Home Buying 101

What to Expect when buying a house…

Do a proper inspection of the property.

Most properties that are not sold by developers, but by the owner via an estate agent, are sold voetstoots.

What does voetstoots mean?

When buying a house, voetstoots means that you purchase the property just as you view it on the day. It is expected of you to do a proper inspection of the residence and grounds. The duty is therefore on you to inspect the roof, plumbing & water pressure, whether the windows and window fittings are working, whether the toilets and showers are properly working, whether all doors can lock and whether the cupboards are all in working order. You are even expected to draw the curtains and open the cupboards to inspect for dampness, mildew or rot.

It is furthermore expected that you peruse a copy of the title deed and to look for restrictive conditions. It is a public document. It would also be beneficial for you to attend the local council  to find out if the zoning of the property is in accordance with the purpose for which you are buying the property.

Voetstoots also means that you purchase the property, whether it has been approved municipal building plans for all the structures on the erf, or not. Ask the agent for a copy of the building plans and if the seller does not have them, the local council will.

What are the expenses?

• Possible costs to cancel the lease agreement, if you are currently renting.
• There are no costs to obtain the services of a bond originator, should you require bond finance to pay the purchase price.
• Transfer costs of the transfer attorney.
• Bond registration costs, should you require a full or partial bond to be able to make payment of the purchase price.
• If you are purchasing a property with a value of more than R1 000 000.00, then transfer duty tax will be collected by the transfer attorney, to obtain a receipt, as part of the transfer procedure.
• Depending on the council, rates and taxes will also be collected to be paid in advance by the transfer attorneys on your behalf. Contact us to find out more.
• If you are purchasing a sectional title unit or an erf in a Home Owner’s Association, then levies are also collected as part of the transfer attorneys’ account. These funds are to be paid in advance by the transfer attorney on your behalf.
• If you would like to know what the transfer costs will be for your purchase bracket, check out our transfer calculator.

Read the contract before signing.

Most contracts are drafted in accordance with current legislation and common law. it is therefore compiled in easy-to-read wording which is not lengthy. Take the time to read every clause. If the jargon is too difficult to understand, contact us for advice.

Once you have signed the contract and you have put pen to paper, you are bound by the terms of the agreement. These terms cannot be changed without the consent of all parties involved.

What is bond finance?

If you require financing to purchase a property, it is wise to contact a bond originator to pre-qualify you first, or you can get your bank to assist you. You may also ask the estate agent for a few references. Once you are “pre-qualified”, you know what you can afford, according to your financial means. This does not cost you a cent.

Once your offer is accepted by the seller, the agreement is sent to the bond originator again to shop around for you, to get you the best interest rate and offer from either your own bank or any other financial institution.