The process to buying a house or property can seem daunting as there are always documents and forms to complete. Find out how purchasing property through the IGrow Group of Companies makes this process simpler.

Whether you are purchasing property for primary use or as an investment, there are several processes you need to follow.

However, this does not need to be a tedious process. The IGrow Group of Companies aims to make paperwork like this easy to complete.

Find out how this works with our guide.

I have chosen my property, what comes next?

After choosing and paying your deposit on your property, we will transfer your files to IGrow Homeloans to start your bond application.

Each application is different, which means IGrow Homeloans determines what type of documents are required. Typically, you can expect to provide the following:

• Identity documents or passport
• Proof of physical address
• Company registration documents if purchasing in a trust
• Proof of physical address for company and its directors
• Proof of physical address of the trust and its trustee
• Trust deeds and letters of authority. (Only if the trust holds the shareholding.)

It is important to note that you have a 21 to 30 day period to finalise your bond application. This means it would be within your best interests to provide these documents as soon as possible.

What other costs can I expect?

When purchasing your property through the IGrow Group of Companies, the transfer and bond registration costs are likely included in your property.

What we do not include, however, are bank initiation fees. These fees are charged separately to the buyer for processing the bond application.

For the properties we typically sell, you can expect these fees to cost between R6 000 and R10 000 in either a lump sum or monthly instalments.

The good news though is that once you learn the outcome of your bond application, you will be able to make use of your reservation deposit. If your bond application is rejected, or obtained on 100% financing, a refund will shortly take place. But, if you successfully apply for a lower financing percentage, your reservation deposit will form part of the bigger deposit you will need to place on your new property.

Then you need to consider accounting fees if the buyer wishes to make use of IGrow Chartered Accountants. This fee will start from the date of registration of the legal entity.

In addition, your first fee will be reduced due to the annual returns you will need to make for the South African Revenue Services (SARS).

At this point, if your financial situation changes and you are unable to afford this bond, we recommend you contact your property investment strategist. If you are unable to find their contact details, fill out this form here.

What is a retention period?

For homeowners who purchase a new, unused property there is normally a retention period. This period commences from the date of the property’s handover and allows the homeowner to report any latent effects.

This serves a very specific function. Not only does this period offer homeowners a peace of mind, but you can disclose any latent effects which were not visible during the snagging stage.

Usually the retention period lasts three to six months, but you can find other unique specifics in the Building Agreement of Offer to Purchase.

It is also key to note that before this retention period begins, snagging takes place. During snagging the developer and IGrow Rentals look for any latent defects in the property before the handover takes place.

In addition, IGrow Rentals will also carry out an inspection before your retention period ends.

What is occupational interest?

In some cases, homeowners are required to pay occupational interest. This occurs when local authorities have issued occupation certificates, meaning the property is ready for occupation, but the property is not registered in the deeds office yet.

In this scenario the developer charges occupational interest, or rent, for occupying the property prior to registration.

Furthermore, it is important to note that you are required to pay this amount regardless if you have secured a tenant for your property as an investor. That is why IGrow Rentals recommends you begin to look for a tenant before the deed of sale takes place.

Only once the property is registered in the deeds office, which can take two months from when the occupation certificate is given, can the homeowner stop paying occupational interest.

In addition, the fees’ total amount can vary. Giving an estimated cost is also difficult, so you will find this in the deed of the sale.

Are you a property investor looking for someone to handle your rental admin? IGrow Rentals makes rental admin easy. Visit our website here to find out more information on the services we provide. 

Or, maybe, you are looking to purchase your first property? Perhaps you are looking to invest in your financial independence. Start your property journey today and speak to one of our specialists for free. Click here to book your consultation. 

IGrow Wealth investments is an authorised Financial Services Provider. For queries or concerns you can contact us on +27 21 979 2501 or enquiries@igrow.co.za.