As the industry leaders in real estate today, Century21 is expertly placed to provide information and back up to its clients. Since its inception in 1971, the company has proven through its deeds that it deserves the recognition it has received from the international real estate community. Reputation is based on past performance and the expectation of future delivery, and this acts as our promise to our clients as well.

The service expectations of our clients are high, and nothing gives us greater pride than delivering on those beliefs. Century21 is aware that there is more to the industry for our clients than merely buying or selling. It’s a complex industry and every facet is important as we are dealing with large amounts of capital. There are often legal issues which are likely to confuse the layman and these invariably change from country to country. Aside from that, there are also tax laws and various deals regarding home loans, marketing and queries on what constitutes a good, sturdy buy.

With Century21 you’re in capable hands. Our service doesn’t begin or end with the sale or purchase of your dream home. To be recognised as the No.1 real estate company on the globe means to go far beyond a simple understanding of service, and as such, we are there for all of your property questions and needs. As the purchase of property is likely to be the largest investment that you ever make, it is imperative that the process be made as stress free as possible.

To achieve that happy status, all that is generally required is that clients feel informed, competently guided and well advised. Understanding this is a very large reason for the success of Century21 today, and is the grounds for our detailed selection of staff, as well as the expert training and support of every member of our team. Century21 South Africa proudly carries the banner of the ultimate real estate team and will be there for every client – all the way to the satisfactory purchase of their dream home, or the sale of their old one.

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Legal Advice

SALE AND PURCHASE OF IMMOVABLE PROPERTY

  • In terms of the Alienation of Land Act 68 of 1981 (as amended) conditions relating to the sale and purchase of immovable property not reduced to writing will not be binding upon the parties to the Agreement.
  • It normally takes approximately 6-8 weeks to register a transfer of immovable property where the purchase price is paid by cash or via a bond. If the purchase is financed from other means the process will take longer.
  • Both the Seller and Purchaser are required to supply the Conveyancing Attorneys with copies of their Identity Documents, Divorce Orders (if applicable), Marriage Certificates (if applicable), Antenuptial Contract (if applicable) and a Utility Bill not older than 3 months containing the physical address of the person (FICA document).
  • Registration costs are payable by a Mortgagor (Purchaser) when he registers a Mortgage Bond. When that bond is later cancelled, cancellation costs are also payable by him.
  • Transfer costs are payable by the Purchaser to the Conveyancing Attorneys on request and prior to registration of the transfer.
  • A rates Clearance Certificate has to be obtained from the Local Authority when transferring immovable property. The Seller has to pay 4 months assessment and basic municipal charges in advance for this purpose.
  • If the property is a sectional title unit or in a cluster development, 3 months levies are also payable in advance to the Managing Agents or Home Owners Association of the property.
  • An Electrical Compliance Certificate less than 2 years old is transferrable from the Seller to a Purchaser, provided that no structural changes have been made to the property since date of issue.
  • The Tax Reference numbers of the Seller and Purchaser must be supplied to the Conveyancing Attorneys and their personal tax must be in order before SARS will issue a Transfer Duty Receipt for the transfer.
  • A Seller who has an existing bond to cancel when he sells his property, should give his Bankers 90 days notice of cancellation to avoid paying penalty interest on cancellation of the bond.

Courtesy of Du Plessis Van Loggenberg Attorneys

Tax Requirements

TRANSFER DUTY (TAX) CALCULATIONS

When it comes to property tax requirements and other legal duties involved in buying or selling a property, you need to know that you are in capable hands and that you have all the information needed to fully understand the process.

Transfer Duty (tax) is payable by the purchaser. This tax is paid to the conveyancer who in turn pays it over to The Receiver of Revenue and obtains a Transfer Duty Receipt prior to registration. This is all according to the terms of the Transfer Duty Act 77 of 1964.

Transfer duty is calculated as follows:

Transfer Duty is payable on transactions which are not subject to VAT, on the acquisition of property by all persons (including close corporations, companies and trusts).

In certain circumstances, property tax rates may differ as Value Added Tax (VAT) is applicable instead of Transfer Duty. This would only pertain to commercial properties or properties which generate income and are bought and sold as going concerns.

Contact one of our Century21 agents, who will advise you accordingly on the best ways to approach buying or selling a property. We can give you guidance on the legal aspects of all the transactions and, if need be, help you gain a better understanding of property tax.

Buying Property

Things to Consider When Searching for a Home

In terms of buying property, before deciding which house to purchase, consider your lifestyle, your current and anticipated housing needs, and your budget. It’s a good idea to create a prioritised list of features you want in your next home – you'll soon discover that finding the right house involves striking a balance between your "must-haves" and your "nice-to-haves."

