Buyer’s Checklist
The following is a basic checklist which you as Buyer can use as the transaction progresses to ensure you have done the necessary from your side:

• Have you applied for a bond and has it been granted? If so, have you advised the conveyancer of the name of the bond attorney?
• Have you paid the initial deposit on the purchase price timeously and ensured that it has been invested in your favour?
• Have you provided your conveyancer with your FICA documents (proof of residence, a copy of Identity document and Income tax number)?
• Have you provided the bond attorney with all their requirements?If applicable, have you advised the conveyancer of how you intend paying the balance of the purchase price if not secured by a bond?
• Have you signed the bond and transfer documents?
• Have you paid the bond and transfer costs?
• Has the purchase price been paid or secured by the due date?
• Have you paid occupational rent in accordance with the Sale agreement?
• Have you arranged to open Municipal accounts in your name / transfer the Eskom account (as applicable) into your name?

Bringing it all together
Having a basic understanding of what to look out for in the Offer to Purchase, being aware of the costs and knowing what to expect when the Transferring and/or Bond attorneys contact you, will go a long way in ensuring a smooth, hassle-free experience when buying a property. Knowing more or less how long the transfer process will take, will also facilitate your move and allow you to plan ahead of time, rather than at the last minute.

Authoress: Conveyancer – Marlene Heppes

SABWil Conveyancing: the First-time Buyer

Part 4 – Occupation date and Registration

Occupation date
The closer the transaction gets to lodgement stage, the more relevant your chosen occupation date becomes. If you have chosen the date of transfer as the occupation date, you can start planning your move / give notice on your lease where applicable as soon as all the bond and transfer documents have been signed and you have paid the Pro Forma Costs. The Transferring attorney should be able to give you an estimated date of transfer, which will allow you to plan accordingly. You can also at this stage agree upon a mutually acceptable occupation date with the Seller, which should make planning your move easier.
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Registration: what now?
As soon as the transfer has been registered, the transferring attorney will provide you with a Final Statement of Account, which may differ slightly from the Pro Forma Statement. If you had paid a deposit into the attorneys’ trust account at the beginning of the transaction, they would have invested it in an interest-bearing account for your benefit, and this interest will be paid to you after transfer. Once the Deeds Office records have been updated with the change of ownership, the transferring attorney will also provide you with a Registration letter which includes copies of the rates clearance figures and proof of payment thereof. You will need to submit this letter and annexures, together with a copy of your ID to the Local Municipality in order to open a new Rates and Utilities account in your name. If you have bought in a Section Title or Cluster Complex, you will also need to open Levy accounts with the Body Corporate or Homeowners Association.

Authoress: Conveyancer – Marlene Heppes

SABWil Conveyancing: the First-time Buyer

Part 3 – The Transferring and Bond Attorneys and the Deeds Office

The Transferring and Bond Attorney
ImageThe transferring and bond attorneys are two different sets of attorneys who will contact you and request certain documents and information – usually your ID, proof of residence, income tax number, marriage certificate (if you’re married) and ante-nuptial contract (if applicable).

You will need to sign documents relating to the transfer, home loan and bond respectively, and both attorneys will give you their Pro Forma Statement of Account which is payable before the documents are lodged at the Deeds Office (except when the bank has included legal costs in the loan amount). Transfer Duty (due on sales above R750,000.00) will however always be immediately payable, as the transferring attorney needs to pay this amount over to SARS, who will issue a Transfer Duty Receipt, which has to be lodged at the Deeds Office.

The Deeds Office
Once all the bond and transfer documents are signed, the full purchase price is secured (by cash deposit into the Transferring attorney’s trust account or Bank guarantee) and the Rates Clearance Certificate and Transfer Duty Receipt are issued, and for Sectional Title Properties, once the Sectional Title Insurance Certificate and Levy Clearance Certificate are issued as well, the transaction should be ready for lodgement at the relevant Deeds Office. The Bond attorney and Bond Cancellation attorney (where the Seller has a bond/bonds registered over the property) will first need to obtain the Bank’s permission to lodge, which can take up to 2 weeks from submission to the Bank of all the required documents. The turnaround time for registration in the Deeds Office is approximately 2 weeks.

Authoress: Conveyancer – Marlene Heppes

SABWil Conveyancing: the First-time Buyer

Part 2 – Legal Costs and Applying for a Bond

Costs
In addition to the purchase price of the property, there are legal costs payable to the transferring attorneys and bond attorneys (if you are taking up a home loan to cover the purchase price or part thereof). Transfer duty, which is a tax payable to SARS, is also payable where the purchase price is more than R750,000.00. First-time buyers will usually be granted 100% bond, ie wouldn’t need to put down a deposit on the property, and under certain circumstances, some of the banks may even include legal costs in the approved loan amount.

Before deciding in which price-bracket you can afford to buy, you need to also take the legal costs into account, to avoid later disappointment and/or delays.

Applying for a bond
Most estate agents work closely with mortgage originators, who apply for finance on your behalf to a number of banks. Documentation which the banks/mortgage originators will need from you includes your ID, payslip, bank statements and an income statement. The mortgage originators are there to facilitate the home loan application and you won’t need to pay them a fee: they have commission agreements with the banks. It is usually beneficial to make use of the services which mortgage originators offer, as they know the banks’ requirements well and are often able to negotiate better interest rates on your behalf.

Authoress: Conveyancer – Marlene Heppes

SABWil Conveyancing: the First-time Buyer

Part 1 – Introduction and Signing the Offer to Purchase

First-time Buyer? Don’t panic!
Buying a property for the first time can be daunting, but it needn’t be a stressful experience. It helps to have a basic understanding of the conveyancing process, however, so that you are prepared to provide the transferring and bond attorneys with certain information or documentation when called upon to do so.

However, let’s start at the beginning of the property transaction, namely the Offer to Purchase.

Signing the Offer to Purchase
It is very important to read through the Offer to Purchase thoroughly and understand the implications of the different clauses before signing it. The Offer to Purchase is a legally binding document with consequences for the Buyer and, once accepted, also for the Seller. If any of the clauses in the agreement are unclear, you should feel free to ask the Estate Agent to explain them, or even obtain independent advice.

Remember: if there is anything specific in the property which you want the Seller to attend to as a condition of your Offer, you need to ensure that this is clearly stipulated in the agreement. There will usually be a clause with the heading “Special conditions” or something similar, most often towards the end of the document, where you can insert additional conditions.

Authoress: Conveyancer – Marlene Heppes