an application is just one of the many things you need to do in
order to obtain financing. You will need to provide a variety of
documentation to help your lender. The information required will
vary depending on the lender you choose, your loan option, and your
personal financial situation. But, the following is a list of
documents generally required when applying for a new home loan. (It
is recommended that you have these items available when completing
your application - this will ensure a fast and easy loan process).
See also our Finance
All Your Needs page.
copy of your ID document
copy of the offer to purchase containing seller and purchaser's
details (not necessary for a pre-approval application)
of income (Generally,
you will be required to produce a salary slip (not older than 2
months) or a letter from your employer with a breakdown of your
salary and deductions. If you are self-employed then you will
need to produce a letter from your accounting officer confirming
your income, or a statement of assets and liabilities.)
of financial statements - You may be required to produce a full
set of financials e.g. balance sheet, income statements etc,
which must be signed by your auditor.
of all the directors/ members
statement of the close corporation
and Articles of Association
resolution by the directors/ members of companies/ close
corporations advising who may sign the home loan application/
pre-approval for the purchase of the property
you've begun the application process, your property finance
consultant will advise you of all the documentation required for
your situation. But keep in mind - the more information you have
ready before you apply, the faster your loan will be approved.
may have bought a stand and you're wondering why it's taking so long
for registration into your name. You
could benefit immensely by taking advantage of and using these
hints to make your transfer speedy and effective. Here is a guide of what happens
when transfer takes place and your bond is being registered:
involved in the sale or purchase of an immovable property are:
Attorney (appointed by seller to transfer the property to the
Attorney (appointed by the bank granting the bond)
Attorney (appointed by the bank that holds the seller's existing bond)
same attorney could be dealing with more than one or all of the
Purchasing a property
buyer and the seller sign the Offer to Purchase. The buyer normally applies
for a bond from a loan institution.
2: Bond Approval
loan institution approves the bond and advises the Bond Attorney to register the
3 : Property Transfer
seller advises his Transferring Attorney to transfer the property. (Assuming that there is a bond registered over the property, the
Bondholder (normally a Bank) is requested in writing by the conveyancer to inform
him/ her of the amount required to cancel the bond. This is referred to
as the 'Bond Cancellation figures'.) Simultaneously, the Bondholder is asked for the
original Title Deed.
This is forwarded to the Bondholder's attorney, and subsequently
to the Seller's conveyancer.
At the same time, the Municipality (or Managing Agent in the
case of a Sectional Title unit) is asked for a Rates Clearance
certificate. This is a certificate, which is normally valid for a period of
three months and serves as proof that the Seller has met his
obligations for rates and taxes, and water and electricity. (To
establish this figure you can simply multiply the last
statement received from the municipality by three.) (Often, to speed up the process, the Seller will be asked to
furnish the Conveyancer with the funds required to obtain the
Clearance certificate from the Municipality (or
Managing Agent) prior to even signing the documents.)
4 : Bond Attorney contacts Transferring Attorney
Bond Attorney (the buyer's loan institution's attorney) advises the Transferring Attorney
(seller's attorney) of the amount
available for guarantees and requests the draft deed of transfer and
5 : Cancellation Attorney
Cancellation Attorney (the seller's loan institution's attorney) is requested to cancel the seller's bond upon
receipt of a guarantee for the amount owing.
6 : Transferring Attorney (Conveyancer)
Upon receipt of the Title
Deed and cancellation
transferring Attorney sends a copy of the deed of transfer and the guarantee
requirements to the Bond Attorney. The Transferring Attorney (conveyancer) prepares the
transfer documents for signature by the parties, who are then
requested to sign them. The buyer
pays the transfer costs and the Transferring Attorney then pays the
rates and taxes; and also the transfer duty to the Receiver of Revenue
in order to obtain a 'Transfer Duty' receipt.
At this stage, the Seller will
also be asked to
pay the Bondholder's attorneys the Bond Cancellation fee, which is
then transmitted to such attorneys.
Your conveyancer will need certain documents to proceed and
finalise the transaction. It is obviously advisable to ensure that the information and documents are
made available as quickly as possible. Here's a list of what he or
she will need:
Both The Seller & Buyer
Copies of Identity documents, Antenuptial Contract, Marriage
Certificate, Divorce Order (where applicable)
If the property is sold or bought by:
Copies of the Memo and Articles of Association,
Certificate of Incorporation, Certificate to Commence
Business, and a copy of the first page of the authorised
person's Identity Book;
Copy of the CK1 (Founding
Statement), and a copy of the first page of the authorised
person's Identity Book;
Copy of the Trust Deed, Copy of Letters of
Authority issued to Trustee/s, and a copy of the first page of
the authorised person's Identity Book.
