Real Estate Investor Magazine South Africa July 2013 | Page 31

RESIDENTIAL
provide the following certificates:
• An electric compliance certificate
• A gas compliance certificate (if there is gas
on the property)
• A plumbing certificate (for properties in the
City of Cape Town municipality)
• An electrical fence certificate (if there is an
electric fence)
• A beetle-free certificate (this is usually only
provided in coastal areas, and may be left off
by agreement between the buyer and the
seller).
These certif icates will have to be signed
off by a registered or certif ied contractor
who is authorised to issue them, to be valid.
For transfer to take place, the seller has to
have obtained a clearance certif icate from
the municipality confirming that the rates
payments are up to date. Both the seller and the
buyer will have to show that their tax affairs are
in order for SARS to issue the transfer duty or
exemption receipt.
Another commonly used term is Home
Owners Cover. If a fire, f lood or any other
unforeseen disaster were to damage or
completely destroy your home, you’d be faced
with the stress of having to rebuild and find
alternative accommodation. You’d also be
forced to pay a bond instalment on an asset that
no longer exists. Therefore this insurance is a
statutory requirement if the property is bonded.
You have the freedom of choice to obtain this
cover from any accredited insurer.

When is it legal and binding?
The sale agreement is a legal and binding
document between the parties and can be
enforced once all the conditions set therein
have been met by the parties concerned within
the time provided. i.e. if the sale of a property is
subject to a bond being issued by a bank before
a set date then this condition will be considered
concluded once such a bond has been granted
within the time period provided.

Who is liable for the deposit?
The buyer is liable to provide the deposit.

What can you do if you cannot afford
the deposit, what are your options?
If the buyer is not successful in obtaining a
100% loan (full purchaser price) from one of
the financial institutions then deposit options
must be considered. There are short-term loan
www.reimag.co.za

products that may be available for smaller
deposit requirements under R150 000 and there
are also options of pension-backed lending
facilities in certain instances where buyers
belong to pension or provident funds that allow
such lending with their pension fund being
offered as security. Government departments
also have the opportunity of applying for a
paper guarantee provided to the banks against
the pegging of the individual pension fund
(guarantee known as the Z573). This document
will however indicate the maximum bond or
loan that the client may buy up to, alternatively
the guarantee falls away.

In terms of a guarantor, what do they
do, when can you use them, how can
they help/hinder you home loan?
This is referred to as a suitable surety and not all
banks will accept the offer of surety by another
party in order for the purchasers to increase
their chances of approval. Where banks will
accept a surety to improve changes of approval
the surety must be able to qualify for the finance
in their own right and often need to have a
direct interest in the property such as a spouse
who is living on the premises etc. Certain banks
insist that they will not accept surety and the
party offering surety must become the coapplicant on the offer to purchase.

“Use an expert originator
to get you the best deal on
your home loan”
Safeguard yourself throughout the
process and ensure a good outcome
Use an expert originator to get you the best
deal on your home loan. Getting a home loan
approved involves lots of paperwork, some of
which can be very confusing. It gets even more
complicated if you apply to more than one
bank. Because of this, it’s a good idea to use the
services of an expert originator, like ooba, to
submit your application to multiple banks.
The process of buying and selling a house
is a stressful experience, but with the right
knowledge and people helping you, you can
streamline the process and save yourself time
and money.

RESOURCES

Talking digital with Stuart Chait,
Founder of Homes2go

1. Where do you see the digital industry going
both internationally and locally?
The growth of the digital industry has been
exponential over the past few years, and seems
set to carry on that way. We have seen huge
developments in the local digital space, and we
wanted to capitalise on this. The reduction of
print media is a direct result of the digital market
increase.
2. What online tools do you personally
endorse?
We have integrated a property valuation tool into
our website which is provided by Lightstone. This
enables users of the site to obtain a valuation of
their property from the comfort of their desks, for
the bargain price of R50. The valuations are 97%
accurate and we think that it is an invaluable tool
for homeowners looking to sell their property
online.
3. While people search online, they still like
to see and view the property; do you see this
changing anytime soon?
For most people, buying a home will be the
biggest and most important purchase that
they will make during their lifetime. Given the
magnitude of the investment, we understand
why so many buyers are insistent on viewing
properties before they commit to buying.
Obviously there are exceptions, but for the most
part we do not see this changing in the near
future. It is important for buyers to feel at ease
during the process of purchasing a home, and
viewing a property provides a certain peace of
mind that viewing online simply cannot. The
digital platform also provides an opportunity for
buyers to sift through potential