Buying a home is a complex process, and there are several role players who will take you from dreaming of owning your own home to having the keys in your hands.

 Carl Coetzee, CEO of BetterBond, explains who does what when it comes to buying or selling a home:

 Estate agents facilitate the buying and selling of a home, acting as a liaison between the buyer and seller to negotiate the best deal for all parties. The agent will also offer guidance and market insight, and will manage the administrative aspects of the transaction.

• Bond attorneys register the bond in your name.
• Transferring attorneys manage the transfer of the property from the seller’s name to your name. These attorneys are usually appointed by and represent the seller. If the seller has a bond over the property, cancellation attorneys will handle the cancellation of the existing bond. If you buy a new development where there is no prior owner, cancellation attorneys will not be involved.
• The Deeds Office will register the property and bond in your name and issue the Title Deed. The original Title Deed is held by the bank from which you got your bond, so you will get a copy to keep for your records.
• The municipality issues the Rate Clearance Certificate for the property. This confirms that the seller does not have any outstanding rates due on the property. It must be issued before transfer can take place.
• SARS (South African Revenue Service) will receive the transfer duty and issue the Tax Clearance Certificate. Transfer duty is the property tax that is payable to SARS for properties valued at more than R1 million. This is not to be confused with transfer costs, which are the legal fees payable to the attorneys who transfer the property into your name.

 You’ve done the sums and used BetterBond’s online affordability calculator to gauge how much you will need to pay each month for your home. But have you factored in all the associated costs of owning a home? Make sure you consider the full cost of homeownership and budget accordingly, says Coetzee. These are some of the additional expenses to take into account for the buyer and the seller:

 Transfer duty is based on the value of the property and is payable to SARS each time a property changes ownership. The threshold is now R1 million, which means that there is no transfer duty payable on homes valued at up to this amount. If you buy for more than R1million, no transfer duty is payable on the first R1 million. There is also no transfer duty payable on a new development. However, VAT is included in the purchase price.

• Transfer costs, which are payable to the transferring attorneys, are calculated using a sliding scale based on the purchase price.
• Occupational rent is payable if you move into the home before it is registered in your name. The seller would also be liable for occupational rent if they remain in the house once the property has been transferred to the buyer. The occupational rent amount should be stipulated in the Offer to Purchase.
• Bond registration fees are payable to the bond attorneys who register your bond at the Deeds Office. These may differ from one law firm to another (but based on recommended tariffs) and will depend on your home loan amount.
• Bond initiation fees are payable to the bank for processing your home loan application. You can choose to include this fee in your bond, or pay it to the bond attorneys along with your bond registration fees.
• You will also have variable costs as you need to pay for FICA fees, electronic instruction fees and courier costs for documents relating to the sale. BetterBond has a Bond and Transfer Cost calculator that will help you budget for these additional costs.
• As the owner of the property, you will be responsible for municipal rates and taxes, such as water, electricity and even fibre. You should also budget monthly for any repairs or maintenance that needs to be done.  If you are in a sectional title property, there will be a levy for services, which covers costs such as building insurance, security, water and sewage collection.
• If you are selling your home, remember that you will have to pay early cancellation penalty fees if you do not give your bank three months’ notice when cancelling your bond.
• Also, as the seller, be sure to obtain compliance certificates for electrical, gas, the electric fence, water or plumbing and beetle. If anything needs to be repaired to obtain these certificates, you will need to carry the cost.
• Working with a bond originator is one aspect of buying a home that won’t cost you anything. BetterBond applies to multiple banks, on your behalf, to secure the most competitive interest rate on your home loan. The bank pays the bond originator a once-off fee when the home loan is registered, but this cost is not passed on to you and need not form part of your home-buying budget.

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