Question 1

What are the steps to buy a house for the first time in South Africa?

Accepted Answer

Get pre-qualified for a bond, research areas, view and inspect properties, make an offer with suspensive conditions, secure bond approval, appoint a conveyancer, pay transfer costs, obtain compliance certificates and register at the Deeds Office. Allow 8–12 weeks from signed offer to registration.

Question 2

How much deposit do I need to buy a house?

Accepted Answer

Most banks require 10% or more of the purchase price as a deposit, though some offer 100% bonds depending on your credit profile and the property. A larger deposit improves approval chances and reduces monthly repayments.

Question 3

What is bond pre-qualification and why does it matter?

Accepted Answer

Pre-qualification is an early assessment of how much a bank may lend you based on income, expenses and credit record. It sets a realistic budget before you house hunt and strengthens your position when making offers.

Question 4

What is an Offer to Purchase (OTP)?

Accepted Answer

An OTP is a legally binding contract between buyer and seller once signed by both parties. It records the price, deposit, suspensive conditions, occupation date, fixtures included and transfer timeline. Always have it reviewed before signing.

Question 5

What is a suspensive condition in an Offer to Purchase?

Accepted Answer

A suspensive condition must be fulfilled before the sale becomes unconditional. The most common is bond approval within a set period. If the condition is not met, the sale falls away and the deposit is typically refunded.

Question 6

What happens if my bond application is declined?

Accepted Answer

If bond approval is a suspensive condition and the bond is declined within the allowed period, the sale usually falls through and your deposit is refunded. Without a suspensive condition, you may be liable to proceed or forfeit the deposit.

Question 7

Should I inspect a property before making an offer?

Accepted Answer

Yes. A thorough inspection before signing can reveal structural defects, damp, roof problems, unapproved alterations and compliance issues. Use a checklist and consider a professional inspector for high-value purchases.

Question 8

What does voetstoots mean when buying property?

Accepted Answer

Voetstoots means the property is sold 'as is'. The seller is not liable for defects they did not know about, but must disclose known defects. Buyers can still claim if they prove the seller knew and failed to disclose.

Question 9

What is occupational rent?

Accepted Answer

Occupational rent is paid by the buyer who takes occupation before transfer is registered, or by the seller who remains after the agreed occupation date. The OTP should specify the amount and when it applies.

Question 10

What fixtures and fittings are included in a property sale?

Accepted Answer

Fixtures are permanently attached items (built-in cupboards, geysers, light fittings) and usually stay. Fittings are removable (curtains, appliances). The OTP must list everything included to avoid disputes at handover.

Question 11

Why must I check building plans before buying?

Accepted Answer

Unapproved alterations or missing plans can create municipal enforcement issues, insurance problems and transfer complications. Compare approved plans to the actual property and query any discrepancies before signing.

Question 12

What questions should I ask before making an offer?

Accepted Answer

Ask why the seller is selling, how long the property has been listed, known defects, approved building plans, municipal rates, HOA levies, existing bond, compliance certificates, included fixtures and any servitudes or restrictions.

Question 13

What is a 72-hour clause in an Offer to Purchase?

Accepted Answer

A clause allowing the seller to continue marketing the property. If a better offer is received, the first buyer gets 72 hours to match or waive suspensive conditions. Understand this before signing as a buyer.

Question 14

What is a snag list and when should I use one?

Accepted Answer

A snag list records defects and incomplete items at property handover — cracked tiles, faulty taps, incomplete paintwork. Create it at a joint walkthrough on occupation day, agree it with the seller, and attach to the OTP or occupation agreement. It protects both parties and prevents handover disputes.

Question 15

What if the bank valuation is lower than the purchase price?

Accepted Answer

The bank will only bond up to the valuation amount. You must pay the difference in cash or renegotiate the price with the seller. This is common in rising markets — always consider valuation risk when offering above comparable sales.

Question 16

What is a 'sale of existing property' suspensive condition?

Accepted Answer

This condition makes your purchase dependent on selling your current home first. It protects you from owning two bonds simultaneously. Specify a realistic deadline, marketing obligations and what happens if your home doesn't sell in time.

Question 17

What should I know about buying property on auction?

Accepted Answer

Auction sales are typically voetstoots and non-suspensive — no bond approval condition. You need finance confirmed before bidding. Pay deposit immediately on the fall of the hammer. Inspect thoroughly as there is no cooling-off period.

Question 18

When should I insure the property I'm buying?

Accepted Answer

Insure from the date risk passes — usually registration or occupation per the OTP. There is often a gap where neither party has cover. Arrange building insurance before occupation and confirm with your insurer in writing.

Buying Questions