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...Category: Property Law
Property transactions
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 […]
Read more...Will the transferring attorneys invest the money that I pay into the trust account so that I earn interest?
Yes. You, however, must provide them with your FICA documents before they can do the investment. Volker Krüger
Read more...My agreement of sale stipulates that I must deliver bank guarantees for the purchase price. How do I do that?
The attorneys attending to the registration of your mortgage bond will ensure that the bank guarantees are delivered to the transferring attorneys so that you comply with your obligations in this regard. Volker Krüger
Read more...What happens if the bank does not timeously approve the purchaser’s loan application?
The deed of sale of land would typically stipulate that the purchaser must obtain a loan for a certain amount from a bank or another financial institution before a certain date for the transaction to proceed. It is called a condition precedent or suspensive condition of the agreement. If the loan is not granted before […]
Read more...Can I get a discount on the bond registration costs?
Only if the bank’s conditions for the granting of the loan cater for such a discount. Volker Krüger
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