What happens once I have signed an Offer to Purchase?

What happens once I signed my Offer to Purchase?

Buying a home can be a challenging experience if you are unsure what to expect. 

PLEASE NOTE: the purpose of this post is to inform only. If you need more detailed information, contact your local conveyancer. 

Once the Offer to Purchase was accepted by the seller, the buyer may have a couple of weeks to acquire a bond, in case it is not a cash transaction, as most purchases are subject to bond approval. As soon as the buyer obtains bond approval, the seller instructs his attorney to attend to the registration of transfer of the property to the buyer's name at the Deeds Office. This however, could take a few weeks to complete...

What documents are required to purchase a property? 

The transfer attorney will gather the following before lodging a transfer of registration at the Deeds Office:

• The payment of the buyer's deposit, if there is one.
• Guarantees from the bank offering the bond to the purchaser that the outstanding amount will be paid on the registration of transfer.
• A clearance certificate from the local municipality as well as the Body Corporate (if applicable) that all outstanding fees associated with the property are paid in full
• A Transfer Duty receipt from SARS
• Signed offer to purchase and FICA documents from both the buyer and the seller
• Consent from the seller's bond holder, that their current bond may be cancelled. 

Once all of the above is in place, the attorney may lodge the instruction in the Deeds Office for registration. On the date of registration, the buyer will officially becpme the new owner of the property. 

How long does the registration of property transfer process take?

Currently the transfer process takes 6-8 weeks from the instructions are received to completion of registration.

What can a buyer do to speed up the registration of property transfer process? 

• As soon as the seller accepts the Offer to Purchase, the bond application process needs to start immediately. Time is of the essence. If you fail to provide proof of a bond in the stipulated period, the process may terminate and you may lose the property. 
• Provide FICA and other documents to your estate agent, bond originator, transfer and bond registration  attorneys as promptly as possible.
• Ensure your Income Taxes are fully paid to date at SARS.
• Understand all the costs that are payable by you, the purchaser: You are liable for the cost of the Transfer Attorney as well as that of the Bond Attorney. Ask you conveyancer or estate agent for an estimation of the required costs upfront so that you can make provision for it. Note: these costs need to be paid in cash. It is not included in your bond. 
• If you are uncertain about any matter in this regard, discuss it with your estate agent or Transfer Attorney. 

What else should a buyer know?

• The offer a buyer makes to a seller is a binding contract. Ensure you fully understand the conditions of the contract before you sign the offer. If anything is unclear, you should ask your estate agent or Transfer Attorney to explain it before signing.
• You will receive the keys to the property upon taking occupation of the property. If this happens before registration at the Deeds Office, you will be liable for occupational rent payable to the seller.  However, if the seller needs more time after registration, you could receive occupational rent instead. If you receive the keys upon the date of registration, the property is yours and you become liable for payment of the rates and taxes, the bond, utilities and the maintenance of your new home. 

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL

Five Symptoms That Indicate Your Property Is Overpriced

Having a property that just does not sell is incredibly frustrating! You have employed 10 agents to do the job, but the buyers are nowhere to be found. Why is this? 

Just like every parent believes their child is extraordinary, home owners often also believe their property is the best home on the market and should therefore justifiably be sold at a higher price. Unfortunately, it doesn’t always work that way and often home owners wait for months or years before the property finally sells - if at all.

In the current buyers' market, the risk of an overpriced home isn’t simply that you won’t get your asking price – there is also a risk of potential buyers that never even get drawn to view the property. An unreasonable price often stigmatizes the property and causes potential buyers to simply pass it by.

Soon after a property is listed on the real estate portals, major activity occurs around the newly listed property. This initial hype slows down after the first month and within three to six months, the property becomes an old listing that gets filed along with the other forgotten properties in the junk drawer.

Just because owners may have had a thing for exquisite showers and spent thousands of rands to install them in all bathrooms, does not mean a house will sell for R100 000 more than the neighbour's house. It has been proven time and time again, that a property's value is determined by the market, not by an agent, nor any other individual. It has nothing to do with how much the seller paid for the house a number of years ago or how much he is hoping to profit from the house, but driven purely by similar recent sales in the immediate surrounding area.

Five Symptoms That Indicate Your Property Is Overpriced

Your home is priced well above your neighbours' properties.

The first thing estate agents do before they recommend a price to a seller, is to look at the sales prices of the last three sales of comparable-sized homes in the neighbourhood. Be sure to get the opinion of two or three reputable agents and decide what a suitable price tag for your house will be. Over-capitalization also has the unfortunate consequence that the value of additions just does not get reflected in the final sales price and often is picked up at a bargain by a savvy buyer.

After being on the market for three months or more, you have not received any offers.

