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The buying process
Purchasing a completed property
Always obtain a Nota Simple on the property you are interested in to verify ownership before paying any funds or signing any agreement.
The Deposit
Once a property has been found, the price agreed and the Nota Simple obtained a down payment or deposit is made which is taken to be part of the purchase price. The amount of the deposit is agreed between both parties.
This deposit is non refundable therefore it is important to establish that you have the funds in place whether it be personal or by way of a mortgage, before signing the Private Contract.
Private Contract
Once the deposit is paid, the next step is the Private Contract. Although in reality the deposit and private contract take place at the same time.
This is the principle document whereby the seller and purchaser agree to the details of the sale/purchase i.e. property description, price terms etc.
Notary Deed and Property Register
In order to complete the transaction both parties take the private contract to a Notary where the remaining balance of the purchase price is paid be it private funds or mortgage funds and in order to make it in to a Public Deed for registration in the Property Register. In doing so all property taxes must be paid and the property is legally registered to the new owner.
The Public Deed clearly specifies the location, features, neighbouring spaces, boundaries, area, price, payment plan and conditions concerning possible delays in payment.
Purchasing an off plan property
A Nota Simple will not be available for the property as it has yet to be built but will be available for the land.
A Private Contract is signed and a deposit paid
The Private Contract stipulates the construction end date as well as price and payment terms during construction.
Once completed the developer must obtain a “first occupation licence” confirming the property is fit to live in and complies with all safety regulations.
At this point you are obliged to complete the purchase in the same way as a completed property by visiting a Notary. It is important to remember that a lender will only release mortgage funds at the point of signing and registration at the Notary.