Legal Services

The Registration Process

Completion of agreement of sale
Purchaser applies for a loan through Mortgage Assist (Pty) Ltd
Attorneys firm instructed by die agent
Request cancellation figures for the seller’s bond
Request rates, levy clearance figures from the local municipality / managing agent
Purchaser’s mortgage bond finally granted
Title deeds obtained from holder
Documents signed by seller and purchaser
Pro-forma transfer costs obtained from the purchaser
Guarantees obtained
Transfer duty/VAT /exemption obtained from the South African Revenue Service (SARS)
Rates clearance obtained from local municipality
Electrical clearance certificate obtained
Transfer ready to lodge
Bond cancellation and the new bond ready to lodge
Lodge at Deeds Office - usually 8-12 working days
Deeds come up for preparation
Registration
Sale proceeds and commission distributed

The registration process takes about two months in total, but because of the involvement of several other parties (such as the bank, SARS, local municipality etc.), this process can take longer.

Legal services are provided by Wilsenach van Wyk Goosen & Bekker (Pty) Ltd Attorneys.

Explaining terminology used in an application for a home loan

A Mortgage is a loan you obtain to pay for a home and any land it sits on. The home and land are used for collateral on the loan, which means that if you don’t make your payments, the lender can take the home away to cover your missed payments.

The loan principal is the amount you actually borrow to purchase the home.

Interest is the amount the bank charges you to use their money - it is a percentage based on current economic indicators.

Because the loan is for such a high amount, it is usually financed for a period of between fifteen and thirty years. This amount of time is called the loan’s term. Principal and interest together comprise most of your payment.

The total is then divided into equal payments over the life of the loan using a process called amortization. With amortization your payments mostly go toward interest early in the loan and then more go toward the principal later in the life of the loan.

The difference between the market value of a home and the balance on the mortgage for that home is called equity. An owner’s equity grows as the mortgage is paid down and as the home appreciates (value increases).

Capital Gains Tax was introduced in South Africa on 1 October 2001. Taxpayers, including individuals, trusts, companies and close corporations, will be based on the profit they make when they sell an asset or property of a capital nature. Capital Gains Tax in basically a tax on the resale of assets. In most cases, it will not affect your primary residence, provided the property is smaller than two hectares and the profit is less than R1 million. However, homeowners will be liable for CGT on second properties or holiday homes that are not occupied as a primary residence or on any portion of a primary residence that is used for business purposes.