| You may, or may not know, of the two options you have when purchasing a property, which is either Sectional Title ( more info ) or Full Title ( more info ).
Both the above options are covered by a compulsory National Home Builder's Registration Council Warranty, which is a 5-year warranty on the structure of the building.
We have outlined some of the required procedures for you below.
Once you have decided on the property you wish to purchase, the relevant securing deposit is to be paid to the attorney's trust account for safe keeping, on which the interest will accrue for your benefit.
Remember the price will include transfer and bond registration costs provided the Seller's bond originator obtains your mortgage finance and their attorneys are nominated to register the bond.
The agreement of sale is to be signed and the original to be sent to our office.
Once the agreement is signed and the securing deposit has been paid our bond originators are in a position to request the required documentation from you in order to make the bond application.
The following serves as a guide line only as each financial institution and your individual status may vary.
Non residents applying for a bond A non-resident is defined as a person (natural or legal entity) whose normal place of residence, domicile or registration is outside of common monetary area. The common monetary area refers to all countries that use the rand as their currency, that is:
• South Africa
• Lesotho
• Namibia
• Swaziland
All non-residents are governed by South African Exchange Control. The purpose of Exchange Control is to allocate capital resources, with the objective of:
• Ensuring adequate funds are received from abroad;
• Preventing excessive lending of local funds; as well as
• Efficient use of those domestic funds used for financial assistance to non-residents
The approval of finance is on condition that exchange control approval is received for a non-resident. The loan amount is determined on a one on one basis for every rand invested in the country. Therefore if the customer does not have any investment in the country the maximum loan amount would be 50% of the value of the property.
For approval of the Home Loan and exemption from Exchange Control the following documents are required:
Documentary Proof of the amount introduced and invested in South Africa , required prior to registration |
Certified copy of passport |
Letter of Employment (prior to grant) |
3 Months Bank Statements (prior to grant) |
Statement of Assets and Liabilities (prior to grant) |
Copy of Purchase and Sale agreement (prior to grant) |
South African residents, working overseas, that apply for a bond.
For South African's that have not formally emigrated from South Africa , normal South African credit lending rules apply. Customers are still viewed under exchange control as residents of South Africa .
The loan amount may vary between 80% and 100% depending on the individual application.
Should the customer have formally emigrated from South Africa they will be regarded as a non-resident and the following requirements will be applicable:
Documentary Proof of the amount introduced and invested in South Africa , required prior to registration |
Certified copy of passport |
Letter of Employment (prior to grant) |
3 Months Bank Statements (prior to grant) |
Statement of Assets and Liabilities (prior to grant) |
Copy of Purchase and Sale agreement (prior to grant) |
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