Guide for Foreigners Buying Property in South Africa
Many potential investors would wish to buy property in other countries. What they lack is the basic information to guide them through the necessary steps to follow to accomplish this. If you are such an investor, we are here to help you achieve your longtime dream by buying property in South Africa. One thing that should make you smile is that foreigners are allowed to buying property in South Africa. You will not be required to obtain some special permission in order to make your purchase. There are a few things you need to note when buying property in South Africa.
Source Of Financing
As a foreigner interested in buying property in South Africa, the first thing is to make sure you have the money it will take to buy the intended property. If you do not have the full amount, you need to know who will finance your project. There are a number of local financing companies that you can go for. Make sure you know their interest rates so that you cannot be overcharged.
Work With An Estate Agent
Once you have secured the source of financing, you need to locate an estate agent. The estate agent will help you locate the kind of property you are interested in within a short period of time. The agent is capable of getting the right price when you’re buying property in South Africa. The agent will also know about the mortgages and any other accrued charges that might be involved.
Search To Be Carried Out
A search will have to be carried out to establish that the person selling the property is the real owner and all the other documents are legal ones. It is always possible to have some conmen trying to clean your pocket.
Register With Local Government Office
If it is a necessity, you should register with the local government in order to complete your purchase. If there are fees to be paid, this is where you will learn about them.
Making The Purchase
You will be required to make a deposit of which the amount is negotiated, just as the final price for buying property in South Africa. In most cases a 10 percent deposit is paid. The agent will prepare a formal letter of offer which will be submitted to the seller for approval. Both parties will have to sign once they come to terms. After signing the letter of offer, it becomes a Sale Agreement that is legally binding to both parties. The best way is to make sure you hire a conveyance or a real estate attorney to handle all the formal processes of transfer involved. The identification documents of the seller are taken to the deeds registry for the registration procedure to take place. These procedures can take about six to eight weeks to complete. After the buyer is recorded as the new owner, the remaining balance is expected to be cleared. The title deed is then delivered by the conveyance to the new owner.