From The Seller
Name of Bondholder/s (i.e. Bank, Branch and Account number).
Valid Electrical Certificate of Compliance. (The Estate Agent
involved in the transaction will normally be able to furnish you with the details of a qualified electrician should
you need assistance in this regard.)
7 : Bond Attorney
In most cases, the Purchaser will have applied for a bond over
the property. The Conveyancer liaises with the bond registration
attorneys immediately after being informed of who they are, and
furnishes them with the draft title deed. The
Bond Attorney prepares the bond documentation together with the
relevant account. The buyer signs the documents and pays the costs.
The Bond Attorney prepares and issues the necessary guarantees,
forwards them to the Transferring Attorney and prepares the bond
documents for lodgment in the Deeds Office.
8: Transferring Attorney
The Conveyancer will then
'call for guarantees' for
the outstanding amount of the purchase price. The guarantees will
only be received after the Purchaser has signed the bond
documentation with the bond registration attorneys and paid them.
(It should be noted that this usually happens before signature of
the transfer documents.) Once
the Transferring Attorney has received the guarantees, they are
forwarded to the Bond Cancellation Attorney.
9: Bond Cancellation Attorney
Cancellation Attorney obtains consent to cancellation from the bank
which holds the seller's bond.
10 : Documents prepared for the Deeds Office
all the documentation has been signed and the costs paid, the
transfer, new bond and cancellation bond documents are prepared by
the respective attorneys for lodgment in the deeds office.
11: Deeds Office
all of the above has been done, the documents are lodged at the
Deeds Office. By
the Conveyancer, Bond Cancellation attorneys
as well as the Bond registration attorneys all lodge on the same
day The Deeds Office
can take anywhere between 2 - 8
weeks to check the documents before they are ready for registration
by all the attorneys on the same day. The period should however be
about 10 to 14 days.
12: Bank pays out the loan
the day of registration:
Guarantees are payable at a specified place after 15h00. In practice payment is usually made the following
The Conveyancer will then draw a final account and pay the
Seller the proceeds from the sale as well as the balance of rates
and taxes. A final payment will also be made to the Purchaser in
respect of monies due (if any) in respect of his or her share of the rates and taxes and
any interest that may have accrued to him/ her from his/ her deposit. And the Estate Agent's
commission is also paid out.
you can see there are many different, and often, time consuming events
involved - some of which are
completely out of the conveyancer's control. This can be very
frustrating to all parties. But, then of course, just like
there are building contractors and there are building contractors, there are
also conveyancers and there are conveyancers.
the main factors
that often delay the registration process are:
by the seller and/or buyer to provide their personal information.
by the seller to provide details of the bank holding the
existing bondholder delaying/not providing cancellation figures
and Title Deeds to the Transferring Attorney.
in receiving rates figures (local authority) and/or clearance
certificate (Transferring Attorney)
by the buyer to pay a deposit (if required).
in the provision of guarantees.
by the buyer to pay bond and transfer costs on time.
by the seller in signing the transfer documents.
by the buyer in obtaining government capital subsidy
approval/employee subsidy documents for new bondholders and
failure to comply with other requirements of the bank.
by the buyer in signing transfer and/or bond documents.
the Bond Attorney, Transferring Attorney and Cancellation
Attorney are three separate firms.
You Should Pay Your Bond Faster Than Required
is essential that you pay additional amounts into your bond account.
Any spare money you may have should go into this account. This is so
for a number of reasons:
your bond repayments are not tax deductible, while the interest on
any type of savings you may make is. In a nutshell this means that
if you're, for example, saving at 10% per annum you will have to pay
tax on the interest received on your investment. And if the savings rate is 10% (as per example) the bond rate is going to
be about 3-4% higher. So, when you pay extra money into your bond
you are actually saving at 14%. So you are immediately scoring 3-4%.
And on top of this it's a tax free saving.
if you have a look at the capital repayments as related to your
interest factor of your monthly payment you'll find that most of it
is interest for a large number of years.
use the calculator below to work out your savings when you pay
additional amounts on your monthly installments. It is one big