APPLYING FOR A HOME LOAN?

BEFORE YOU APPLY FOR A BOND THAT INCLUDES TRANSFER COSTS
(Sometimes called an “all-inclusive bond”)

Planning ahead makes the transfer process smoother and far less stressful.

If you are planning to apply for a bond that covers both the purchase price and the legal transfer costs, it’s important to understand how these expenses work and what may still need to be paid upfront.

Important to Understand

Banks generally only release funds once the property transfer is registered in the Deeds Office.
However, certain charges must be paid before registration so that the transfer process can proceed.

These may include:

• Transfer duty (if applicable)
• Rates clearance certificates
• Levy clearance certificates (for sectional title properties)
• Other municipal or compliance requirements

Some Costs Must Be Paid in Advance

Because these certificates and clearances must be obtained before transfer registration, the relevant amounts usually need to be paid upfront.

The good news is that these payments are normally credited back or adjusted in the final transfer account once the bond funds are released.

Before Signing an Offer to Purchase

It is always advisable to discuss the financial structure of your purchase with professionals beforehand.

Speak to your:

• Property practitioner / estate agent
• Bond originator
• Conveyancing attorney

This ensures you fully understand the costs involved and avoid delays in the transfer process.