FAQ

FREQUENTLY ASKED QUESTIONS

RELATING TO THE SALE OF A PROPERTY

1. YOU, AS THE OWNER HAVE THE RIGHT TO APPOINT THE TRANSFERRING ATTORNEY.

2. How do I cancel my existing bond?

The Bank where your existing bond is being held will appoint a cancellation attorney to attend to the cancellation of your bond. You must supply the transferring attorney with the details of your existing bondholder as well as the bond account number and also proceed to make your monthly payments after you have signed an Offer to Purchase.
The Bank (existing bond holder) will issue cancellation figures to the transferring attorney and if your payments exceed the amount issued by the Bank, same will be refunded to you after registration. NOTE: Please contact your Bank directly after registration to ensure the processing of your refund speedily.

3. Do I pay any penalty for the cancellation of my existing bond?

You have to give the Bank 3 months notice if you intend on cancelling your bond. If you don't, a penalty equal to 3 months instalments will be charged by the Bank and is included in the cancellation figures issued to the transferring attorneys. NOTE: It is advisable to provide your bank with the 3 months notice period immediately after you have put your property on the market. In other words after you have signed an exclusive mandate with an Estate Agent.

4. What if I have an access facility on my bond?

5. Is there any legal costs payable for the cancellation of my existing bond?

The transferring attorney requests your existing bond holder to issue cancellation figures. The Bank will appoint their own cancellation panel attorney to attend to your cancellation. The cancellation attorney is entitled to charge a cancellation fee. This fee is usually deducted from your proceeds alternatively payable by you prior to registration. The cancellation fee varies between R2 500.00 and R3 500.00.

6. Do I have to pay the Rates and Taxes on my property in advance?

You must supply the transferring attorney with a copy of your rates and taxes account. The transferring attorney applies for rates clearance figures from the Local Council where the property is situated. The figure will be issued for a period of 6 months in advance. Kindly insure that you make payment of the amount outstanding to the transferring attorney before the figures lapse. The transferring attorney ensures payment of the figures to Council in order to obtain the clearance certificate.

Same is necessary to ensure successful registration.

NOTE: You will have to query your account (if any) with Council prior to registration. If you are not able to make payment of the rates clearance figure as received by the transferring attorney, kindly request the transfer attorney to arrange for bridging finance. The transferring attorney will send documents to you issued by the bridging company for your signature after which the bridging company will make payment of the outstanding rates figures on your behalf. You also have the option to advance a portion of your proceeds before successful registration of your property in the new Purchaser's name. The same process as explained above must be followed. (Please discuss this with your transferring attorney)

NOTE: By signing the bridging document you authorize the transferring attorney to deduct the amount as per the rates clearance figure plus the interest and administrative charges from your proceeds. The transferring attorney provides you with a letter confirming successful registration of your property in the new Purchaser's name. You must present the abovementioned letter to the Local Municipality in order for your existing account to be closed.

The Municipality will start processing your refund as you will only be liable for the payment of rates and taxes whilst being the owner and not the full 6 months.

NOTE: The refund will only be processed after the deposit has been paid and the new account has been opened by the new owner. Kindly ensure that you obtain proof of the above (opening of account, payment of deposit) before occupation.

7. Do I have to supply the new Purchaser with an Electrical Compliance Certificate (ECC)?

You have to supply the transferring attorney with an ECC. A qualified electrician must inspect your property in order to issue an updated ECC. The ECC must not be older than 2 years. The ECC is also required by the bond attorney in order for the attorney to obtain a “proceed” from the Bank who granted the bond. The “proceed” is needed by the bond attorney prior to lodgement of the documents in the Deeds office.

8. Do I have to pay the levies on my property in advance?

You must supply the transferring attorney with the details of your Body Corporate, if your property is a sectional title unit or managed by a Home Owner's association.

The transferring attorney requests the clearance figures from the Body Corporate or Home owner's Association. The transferring attorney will advise you of same and also request payment thereof to their trust account. The transferring attorney ensures payment of the figure in order to obtain the clearance certificate.

NOTE: Kindly attend to any problems you have with the Body Corporate or Home Owner's Association before registration.

