What you need to know about buying a house

What you need to know about buying a house

If you're planning to buy a house in the near future, these expert tips and overview of costs can help you prepare for buying property.

Q: By when and in what way do I secure the purchase price?

A: The Offer to Purchase will stipulate the time period within which you will have to secure guarantees (the full purchase price). If you are paying cash, you may ask your bank to issue a guarantee in favour of the transferring attorney. If you have obtained a final bond grant, the bank's appointed attorney will issue guarantees to the transferring attorney after you have signed the bond documents.

Q: What legal costs am I liable for? A: Transfer costs. The transfer costs must be paid to the transferring attorney directly after signature of the transfer documents. The attorney attends to the change of ownership on your behalf. Bond costs. The bond costs must be paid to the bond attorney directly after signature of the bond documents. The attorney registers a bond in favour of a specific financial institution in order to secure your purchase price.

Q: Do I have to pay SARS anything?

A: Transfer duty is payable when you purchase a property for more than R 750 000. The transferring attorney requests payment of the transfer duty with the transfer costs, after which they will make payment to SARS in order to obtain a transfer duty receipt necessary for successful registration. SARS will ensure that all parties (seller and purchaser) as well as estate agent’s taxes are up to date after which a transfer receipt will be issued to the transferring attorney.

Q: What documents do I have to send to the Estate Agent and transferring attorney when purchasing a property?

A: A copy of your identity document. FICA documents (municipal statement, not older than three months, alternatively any account reflecting your physical address). SARS reference number. Ante nuptial contract or marriage certificate, if applicable.

Information courtesy of CBI Attorneys and Conveyancers.