« Get Close to Property Transfer Cost in South Africa | Main | Secrets you never learned about home building Labor, Materials, and Tools »
Get Close to Property Transfer Cost in South Africa continued
By arlene | February 20, 2009
For example: A property costs R70 000 and you have paid a deposit of 10 percent. The seller will expect occupational interest on the outstanding R63 000 at about the same rate as the mortgage bond rate applicable to this amount, unless otherwise specified, which currently stands at 16,25 percent but which is subject to regular change. Meanwhile the remaining 10 or 15 percent of the purchase price due in cash from the buyer in addition to the bond money, is probably languishing in some fairly low interest bearing deposit or even a current account. The trick here is to get this money in a suitably safe form to the seller as soon as possible after occupation and the best way to do so is to see if he is agreeable to it being paid over to his attorney for deduction from the amount outstanding.
With more and more home-owners gaining the benefits of subsidized bonds, another financial hitch arises from delays in that the subsidy usually does not apply to occupational interest. Suddenly an effective repayment of about 4 or 5 percent on the amount of the subsidized bond becomes the full unsubsidized figure, which can easily be two or three times higher and can provoke a financial crisis if the delay is prolonged and you were not prepared for it.
This is not to say the purchaser making use of unsubsidized bond finance does not face a related problem. Here, extra expense can be incurred from the practice of most building societies to charge a type of holding cost on a bond that has been granted but not registered after a certain period of time, usually a couple of months. The charge is based on what the societies would have earned on the bond from the purchaser and what it is getting by keeping it in a short term deposit. Thus, the delayed purchaser can find himself paying say 5 percent on the cost of the bond to a building society, but still paying full occupational interest to the seller. At worst, it would leave a civil servant qualifying for a subsidy entitling him to an effective bond interest of about 5 percent, for example, paying about 14 percent occupational interest on say R40 000 to the seller, and about 5 percent on the R40 000 to the building society. It does not take much imagination to appreciate the implications of having to pay almost four times more than anticipated on a large sum for even a relatively short period and probably at a time when personal finances are already stretched to the limit.
Forget about trying to save on legal costs by attempting to undertake transfer yourself. The Registrar of Deeds will work only with a conveyancer, a person specially trained in drawing up deeds, a conveyancing attorney or the owner. Since preparation of the deed is restricted solely to the conveyancer, there is not much point in the owner getting involved in the process as he will still require professional legal services. In any event, he would not have much reason to become involved since the buyer is normally responsible for the costs of transfer.
Where a building society loan is required to facilitate the deal, the society lending the money will require a mortgage bond to be passed as security for this loan. The bond will then be registered simultaneously with the execution of the deed at the Deeds Office. Again, the buyer is unlikely to see the actual documents involved in this process, nor in fact to be much bothered with the arrangements since the attorneys acting for the building society and those attending to the transfer of the property liaise with each other, though most building societies will accede to a request for a copy of the mortgage bond document.
Other documents relating to transfer include a certificate stating that the rates have been paid for the year in advance, and an affidavit stating the purchaser belongs to a racial group complying with the zoning of the property in terms of the Group Areas Act. The conveyancer will also calculate the necessary transfer duty, for which a receipt should be obtained.
Wise to use the best information of wholesaling inventory, include South African For Sale, Wi-Fi Audio Surveillance, Fabric Transfers Products Wholesale, RC Nitro Cars, Introducing Property Valuation Wholesale Price, Zurich Tax Handbook 2009-2010, General Distributor, Projectors for Home Theater, Decals & Transfers Wholesaler, Zurich Tax Handbook 2010-11, Economics Textbooks Wholesale Price, Best Business and Finance Books and Legal & Law Supplier, stand the first line to the giant of internet drop ship.
Possibly related posts: (automatically generated)
Get Close to Property Transfer Cost in South Africa continued
- Exchange control
- Get your Housing Financial Picture in Focus
- Get Close to Property Transfer Cost in South Africa
- The Sale of Company-owned or Close Corporation-owned Residential Property
- Take next step to Invest on Property
- Time-sharing Summarized
- The Future is Networks
- The Art of Selling Real Estate continue...
- New Housing Subsidy System Part 1
- How to choose Real Estate Agent when Private Property Buying is a bad idea
Topics: Africa, Property | 7 Comments »
February 20th, 2009 at 1:41 pm
I am expecting going to South Africa for 2 weeks and wish to incorporate a safari together with a wine tour. … Car Hire South Africa
February 20th, 2009 at 3:42 pm
(If you are unable to view the owner s contact details on this web page, mail when a new property in your preferred price range and area is listed. … Guest Houses
July 12th, 2009 at 11:10 am
This quaint coastal town can be found midway between port Elizabeth and east London in the malaria free eastern cape province of south Africa. … South Africa
August 20th, 2009 at 12:45 pm
They can be cities houses, resort condominiums, townhouses, country farms, woods cabins, ski resort chalets, lakeside bungalows, beachfront ramblers, mountain cottages, or even luxury mansions on private islands. … South Africa
September 23rd, 2009 at 12:18 pm
Silver, proof set, mint set, proof coin, mint coin, united states proof set, us proof set, us proof sets, us. … SOUTH AFRICA
October 12th, 2009 at 4:08 am
22 Issue six, 9 the article profiles former president and freedom fighter of South Africa, Nelson Mandela. … Roses Throughout South Africa
October 18th, 2009 at 12:09 am
A family property since 1490, Ch teau de Saint Come is nicely placed at the heart of the Gironde’s region. … South Africa