Purchasing
Your New Home
We have put together a guide to
assist you in the purchase of your new home.
Your “Dream” Home?
Very few people can afford their “dream” home immediately.
When looking at facts of a home ownership be realistic about what
you would like and can afford. Have flexibility to buy what you
would like and can afford now as the first step in obtaining your
“dream” home…the home you consider today as a
“dream” home may not be the one you might select five
or ten years from now. The path of the “dream” home
is one of growth and learning. Acquiring what one could afford and
refining the ideas of the “dream” home is part of the
process. Whatever your “dream” home might represent
to you, starting with what you can afford, is a surer route of obtaining
it.
Advantage of Buying a Resale Home
You see what you are getting – condition, plot, present character
of the neighbourhood.
What is included in the price – curtain rails, light fixtures,
fences, etc.
How the plot relates to adjacent properties
The proximity of neighbouring houses.
Completed and ready for you to occupy and enjoy.
Amenities – types, distance, etc.
When you find the right property, we’ll assist you in preparing
an offer to purchase.
Making an offer
Making an offer to purchase is the first step in a legal contract
and should contain very clearly everything you can or intend to
do; and exactly what you expect to receive…this is where we
can be of assistance. We will ensure the offer accurately reflects
your intentions, all details are correct, correctly identified property,
mortgage information properly stated.
We have a standard offer form, which contains pre-printed standard
clauses as well as the inserted information. Once you understand
the offer and are certain it states everything you wanted stated…then
it can be signed. Once signed you have taken the first step to owning
a home. (A copy of the agreement of sale is attached. Kindly read
through the contract and familiarise yourself with the contract,
once a contract has been signed it is a binding agreement and subject
to the laws governing it.)
Extras
When your “Offer to Purchase” is being prepared –
be specific! Avoid misunderstandings. If you wish substitutions
or/and any unusual extras include them in detail. Being clear and
specific at the outset can save time and possible complications
later.
Transfer Costs and Cash Costs
These expenses are one of the most overlooked and unexpected features
of buying. This is the difference between the bond and the purchase
price and your required cash down payment.
Firstly
Seller’s adjustments. This is simply paying back the vendor
for such things he has already paid for – rates & taxes,
insurance, etc.
Secondly
Bond costs if you are arranging a new mortgage – valuation
fee, legal fees.
Thirdly
Legal fees and disbursements which include your lawyer’s services,
expenses for registration fees, transfer duty, taxes, title search,
etc
Legal/Closing Costs
Once you have made the decision to purchase a home, you will need
to determine the amount of money required to close the deal. In
addition to the down payment on your new home, you should expect
to pay 8% of purchase price in transfer costs and adjustments for
a resale home. Examples of some of these costs are:
Interest Adjustment
Most banks prefer mortgage payments to fall due on the first of
the month. Trust companies and some banks will calculate the interest
from the closing date to the first of the next month and deduct
it from the mortgage advance. If your closing date is early in the
month, this amount could be as much as R1, 000 on a R150, 000 bond.
Mortgage Valuation Fees
A valuation fee is usually charged when you apply for a mortgage.
Points to consider when viewing
BUYERS BEWARE – There is a voetstoots clause in the agreement
of sale, make sure your inspection is through and to the point.
Example: Do the taps work – toilets flush – any cracked
windows etc. Remember now is the time to check not after signing
the contract as faults need to be listed at the time of signing.
Explaining 72-hour clause
A 72-hour clause is added to a deed of sale when there are suspensive
conditions these can be:
- 100% bond plus costs – this means that the buyer wishes
to include the costs in the purchase price. Bank approval has
to be gained first, should the bank not approve the costs the
client either has to pay cash for the costs or the sale becomes
null and void.
- Successful sale of property – the deed of sale is subject
to the successful sale of the buyer’s property.
- Should there be a 72-hour clause on an offer that has been
accepted by the seller, the seller is entitled to accept other
offers on the property. Should any of other offers (that is any
offer received after the initial offer) become final (bond approval
is received) the previous purchaser (the first offer) is given
72 hours to meet all suspensive conditions
Addendums
Any other addendums should be given in writing and not done verbally.
Addendums can cover a wide range of clauses. The most common addendum
being the one that refers to fixtures and fittings or any work or
repairs that needs to be done.
A guide to assist you in
the purchase of your new home Working
With A Realtor | Handy Moving Checklist Tips Information
Guide to Conveyancing | International
Buyers
Caution: While every effort has been
made to ensure that the information contained in this article is correct, Realtors International Shelley Point will not be liable for any loss suffered by any person due to
any error in the article.
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