1How much can I buy for?
Buying a new home will not only result in a larger bond repayment, but will also require large cash payments in respect of transfer costs, moving costs, etc.
2When may I occupy the property?
In every OTP there will be a clause that will stipulate the position regarding the occupation of the property. This actually forms a separate rental agreement where the parties agree that the property will be rented by either party at some or other stage under certain circumstances for an agreed amount and for a specific period.
3What does occupation mean?
Occupation is the right to occupy as well as the physical control over a property. On the date that you as a buyer are entitled to occupy the property, the seller must hand all keys to you in order for you to have unlimited access to all buildings on the premises.

When the OTP is signed the parties will agree on a specific occupation date. This helps you to arrange your move, as well as other practical arrangements. At this stage it is very difficult to determine the registration date or to link the occupation date with the date of registration.

It is very important that the occupation date is after the date of delivery of guarantees.

"No guarantees - no keys". The reason for this is to ensure that the transaction is safe before any costs are wasted. Occupational Rent:

OR is payable when the party occupying the property is not the registered owner of the property. When the seller is still the owner of the property and the buyer occupies the property, occupational rent is payable to the seller by the buyer.

If the property is registered in the buyer's name while the seller still has occupation, occupational rent will be payable by the seller to the buyer.

Voetstoots Clause The V.C. normally stipulates that the buyer acquires the property as it stands and that no guarantees are given in respect of the property by the seller and furthermore that the seller won't be liable for any defects, latent or patent. It is important to note, however, that the purchaser shall have the right of recourse despite the said V.C. in the event of:

* The defect existing at the time of the conclusion of the sale;
* Said defect influencing the suitability of the property;
The purchaser not being aware of the said defect;

• The seller is aware of the defect and fraudulently emitting to inform the purchaser thereof. Sellers should ensure that prospective buyers are properly informed about latent defects of which they are aware.
1What is the value of my property?
It is important to determine the market value of your property. A buyer's market may result in a lower valuation, whereas a seller's market conversely could mean a higher valuation.

Approach an agent: If you plan to ask an agent, make sure you consult an active agent who has a thorough knowledge of the area.

Obtain a CMA (Comparative Market Analysis): A CMA takes into consideration the statistics of other houses in the same area with the same characteristics that have been sold in the past few months. This will give you an indication of the R/m2 value.

Ask a valuator: A good valuator will take into account building cost, stand value and market conditions. Marketing my property – what are my options? Using an agent: Again, if you plan to use an agent ensure you approach an active agent who has a thorough knowledge of the area.

• The agent will be able to do a valuation of your property - free of charge
• Your property will be advertised at the agent's cost
• A good agent will probably have a list of qualified buyers in your price range
• An agent is a professional sales person who will be able to sell your property on your behalf
• An agent will be able to pre-approve possible buyers so that your time won't be wasted with offers from buyers who can't afford your property.
• An agent will have experience in completing the Offer to Purchase

Agent's commission of up to 7% will be added to the price you require for your loan.
Make sure that you choose a professional agent who is active in the area.
2Which agent should I use?
A good agent will have:
• A thorough knowledge of most of the properties currently for sale and at what price.
• Information on properties that have sold in the past 6 - 12 months. A good agent will also be able to identify them.
• Information on properties that have not sold for a period of 6 months or longer and for what reason.
• Information that has a positive influence on a specific area/property e.g. schools, hospitals, etc.
3Is there a standard contract (Offer to Purchase)?
Although there is no prescribed or standard format for an Offer to Purchase, a specimen is available with guidelines on how to complete it.

Guidelines on how to complete the specimen ~ Offer to Purchase (OTP)
• Fill in the Full Names,
• Identity Numbers,
• Telephone, Fax and Cell Numbers,
• Addresses,
• Marital Status,
• Spouse full names, and
• Spouse Identity number

For both the purchaser and the seller.
• Complete the Unit No, Complex and/Garage/Carport/Parking No. Body Corporate and Levy in case of a Sectional or full title unit and Street Address, Stand No and suburb in case of a dwelling.
• The purchase price is the amount the seller asks for the property.
• Complete the deposit amount as well as the time period in which the deposit will be paid.
• Complete the period you need to deliver guarantees (60 days).
• Complete the amount for which the purchaser is going to apply for a loan and the time period he needs to do this (e.g. 10 days).
• Complete the occupation date and occupational rent amount. The occupation date should be as close as possible to the date on which registration takes place. This date should never be earlier than the date on which guarantees are delivered. Occupational rates are normally calculated at 1% of the purchase price.
• Complete the date until which the seller has got to accept the offer.
• Here you must specify, for example, any movables that will be included in the price or any other special arrangements between purchaser and seller.
• Make sure that the contract is signed by all relevant parties and that each page of the contract as well as any amendments have been initialled.
4Who appoints the registering attorney?
A very important decision to be made by the seller when signing the OTP concerns the Conveyancer who will see to the registration of the property in the name of the buyer.

This decision is solely the prerogative of the seller.

If you do not know a conveyancer, you may ask the estate agent to assist you in this regard. The estate agent has regular contact with conveyancers and will be able to help you in appointing a well-known and professional transferring attorney.

Keep in mind that as the seller you would most probably want the transaction to be registered in the Deeds Office as soon as possible in order to receive the proceeds of the sale.

It is important to remember that apart from the registration process of the property into the buyer's name, the transferring attorney also has to see to two simultaneous registration procedures:

the cancellation of the existing bond that you as the seller had registered when you initially bought the property. • Registration of a new bond over the property by the buyer, which will serve as security for the bond to be used to pay the purchase price.

This situation normally results in a scenario where: • the financial institution where the existing bond is registered instructs its attorneys to see to the cancellation of the bond, and
• The financial institution that approved the new bond gives instructions to its attorneys to register the new bond.

If the conveyancing attorney who was appointed by you, the seller, serves on the panel of both the financial institutions concerned, unnecessary time-wasting correspondence can be avoided and the transaction process can be expedited.

Everything… from beginning to end… to minimize the time, hassle and risk associated with any property transaction.