To start, consider your lifestyle. If you love to cook, you'll want a well-equipped kitchen. If you're into gardening, you'll want a garden. If you're planning your office at home, you may want a room for a separate library or work space. If you have several cars, you may require a larger garage. Use this list as your search guide. Next, think about what you might need in the future. As you consider your housing needs, it's important to consider how long you may live in your home.

If you're newly married, you might not be concerned with a school district right now, but you could be in a few years. When buying property in South Africa, there may be several other points to consider as well. If you have aging parents, you may want to look at homes that offer living arrangements for them as well as you. When purchasing property, it’s important to think about your new home’s location, just as carefully as you do about a house’s features. Location is a huge part of any move.

In addition to considering the distance to work, you need to evaluate the availability of shopping, police and fire protection, medical facilities, school and day-care, traffic and parking, rubbish collection and even recreational facilities. Perhaps the most important decision is determining the type of home you want. Do you want a full title or sectional title? A townhouse or a detached single-family home? Do you want brick, stone, granite, wood, tiled or something else? Do you prefer a new home or an older one? Through all of this, make sure to talk to your real estate professional about where you want to live.

While more buyers now use the internet to gain access to listings or available properties for sale, it is still a good idea to use an agent. The agent brings value and protection to the process of purchasing property: he or she is available to analyse data, answer questions, share their professional expertise and handle all the paperwork and legwork that is involved in the real estate transaction. Century21 professionals have the expertise to help their clients narrow down their choices by sharing market trends and local information.

This ensures that, although buying property will most likely be your most serious financial obligation, it will also be your most rewarding.

Financing Property

FINANCE ADVICE

It is imperative and advisable that purchasers know what amount of property finance they would qualify for prior to embarking on the exciting journey of house hunting. The benefits of having this knowledge before making an offer on a property include:

  • Being in a more prepared and thus more powerful position at the price negotiating stage with a seller. On average, South African lending institutions would allow, at the most, 30% of total household gross income towards a bond (mortgage) payment.
  • Being able to focus only on the properties that are available within the price range that you, as a purchaser, qualify for. This will make your house hunting more relevant and more realistic - rather than heading on a disappointing wild goose chase.
 

It is also important to know that banks and lending institutions compete for your business. Therefore, tendering your requirements to a range of lenders, and not only your existing retail bank, will allow you to pick and choose which property finance package would suit you the most. The most effective way to go about this process of financing property would be to appoint a Bond (Mortgage) Originator.

One major advantage of going this route is that, rather than engaging a dozen institutions and dealing with huge amounts of complicated information, you are dealing with a single professional source whose primary concern is your satisfaction. The Bond Originator would approach the various lending institutions on your behalf and ensure that you get the best possible deal when financing property.

It’s one channel, it’s simple, it’s convenient, it’s not an administrative nightmare and it does not cost a purchaser anything. Century21 South Africa has an association with Ooba which is the leading bond originating company, and they may be accessed through any one of our agents or offices nationally. Achieve the best results on your property finance hassle free with the Century21 system and get the home you deserve.

Property Valuations

Guidelines for valuating your property

Even though a seller may have an idea of how property valuations work and what the value of their home is, it is imperative that they also take the opinion of a qualified agent that specialises in that specific area. Century21 agents are deployed as “area specialists” which is a guarantee from the agency that their opinion can be relied upon as a professional benchmark.

It isn’t a pleasant matter to discover during the beginning of your negotiations with potential buyers that nobody is interested in your price, which highlights the value of professional property valuations. South Africa is a tricky market and everyone from a first-time home buyer to an experience investor will reap the benefits of professional guidance and assistance.

It is always important to remember that there will most likely be other sellers in the area, at the same time. In this case, these other sellers effectively become your competition. In most instances, buyers view a property just once and make their decision there and then, so it is of the utmost importance to price the property right from the start. Naturally this will often be negotiated but negotiation means progress and options, whereas a firm no due to erroneous pricing is never a response you want from a reasonable potential buyer.

It is crucial for sellers to understand that the market is a significant factor in determining the selling price of a property. Many sellers waste a great deal of bargaining time by trying to ‘fool’ the market, which only ends up creating frustrations between the seller and the agent - as well as yielding unsatisfactory results.

Our agents are there to guide the seller into correct pricing by offering area expertise and a comparative analysis so that the property is sold in the quickest possible time at the best possible price. Contact a Century21 branch today for your expert property valuations.