So, you have decided to buy a house! Whoopeedo! Your trials and tribulations are just about to begin.
Unless you are incredibly lucky or are endowed with vast sums of money you will have to consider a number of aspects.
The old adage of location, location, location cannot be stressed enough. A smaller house in a good area is always going to appreciate quicker than a big house in a not so good area. So consider your options.
If you have a young family schools and ease of shopping are probably your next criteria. Are schools within walking distance (an increasingly important consideration in these days of spiralling petrol costs)? Can you do your shopping easily on the way to or from dropping children at school? Are sports clubs and service organisations close?
If you are a retired person the issue of schools may not be so important (although you may want to easily visit your grandchildren and watch them play sport). However ease of access to doctors and physiotherapists, the shops, your church and any community recreational facilities may be high on your list.
Once you have decided on your specific needs then choose an estate agent with whom you are comfortable working. Let the agent know your list of needs and ask them to listen carefully to what you want so as not to waste your time. Remember, however, if your agent is an expert in the area then they will know what is available within your needs and price bracket.
It can be a good idea to approach a bank when you start your search to have your loan pre-approved. This means that a bank qualifies you for an amount so you know at the outset what you can afford. The bank will still want to value the property when you do make an offer but at least you know what you can afford to buy.
Once you find the property of your dreams (or one that matches your pocket) you will sign a Sale Agreement. This agreement will be taken to the Seller to accept and once accepted you have a deal in hand. The deal may be subject to finance (a bond) but with pre-approval this will most likely be a mere formality. If you are a cash buyer then it is even easier!
The Seller will nominate their conveyancer to attend to the transfer and once the conveyancer has been instructed they will do a number of things:
- They will write to the current bondholder asking for a copy of the title deeds and for any discharge figures for the existing bond
- They will contact you and the seller to get copies of Identity documents, copies of utility bills (for FICA) and your income tax details
- The conveyancer will draft the various conveyancing documents and affidavits and ask you and the Seller to come in to sign the documents. As the Purchaser you will be given a pro-forma invoice which will list the various amounts which you as Purchaser are liable to pay and which the conveyancer will require you to pay soon after presentation of the Invoice.
- The conveyancer will also contact the local authority to establish what the rates are on the property and will arrange to pay the rates and obtain a Rates Clearance Certificate.
- In the interim the bank who has granted your mortgage will contact the transferring conveyancer to get a copy of the title deeds and will advise what amounts are available for bank guarantees to be issued.
- The Conveyancer acts as a project manager and liaises with the Purchaser, the Seller, the Municipality, the Receiver of Revenue, the Banks, the bond conveyancers and the prior mortgage conveyancers who will attend to cancelling the existing mortgage.
- Once ALL of the documentation has been signed, Rates Clearance Certificates issued, Bank guarantees issued and received and the Receiver of Revenue has been paid the transfer duty the transferring conveyancer will liaise with the other conveyancers to lodge the deeds in the Deeds Registry for them to be examined by the Registrar of Deeds.
This process takes between eight days and two weeks and if everything is in order you will become the proud owner of your new home. If any of this is unclear or if you need further advice please contact MIKE FORSYTH of MGF Attorneys who will be glad to assist you.