It’s like anything, a team is only as strong as it’s weakest link. If you have a knowledgeable, experienced and passionate team with you when taking as big a step as buying property, you are likely to have a successful result. The Estate Agent is the first step. In many aspects the most important factor in this process. Most buyers, especially first time buyers, don’t have the contacts in the industry and rely on the Agent for services like Bond Origination, Attorneys, Electrical services, etc. If you buy a house from a good estate agent you are halfway there in making sure you are looked after throughout the entire process.
Most Estate Agents have strong relationships with their service providers, as there is a sense of trust and loyalty born from mutual good service between them. When it comes to a Bond Originator, an agent prefers having some control over the bond application process by knowing the buyers are in good hands and not left to their own devices, as sometimes happens when people approach banks directly for home finance. It’s the same for other service providers like the Electricians, Plumbers, Beetle Inspectors and Attorneys who all play a vital role in making the entire process a pleasant and stress free one. Here it is important to mention that it is crucial for the Bond Originator to handle a client’s personal information with the strictest confidentiality, while providing the Estate Agent with an indication of options regarding affordability, creditworthiness and overall chances of success, should they apply for a bond. It is a good idea to ask the Estate Agent who the service providers are they deal with and would recommend at the beginning of the process already.
When it comes to Attorneys there are a few important things to note:
• There are normally two separate firms involved with a property sale. One is appointed by the owner / seller to handle transfer of their property to the new owners and the other is normally appointed by the bank where you accept your home loan, to handle registration of the bond.
• Make sure that the Transfer Attorneys, especially, are well known and respectable in the industry, as dealing with the wrong crowd can cause endless headaches & quite possibly have big financial implications.
• The costs payable by you, as Home Buyer, for Transfer as well as Bond Registration are set fees with slight variance between different firms. Make sure you ask for an invoice early in the process so that you have time to research it and possibly get a 2nd opinion before paying.
• Discount can be negotiated, but remember, there is a lot of work involved with the transfer of a property and registration of a bond, so if you squeeze the attorney too much on their fee, you might find you’ve become the lowest priority for them vs other clients who pay the full fee or settled for a smaller discount. We all want to save money where we can, but the importance of having a good attorney firm in charge of this part of the transaction cannot be overlooked.
• The entire process of Transfer and Bond registration should normally not take more than 2 – 3 months, unless otherwise specified in the Offer To Purchase agreement between the parties.
Being involved in the property industry for quite some time, I have built up solid relationships with not only the different banks, but also other service providers as mentioned above. Feel free to contact me should you require the services of a good Estate Agent, Attorney and Electrical / Plumbing / Beetle certificate company.
Yours in Home Loans…
Franchise Owner – Cape Town
082 926 2884 021 180 4541/2 0866 355 496