9. What if I sell my property in order to purchase a new property?

If you are purchasing a new property and selling your current property kindly advise the transferring attorney of same. If your proceeds are utilized in order to purchase the new property instruct your transferring attorney to issue a letter of undertaking to the transferring attorney attending to the transfer where you are purchasing.

10. Do I have to pay Agents commission?

If your property is sold by or through an Estate Agent, Estate Agent commission is due to the Agent. The transferring attorney deducts the amount as per the offer to purchase from your proceeds and make payment thereof on registration of transfer.

11. Do I have to pay SARS?

SARS will ensure that all parties (Seller and Purchaser) as well as the Estate Agent’s taxes are up to date after which a transfer duty receipt will be issued to the transferring attorney.

12. What documents do I have to send to the Estate Agent and transferring attorney when selling a property?

· Copy of your identity document.

· FICA documents (Municipal statement, not older than 3 months, alternatively any account reflecting your physical address).

· SARS reference number / Tax number.

· Antenuptial contract / Marriage certificate (if applicable).

· Existing bond account number (if applicable).

· Electrical Compliance Certificate(ECC).

· Gas certificate (if applicable).

· Electrical fence certificate (if applicable).

RELATING TO THE PURCHASE OF A PROPERTY

1. How am I paying for the property?

Cash

On receipt of the transaction/Offer to Purchase by the transferring attorney, the attorney requests the funds to be paid to their trust account. The attorney invests the funds in an interest bearing account, interest to the benefit of the Purchaser. You have the option to request that your Bank issue a guarantee in favour of the transferring attorney against your invested funds.

Deposit

The transferring attorney requests payment of the deposit, which forms part of the purchase price on receipt of the transaction. The transferring attorney requests the deposit to be paid to their trust account after which the deposit is invested in an interest bearing account, interest to the benefit of the Purchaser.

You have the option to request that your Bank issue a guarantee in favour of the transferring attorney against your invested funds.

Note: Kindly insure that the funds (cash and/or deposit) are paid within the time period as stipulated in the Offer to Purchase.

Bond Finance

If you need to register a bond in order to secure the purchase price, kindly ensure that:

1. You obtain a copy of the Offer to Purchase from your Estate Agent.

2. Your Estate Agent assists you, through the services of an originator to obtain the necessary finance.

Alternatively:

Approach your nearest branch or private banker to obtain an approval for finance.

Note: Always have the following documentation ready before approaching a Bank official/originator to assist with finance:

1. Last 3 months payslips from your employer.

If you are a weekly salary earner - 6 months payslips and 6 month Bank statements are required.

2. 3 months Bank statements if you are a salary earner

If you are self employed – Letter from accountant confirming monthly income, 6 months Bank statements

and a copy of your company financials for the past 3 years.

3. FICA (any proof of address not older than 3 months).

2. What legal costs am I liable for?

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.

Note: You have the option to apply for a bond plus costs where the transfer and bond costs are included in the bond.

3. By when and in what way do I secure the purchase price?

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.

Note: Always sign your bond documents immediately on request of the bond attorney as the guarantee needs to be issued

within the time period as specified in the Offer to Purchase.

4. When do I take occupation of the property?

The Offer to Purchase usually specifies when occupation of the property may be taken.

Note: Occupation may be taken by the purchaser before successful registration of the property in his/her name which make him/her liable for payment of occupational rent as per the Offer to Purchase. Should the Seller want to occupy the property after successful registration in the Purchaser’s name the Seller will be liable for payment of occupational rent as per the Offer to Purchase.

5. Do I have to pay SARS anything?

Transfer duty is payable when you purchase a property for more than R750 000.00. The transfer duty payable by a natural person is the same as a juristic person i.e. (Close corporations, Companies and Trusts). 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.

6. What documents do I have to send to the Estate Agent and Transferring attorney when purchasing a property?

· Copy of my identity ducument.

· FICA documents (Municipal statement, not older than 3 months, alternatively any account reflecting your physical address).

· SARS reference number/Tax number.

· Antenuptial contract/Marriage certificate (if applicable).