Information on purchasing a property - DonaVans

Please be advised that a signed Offer Letter is IRREVOCABLE.  Therefore, should the Seller accept your offer within the stipulated time frame, this offer will become legal and binding and will form the basis of the Agreement of Sale.

 

  • Before signing an Agreement of Sale, please ensure that you completely understand the terms and conditions of the sale and that you are fully acquainted with the property. It is the Purchaser’s right and responsibility.
  • It is the Purchaser’s obligation to provide the Property Negotiator with proof of your ability to pay for the property.  In entering into a signed Agreement to Purchase knowing full well that you have no ability to pay for it not only wastes valuable time, but may result in you being sued for damages and/or fraud.
  • Should you be selling another property to finance the property you wish to buy, this must be stipulated in the Offer Letter, which if agreed by the Seller, will form a suspensive/conditional condition in the Agreement of Sale.
  • Likewise, should you be applying for a bond, please ensure that this is stipulated in the Offer Letter and that you meet the salary stipulation of the Building Society/Bank.
  • Please understand that the term “Cash against Transfer” is a legal term meaning that the purchase price or balance of the purchase price must be paid either in cash or by written guarantee from a registered financial institution within a stipulated time according to the Agreement of Sale to be drawn-up (normally 7 – 14 days)  This period of time usually commences soon after the Agreement has been signed (and provided any suspensive conditions pertaining thereto have been met).  The Legal Practitioner attending to the transfer will legally tender transfer to you calling on you for payment of the purchase price or any portion thereof not covered by a Mortgage Bond) together with the costs of transfer of the property.  The term in an Agreement stipulating “Cash against Transfer” does not mean you may make payment only once transfer has been registered.  It means that the Legal Practitioner, having assured himself that all the funds have been paid to him in trust, will be in a position to make payment to the Seller, in cash against transfer, as soon as the transfer has been registered in the Deeds Office.
  • You are liable for Capital Gains Tax payable to Zimra unless the property is registered in your personal name, you are over 55 and your property is your Private Principle Residence.  You of course may obtain a Capital Gains Tax Rollover Execmption if you are buying a property for more than the sale of your property. 
  • The Seller has the right to choose the Conveyancing Attorneys.  The purchaser pays the transfer fees and stamp duty which is approximately 7 - 7.5% on the purchase price offered. We are able to provide you with more accurate figures when we know exactly how much you are offering.  (Please see attached conveyancing fees)
  • There are also fees payable should you be obtaining finance through bond facilities.  Once again, we can give you an indication of the amount needed here.  (Please bear in mind that Valuation Fees are charged by the Mortgagor over and above bond registration and stamp duty. (We recommend that you contact the Mortgagor directly for an idea of such Valuation Fee as they vary between institutions.)
  • In addition, you may be required to pay an estimation of rates for approximately 3 months in advance.  The Seller’s share of rates (i.e. from the beginning of such rates period to date risk and profit passes to you) will be refunded to you after registration of transfer.
  • Before signing an Agreement of Sale, please also ensure that all fittings are discussed with the Agent, e.g. garden sheds, pot plants and swimming pool equipment, satellite dish, trampoline.
  • Finally, don’t get caught up in looking for “the perfect property”.  Rule of thumb is to choose the 10 most important characteristics or features that you are looking for and if you find 7 of these in a property – seriously consider it – it may be the one!

 

Should you have any queries, please do not hesitate to contact us.

 

By Donavans Property Consultants

Vanessa Vos vanessa@donavans.co.zw

 

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