Although some prestigious, high-end homes often stay on the market for long, others should get a lot of interest in at least the first four weeks if they are reasonably priced. If the buyers perceive your property to be priced correctly, you may receive a number of competitive offers to purchase in a relatively short time frame.

You accepted the recommendation of the estate agent who valued your property at the highest price and expected other agents to market it for the same price. You hardly ever hear from the agents and are left in the dark about the progress made.

Realtors seldom work on a property that is overpriced. They may list it and then forget about it. Firstly, because they know they will not get any strong interest in their advertisements, and secondly, simply because they know that their chances of selling the property at an inflated price, are slim. You are advised to speak to agents from a couple of reputable companies before choosing who you would like to represent you. Furthermore, if you consistently hear some agents indicate a price that seems lower than what you expected, it most likely is the correct price. Estate agents from a company such as Seeff, are trained and experienced in proper market analysis and are also familiar with real estate activities in the market.

There aren’t any scheduled viewings. 

Immediately after a property is exposed to the market, there should be at least a handful of appointments with potential buyers who want to view the property. If this is not the case, it possibly indicates that buyers scanning the web are finding enough other similar properties in the area at a lower price. You are advised to adjust the price a little if there has been no viewing in the first 4-6 weeks. At this point it is not yet too late to reduce the price. However, it is important to reduce it as soon as you become aware of these symptoms, if you hope to keep potential buyers interested.

No real interest is shown by walk-ins during an Open House / Show day. 

You leave your home Sunday after Sunday while one after the other agent puts it on show, yet walk-ins never show much interest after hearing the asking price. Remember, the market (the buyers) determine the price of a property. Be a fast learner! Test the market- no results!-adjust the price and get it sold... If you notice one or more of the symptoms described above when trying to sell your property, you are advised to revisit the pricing of your property with an experienced estate agent, from a reputable company such as Seeff. Seeff has been in the real estate business for over 60 years and covers most areas in South Africa and even selective areas abroad.

An experienced area agent will always be able to advise you of the market trends in the area. You may be surprised, but sometimes a relatively small adjustment results in a sudden flood of activity, as buyers suddenly bring you multiple offers. And no, this will not be because your property is priced too low! It will be because your property, is perfectly priced.

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair!  

Mobile: 071 758 0996 

alta.nel@seeff.com
Website: altanel.co.za

What costs are the seller of a property liable for?

Before you decide to sell you home, it is important to know what costs you, as the seller, will be liable for. Understanding this will assist you to determine your estimated proceeds from your property. This is particularly important when your intention is to acquire another home with the proceeds of a sale.

PLEASE NOTE: THIS IS SHARED FOR INFORMATION PURPOSES ONLY.  KINDLY CONSULT WITH YOUR LOCAL CONVEYANCER IF YOU NEED MORE SPECIFIC DETAIL.

As the seller, you are liable for the following costs

Cancellation of your existing bond 

• The bank that holds your home's deed as security for the payment of your bond, will not release theses deeds without a guarantee that the outstanding balance will be paid upon registration.
• The bank will instruct an attorney to handle the current bond cancellation on their behalf.
• The bank's attorney will charge a fee, payable by the seller, before registration.

Rates and / or Levy Clearance

• Prior to registration of the transfer of the property to the new owner, the Deeds Office will ask for proof that all your utilities are paid in full and up to date
• The transfer attorney will obtain the clearance figures from the municipality and the body corporate and home owner's association, if applicable.  

Estate Agent's Commission

• An estate agent who markets and sells your house, normally works for a fee.
• The estate agent's commission will be payable from your proceeds, on the date of registration. 

Electrical Compliance Certificate

• No transfer of ownership may take place without an electrical compliance certificate. (Occupational Health and Safety Act 1993)

• You are advised to obtain the certificate from your local electrician who will conduct thorough testing of all electrical ware on your property. You are advised to apply for the certificate once you decide to put your house on the market. This way you will have ample time to make electrical corrections beforehand, as it may become pricey if the electrician finds a matter of non-compliance and has to fix it. 

• The seller pays for the certificate which is issued by accredited electricians only.

Other Possible Charges

• Electrical fence compliance certificate
• Gas installation compliance certificate
• Entomologist reports (in certain areas)
• Plumbing certificate (in certain provinces)

What can a seller do while they wait for their property to be sold?

• Ensure all your income tax is paid in full at SARS
• Ensure your rates account is up to date
• Arrange an Electrical Compliance Certificate/gas and electrical fence certificates 
• Ensure all additions made to your property are on the plan registered with the municipality
• Calculate your estimated proceeds with the information at hand
• Discuss any uncertainties with a local transfer attorney. 

When is Capital Gains Tax payable by a seller?

Capital gains tax is payable when a seller sells an asset that exceeds R2 million on properties not exceeding 2 Hectares.

Kindly contact your local tax practitioner for more information.

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

Website: altanel.co.za