Guideline for Buyers

1. Unless you are a cash purchaser, it is recommended that you have your bank pre-qualify you for a mortgage loan.  To do this the bank will need information concerning your income and expenditure and your assets and liabilities, as well as any additional security which can be offered.  You will then have an idea of the maximum loan for which you qualify subject to the bank inspecting the property.

 

2.   Once you have identified the property you wish to buy then a signed written agreement will be necessary before you have a binding deal.  The sale agreement should clearly set out the arrangements relating to the price, payment and occupation date, and whether or not the purchase is conditional upon events such as the sale of a prior property or the approval of a mortgage loan application.  The agreement should also specify whether you require the property to be inspected by a trained expert such as an engineer or builder, whether the boundary beacons need pointing out, whether the building plans need to be produced for inspection, whether you need your attorney to inspect the title deeds for onerous conditions, and so on.  You should ask your attorney to approve the agreement before you sign it.

 

3.  If the property is in a gated estate or complex then it is advisable to read the Rules before you submit an offer. The Rules have various names and include the Management Rules, Conduct Rules and Home Owners’ Association rules and regulations.  The Rules deal with a variety of important issues relating to community living, such as whether pets are allowed, contributions to levy funds, restrictions on washing of cars and so on.

 

4.   As the buyer you will have to pay the costs of transferring the property into your name, in addition to the purchase price of the property.  These costs include:

 4.1.       the fees and disbursements of the conveyancer;

4.2.       the transfer taxes, whether transfer duty or value added tax (if applicable);

4.3.       the bank’s costs associated with the mortgage loan;

4.4.       the cost of registering the mortgage bond in favour of the bank.