Know the key role players in your home buying journey
Category Advice
Buying a home is a complex process and there are several role players who will take you from dreaming of owning your own home to having the keys in your hands.
Estate agents facilitate the buying and selling of a home, acting as a liaison between the buyer and seller to negotiate the best deal for all parties. The agent will also offer guidance and market insight, and will manage the administrative aspects of the transaction.
But there are other keys roles you should note as you begin your homeownership journey, here's a useful breakdown of who does what when it comes to buying or selling a home.
Bond originator: Working with a bond originator is one aspect of buying a home that won't cost you anything.
They apply to multiple banks, on your behalf, to secure the most competitive interest rate on your home loan. The bank pays the bond originator a once-off fee when the home loan is registered, but this cost is not passed on to you and need not form part of your home-buying budget.
Bond attorneys: Bond attorneys register the bond in your name.
Transferring attorneys: Transferring attorneys manage the transfer of the property from the seller's name to your name. These attorneys are usually appointed by and represent the seller. If the seller has a bond over the property, cancellation attorneys will handle the cancellation of the existing bond. If you buy a new development where there is no prior owner, cancellation attorneys will not be involved.
Deeds office: The Deeds Office will register the property and bond in your name and issue the Title Deed. The original Title Deed is held by the bank from which you got your bond, so you will get a copy to keep for your records.
The municipality: The municipality issues the Rate Clearance Certificate for the property. This confirms that the seller does not have any outstanding rates due on the property. It must be issued before transfer can take place.
SARS: SARS (South African Revenue Service) will receive the transfer duty and issue the Tax Clearance Certificate. Transfer duty is the property tax that is payable to SARS for properties valued at more than R1 million. This is not to be confused with transfer costs, which are the legal fees payable to the attorneys who transfer the property into your name.
Also, as the seller, be sure to obtain compliance certificates for electrical, gas, the electric fence, water or plumbing and beetle. If anything needs to be repaired to obtain these certificates, you will need to carry the cost.
Author: Property 24