ACCEPTANCE OF YOUR OFFER JUST FIRST STEP ON JOURNEY
FOR NEW buyers who have had an offer to purchase accepted, there are still a number of steps that need to be taken before they can settle into their new home.
Gerhard Kotzé, managing of the Realnet estate agency group, says these include:
Getting your finances in order:
Your bond may cover the whole purchase price of the property but you are also going to need cash to pay the bond registration fee, legal fees, transfer fees and any transfer duty that may be due. You will also have to pay half of the expected municipal rates and taxes for the transfer period, which is usually about three months, although you may get some or all of this amount back when the property is transferred. After that, you will need to pay for municipal services, such as water and electricity, to be connected in your name.
Obtaining additional insurance:
Your lender will certainly insist that you obtain homeowners’ insurance to cover the repair or replacement of the property in the event that it is damaged or destroyed by fire, wind, flood or other natural disaster. Many banks will also insist that you take out credit life insurance (bond cover) to the value of the outstanding home loan balance.
Responding to requests:
You need to respond promptly to requests from your bank’s attorneys or the attorneys attending to the property transfer to sign all the documents that are required to register a new bond and get the property registered in your name. Long delays or failure to respond can result in the sale being cancelled and you having to forfeit any deposit paid.