There’s an old saying: “The job isn’t finished till the paperwork is done.” If you’re in the house buying market, you’d better take note.
There are a lot of legalities, and there’s a fair bit of paperwork to get through before you can call that new house your home. Liesel Greyvenstein of Greyvensteins Attorneys in Port Elizabeth, takes us through the process.
Make sure you get all your papers in good order
Once you’ve signed the offer to purchase and it’s been accepted, the signed contract should go to a mortgage originator or your bank so you can apply for your bond. It’s best to go prepared. You’ll need copies of your payslips, bank statements, ID, marriage certificate and antenuptial contract (if applicable). You’ll also need your income tax number and proof of address.
Get ready to deal with not one, but two sets of attorneys
There may be two sets of attorneys involved in the process. The transferring attorneys, who are chosen by the seller, will receive the contract and contact you so they can start the registration process. They’ll need the same documents you took to the bank.
Once they have those, they will be able to draft the transfer documents for you and the seller to sign.
They will also give copies of the transfer documents to the second set of attorneys – the bond attorneys – once the bank has approved your bond. The bond attorneys then draft the bond documents for you to sign.
You’ll be doing a whole lot of signing before you get the legal bills
Once the bond has been approved, the process can start. The bond attorneys will contact the transferring attorneys to confirm the approval, as well as how much money has been made available to you.
Both the transferring and bond attorneys will contact you to arrange an appointment to sign the documents at their offices.
Both sets of attorneys will make copies again of all your FICA documents and discuss the finances of the transaction with you, and they will present you with their respective bills.
You’re going to need originals of all your FICA documents
It is very important that you take your original FICA documents, as the bond attorneys must make very clear copies of the documents and certify them. They need to apply for their ‘proceed to lodge’ from the bank, as they cannot lodge the documents in the Deeds Office without the bank’s consent. They will also issue the bank guarantee for payment to the transferring attorneys and send their documents to the relevant Deeds Office.
You’ll be getting a title deed in your very own name
Once you have paid the transferring attorneys, they will apply for the transfer duty receipt at SARS, and the rates clearance certificate from the municipality. These are required by the Deeds Office. Once they have those and the title deed, they draft a new title deed reflecting your name, and send everything to the Deeds Office.
It’s going to be a long, slow process, but it’ll be worth it
After about two weeks, the Deeds Office will notify both sets of attorneys that they are ready for registration and will request permission to register. Once they, and the bond cancellation attorneys (yes, there’s a third attorney) confirm that they are ready, the registration finally happens and the house is yours.
Don’t be afraid to ask lots and lots of questions
There’s a lot of paperwork, and it’s best to ask before every meeting which documents you need to bring with you, to ensure the process goes as smoothly as possible. Also, make sure that you ask questions and understand exactly what it is you’re signing, because while all of these formalities are taken care of, you still need to inspect the property properly and take note of every defect that you can and cannot live with!
Your offer to purchase will be legally binding
Once you’ve made your offer and it is accepted, you are committed to the purchase – lock, stock and barrel.
** Originally published on 21 November 2014.
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