PROCESS Understanding the buying process and all the fees you are in for

THE PROPERTY buying process can be stressful, with many role players involved at various stages.

First-time buyers should therefore know what to expect, says Hanno Bekker, founder and lead attorney at Bekker Attorneys.

He simplifies the process, and those involved in it, as follows: ¡ Once the bond is approved, you will be contacted by the transferring and bond attorneys to sign the necessary documents for transfer to take place.

¡ The seller will have to sign an affidavit, power of attorney and transfer duty receipt.

¡ The purchaser will have to sign an affidavit, transfer duty receipt and the bond documentation.

¡ The transferring attorneys will ask for the rates clearance from the municipality.

The bond attorney serves on the panel of the specific bank and is authorised to register the bond, while the transferring attorney registers the property in the name of the new purchaser, and applies for the transfer duty receipts and rates clearance.

Bekker says the transfer process can take three months or longer should there be nfrastructure problems.

However, if the property is vacant, the buyer can usually take occupation and pay occupational rent if the deed of sale makes provision for it.

The registration of the transfer and the payment of the bond amount are linked and will take place simultaneously in the Deeds Office.

Explaining why transfer fees are so “astronomical”, Bekker says different expenses need to be paid, and these include:

¡ Transfer duties to the South African Revenue Service for a property valued at more than R900000. ¡ Registrar fees to the deeds office. ¡ Rates clearance fees to the municipality.

¡ Conveyancer fees.

Unfortunately, Bekker says there is no specific amount that one can predict in advance for the transfer duties as the amounts differ every time and are based on the purchase price and value of the property.

He says at times, transfer fees can be added to the approved bond amount.

“Arrangements should be made with the transferring and bond attorneys to assist you in not exceeding the provision that was made for these fees.

“It’s up to the discretion of these attorneys whether or not they choose to assist you in this regard.”

Bekker says buyers can apply for a personal loan to cover transfer fees.

PICTURE: TOM RUMBLE SETTLING: The road to home ownership can be a lengthy one.