Potential dwelling consumers get a variety of recommendation about how to decide on the best dwelling and the best dwelling mortgage, and even make a profitable supply to buy – however not sufficient about what occurs subsequent.
Even when your supply has been accepted and the financial institution has authorized your mortgage, there are nonetheless a number of different essential phases of the transaction to get by means of earlier than you may settle into your dream dwelling and invite your folks round for a tour, and it actually helps to have knowledgeable agent guiding you thru the method.
The phases embody:
• Getting your funds so as. Your bond could cowl the entire buy worth of the property however you might be additionally going to wish money to pay the bond registration payment, authorized charges, switch charges and any switch obligation which may be due. Additionally, you will must pay half of the anticipated municipal charges and taxes for the switch interval, which is normally about three months, though you could get some or all of this quantity again when the property is transferred. After that you’ll want to pay for the municipal providers comparable to water and electrical energy to be linked in your identify.
So you could must switch funds from a financial savings account or liquidate one other funding or watch for an inheritance to be paid out earlier than you may proceed, and a good property agent will be sure that your sale settlement offers you an inexpensive period of time to do that, with out infringing on the rights of the house vendor,
• Acquiring extra insurance coverage. Your lender will definitely insist that you just get hold of dwelling homeowners’ insurance coverage (often known as HOC) to cowl the restore or substitute of the property within the occasion that it’s broken or destroyed by fireplace, wind, flood or different pure catastrophe.
Many banks can even insist that you just take out credit score life insurance coverage (bond cowl) to the worth of the excellent dwelling mortgage stability. This can be a good concept anyway as a result of it implies that your loved ones will be capable of repay the bond and proceed to stay within the dwelling even when one thing occurs and also you cross away. A few of these insurance policies additionally cowl a number of months of bond repayments do you have to be retrenched out of your job.
• Dealing with another contingencies. The entire transaction might be put ‘on maintain’ when you organise a report from a house inspector, or watch for compliance certificates, or on your current dwelling to be offered and the proceeds to grow to be out there. However whereas a great agent will be sure that such contingencies are additionally written into your sale settlement, he says, there might be a deadline for them to be fulfilled, so you ought to be prepared take care of them as quickly as attainable.
If you have to promote an current property, for instance, it is best to be sure that it’s listed instantly and be ready to accommodate viewings by potential consumers.
• Responding to requests. You might want to reply promptly to requests out of your financial institution’s attorneys or the attorneys attending to the property switch to signal all of the paperwork which can be required to register a brand new bond and get the property registered in your identify.
Lengthy delays or failure to reply may end up in the sale being cancelled and also you having to forfeit any deposit paid. Nevertheless, an agent will be capable of offer you a schedule of all of the deadlines to be met (by you and the vendor), and the estimated time that every a part of the method ought to take.
The truth is, the involvement of a good, educated property agent advantages the house purchaser as a lot as the house vendor – and is an more and more essential think about buy selections, particularly amongst first-time consumers.
Gerhard Kotzé is MD of the RealNet property company group.