Buying Process
Buying a home can be one of the most exciting things you ever do in your life, especially for first time buyers – but if you don’t know how to go about it or you’re not sure what the property buying process involves, it can also be one of the most challenging.
To ensure that there are no surprises when you’re ready to take that all-important step of purchasing a house, we have developed a basic step-by-step guide to take you through the property buying process, including applying for a home loan.
The Property Buying Process & Applying for a Home Loan
So you’ve found the house of your dreams – Congratulations! What’s next?
After signing the offer to purchase, the property buying process is as follows:
Step 1: Bond Origination
The selling agent will obtain copies of all supporting documentation required by the banks and the transferring attorney to process an application. Documentation includes up-to-date payslips, bank statements, ID documents, proof of address, SARS number, and other applicable documents.
This documentation, together with the bond application forms, is submitted to the bank for finance. As a full-service real estate agency, CIS Real Estates offers bond origination services to all of our buyers.
Step 2: Approval for Finance
Upon receipt of the forms and supporting documentation, the banks will verify and assess your application using the ITC Credit Check System, calculating affordability, confirmation of income and employment, as well as the valuation of the property (which we will organise on your behalf).
If everything is found to be in order, the application will be approved and sent to the transferring and registration attorneys to begin the transfer of ownership process.
Step 3: Transferring & Cancellation
Once the bank receives instruction, the attorneys will draw up the necessary documentation for signing by you as the purchaser and the seller. They will call for cancellation figures from the bank on the seller’s existing bond if applicable, as well as contact the Ekurhuleni municipality for the rates and taxes settlement, which has to be paid to Ekurhuleni municipality before lodging can be done.
Another very important document that is required is the electricity certificate which is applied for by the current owner, certifying that the electrical and/or gas system in the property is up to standard. This must be carried out by an approved electrician.
Step 4: Registration
Once all is in order, the transaction will be lodged at the deeds office and around 12 to 15 days later, the property should be registered in the new owner’s name. The entire process from signing the offer to registration should be around 90 days, depending on circumstances, and should run in line with the cancellation notice. This notice is handed in to the seller’s bank for the notice period required by all major banks on bonds held, and cancelled to avoid a cancellation penalty charged by the bond holder.
Within a month after registration, the first bond payment should be made by the bank that approved the bond.
Step 5: Handing Over
During the whole process, CIS Real Estates keeps in touch with both the seller and purchaser with constant updates on the progress of the whole transfer process. Once registration has taken place, the seller’s bond will be paid off, if applicable, and if there are any proceeds, they will be paid to the seller.
The property can then be handed over, unless you have already taken occupancy of the property with occupation rent which is payable to the attorneys to pay over to the current owner. The occupational rent amount should have been agreed upon in the initial offer to purchase.