

Request rates Issued by the relevant authority stating that the rates or levies for the property have been paid up to a future date. Afrikaans - Klaringsertifikaat

">Clearance Certificate.

The Transferring Attorneys also request a Clearance Certificate for the Taxes are levied on all property owners by the municipality. Rates are included in the levy if you buy Sectional Title. They are payable on a monthly basis and are calculated as a percentage of the value of the property. Afrikaans - Eiendomsbelasting

">Rates and Taxes from the Local Municipality.

Drafting Transfer Documentation.

The Transfer documents are then drawn up by the Transferring Attorneys once all the information in steps 9 & 10 is obtained. The Transfer Documents include:

• The A tax levied by the government on the transfer of land. If the purchase price includes VAT no transfer duty is payable. Afrikaans - Hereregte
  ">Transfer Duty or VAT application to the South-African Revenue Service.
• The Rates & Taxes Clearance Certificate. (from the Local Municipality) or the Levy is the owner of a sectional title unit’s proportionate share of the costs incurred by the complex for the month. Afrikaans - Heffing
  ">Levy.
• Clearance Certificate (from the Body Corporate).
• The Consent of the Bondholder (Bank which holds the current bond) to cancel the current bond.
• Consents required in terms of conditions in the A document that gives evidence of an individual's ownership of property. It includes the following information about the property: names of the current and previous owners; a full description including it’s square meterage; the purchase price paid by the existing owner; all conditions restricting the use; and all limited real rights registered. Afrikaans - Titelakte
  ">Title Deed (i.e. a right of first refusal waived by the interested party).

 Requesting Guarantee A formal letter issued by a financial institution to the transferring attorney, undertaking to pay the purchase price (or outstanding amount) on registration of transfer of the property into the name of the buyer. Afrikaans - Waarborg

">Guarantees

The Registering (Bond) Attorneys advise the Transferring Attorneys of the amount available for guarantees (the amount of the new bond over the property). The Transferring Attorneys then advise the This attorney attends to the cancellation of the seller’s bond and is appointed by the bank, which holds the current mortgage bond.  Afrikaans - Verband Kanselasie Prokureur

">Cancellation Attorneys to cancel the seller's bond, which is done upon receipt of the guarantees.  Once the Transferring Attorneys receive the Title Deed and Cancellation Figures from the seller's bank, they send a copy of the Deed of Transfer and guarantee requirements to the Registering (Bond) Attorneys.
 

Payment of Costs payable for the registration of a property and include transfer duty, conveyancing fees, and registration fees. Afrikaans - Oordrag Koste

">Transfer Costs.

Transfer Costs, with which the Transferring Attorneys pay the Rates and Taxes and Transfer Duty to the Receiver of Revenue and a Transfer Duty Receipt is issued. Click here for an quick calculation of Conveyancing Fees or Click here to request a written conveyancing Quotation.

 

• Signature of Bond Registration Documentation

The buyer's Bond Account and Supporting Documentation are prepared by the Registering (Bond) Attorneys.

Signature of Transfer Documentation.

The Purchaser and Seller sign the Supporting Documentation and pays the Bond Registration Costs to the Registering (Bond) Attorneys. The Transfer Documents are signed by Purchaser and Seller, with the Transferring Attorneys.

Guarantees

The necessary guarantees are prepared by the Registering (Bond) Attorneys and forwarded to the Transferring Attorneys, who prepare the bond documents for The act of handing in the necessary documents at the Deeds Office for examination and registration of transfer. Afrikaans - Indiening

">lodgement with the A government department responsible for the registration of transfer of immovable property. Afrikaans - Aktekantoor

">Deeds Office. The Transferring Attorneys then forward the guarantees to the Cancellation Attorneys, who get consent from the Bank (which currently has a bond over the property), to cancel the Seller's Bond.

Lodgement and Tracking in the office of the Registrar of Deeds

Once all the documentation is signed and all the costs are paid, the buyer's new bond documents, the transfer of the property (into the buyer's name) documents and the cancellation of the seller's bond documents are prepared by the respective attorneys and lodged in the Deeds Office - simultaneously.

The Registration Process in the Deeds Office

The Deeds Office takes approximately 7-10 working days to check all the documentation before they are ready for registration by all the attorneys on the same day.

• Preparation (Prep).
• Registration of the documentation in the office of the Registrar of Deeds on Registration.
• Payment of Guarantees and Final Statement of Account.

The Bank pays out the loan in accordance with the guarantees issued and the estate agent is paid the See Professional Fee. Afrikaans - Eiendoms Kommisie

">commission.

For further information or to book a consultation please contact us on:

Telephone: 087 0010 733
Cell: 0828805646
E-mail: convey@@louwrenskoen.co.za
Website http://www.louwrenskoen.co.za

Louwrens Koen Attorneys
311 Eastwood Street, Arcadia, Pretoria, Gauteng, South Africa

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