Friday, 25 January 2008

What you need to know to buy your first home

We all face this issue at one time or another in our lives, whether it is when you decide to move out of your parents house or when you decide to take that giant leap into marriage. It can also be one of the most unnerving experiences, especially when you don’t have a clue. So, I have decided to embark on a journey of discovery into the property market.

I found some very interesting suggestions, and yes I am going to share them with you, they are:
1) Contracts: For your first time you will need to organise a contract, and that includes one between the seller of the property and you, the home buyer, and secondly between the home buyer and a financial institution. I know what you’re thinking…PAPER WORK!!!! Unfortunately it is a necessity but with the use of a good Bond Originator this can be avoided.

2) Spousal contracts: There are different ways for this topic to be dealt with; it all depends if you are married, and if you are what type of contract you have. For instance, if you are married in community of property, both spouses must sign the contract, or if one signs it, then the other must have written consent from the other spouse. If you are married out of community of property, then you are two separate people, and only one needs to sign the contract, if only one of you is buying the property, otherwise both need to sign the contract.

3) Bonds and contracts: If you need bond finance to buy your first home the contract will show how long you have to apply to a financial institution and obtain the finance. If the application is turned down, there is no contract between you and the seller, but if you are granted the bond, within the time period that the contract shows, then there is a contract between you and the seller. Once that happens there is no way to cancel the contract without legal grounds.

4) Occupation of property: If you decide to take up occupation of the house before registration, most people agree to an occupational rental, which is to be paid until the date of registration.

5) Legal representatives: Generally there are two attorneys involved in the transfer process, the transfer attorney as well as a bond attorney. This may look as though you are incurring added costs, but that is not the case, you would need to pay for the transfer and bond registration anyway.

6) Transfer duties: At least there is some good news in this department, there are no transfer duties if you bought your house for less than R500 000.00. Unfortunately it does not mean that you don’t have to pay any costs, transfer duty is a tax exemption, but transfer costs still need to be paid.

7) Estate agents undertaking: When you buying a house for the first time estate agents know, so be very careful you don’t find a sly one. Draw up a sales contract just in case.

8) Bond conmen: There are some conmen out there, so beware. They could tell you that you can still get a bond even if the client is blacklisted.

9) Avoid verbal agreements: Do not rely on a verbal agreement when deciding on the sale; you are spending too much money not to do things properly. Also, there is no need to sign your sales contract immediately, first read through every word, and make sure you are happy.
So the few things I did learn, and I hope you noticed them too, is you are going to be signing a lot of paper work and spending a while drawing up contracts to suit your needs, also do not take any short-cuts; this is just going to end badly. And you are going to be spending a lot of money buying your dream home, but it’s worth it in the end.

Laiken Cullen (SA Property's Up and Coming Copywriter)

If you're looking for a good freelance copywriter (email me at )

With a little help from:

1 comment:

Pia's blog said...

This is what home buyers especially the first time buyers should know before buying a home. That information you've shared were very helpful.
Pia | houses in the philippines for sale