This depends on the terms of your sale agreement. Your sale agreement would typically stipulate when you are entitled to occupy. It will sometimes be a specific date, for example; 1 June. Often the occupation date is, however, linked to the registration date of the transfer of the property at the deeds office. In such […]
Read more...Category: Property Law
Property transactions
Must the electrical certificate of compliance also cover our electric fence?
The COC must be obtained for the house and the electric fence, if applicable. Volker Krüger
Read more...Who must obtain the electrical certificate of compliance?
The electrical certificate of compliance in terms of the relevant Electrical Installation Regulations, 1992, framed under Act no 6 of 1983, as extended by Act no. 85 of 1993 is also commonly referred to the “COC”. The contract of sale will typically stipulate that the seller has to obtain the COC at his cost. If […]
Read more...How long does it take to get permission from the bank to proceed with the registration of my mortgage bond?
Anything between two and seven business days after we have lodged all relevant documents with the bank. This depends on the relevant bank. Volker Krüger
Read more...I do not have the funds available to pay the municipal clearance figures. What can I do?
If the proceeds of the sale will be sufficient (after amounts such as the outstanding balance of your existing bond and agents commission have been deducted), we can arrange bridging finance for you. The bridging finance can then be used to pay the municipal clearance figures. The bridging finance will, however, only be approved once […]
Read more...Why do I have to pay cancellation costs for the cancellation of my existing mortgage bond?
When the mortgage bond is registered the relevant documents have to go to the deeds office to be noted against the relevant property. Likewise, when a mortgage bond is cancelled, the cancellation also has to be noted against the relevant property at the deeds office. The cancellation costs are our costs to attend to this […]
Read more...Who qualifies for a government subsidy for the purchase of property, also referred to as FLISP?
Financed Linked Individual Subsidy Program, better known as FLISP, was developed by the Department of Human Settlements to enable sustainable and affordable first-time home-ownership opportunities to South African citizens and legal permanent residents. Only purchasers who fall into a certain salary category qualify. You should be able to find the relevant information on this site: […]
Read more...Do I have to take out life insurance cover for my mortgage loan?
Only if the bank requires such insurance. Many people, however, irrespective of the bank’s requirements in this regard, decide to take out life insurance and cede it to the bank to ensure that the balance is settled upon your death. Volker Krüger
Read more...What if there is a shortfall on the seller’s finances? In other words, there is not enough money available to cover the outstanding balance on the existing mortgage loan of the seller?
We can ask the bank to reduce the cancellation figures (the amount payable to the bank upon the cancellation of the mortgage bond) so that the transaction can indeed proceed. The banks are often prepared to grant considerable discounts on the cancellation figures, provided the seller signs an acknowledgement of debt to pay off the […]
Read more...How much money will I as seller receive?
You will receive the purchase price less amounts such as: the outstanding balance on your existing mortgage bond also called cancellation figures; (please note that the interest on your bond will keep running until the registration date; you should notify your bank of the sale to limit any penalty interest that the bank might […]
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