What Foreigners Need to Know When Buying Property in South Africa

If you’re a foreigner then buying property in South Africa isn’t too difficult. The best course of action is to find a respected and well known estate agent who can help you find the best property suited for your needs. When buying online or through a private sale then you have to be extra careful and make sure all of the procedures are followed. Contact an attorney to help you with the process to be extra safe.

Properties in South Africa

When employing an estate agent they receive roughly 8% commission from the sale. So when you contact them to help you they most certainly will do their utmost best to get you that perfect house. Just don’t let them force you into a sale, take your time, you’re the one with the money after all. Before buying I did some research by buying a local magazine,property south africa, to get information about buying properties in SA.

When property in South Africa is in the process of being purchased it need to be written down. This is call an offer to purchase.

This sales agreement needs to be signed by the buyer and the seller and any changes upon the document needs to be signed by both people.

This paper should contain the following:

1)price of the property, ie, What you will be paying for the house.

2)How much time it will take to transfer the ownership of the property to the buyer. Usually takes 2-3 months depending on the process.

3) The day the buyer can move in and how much rent he should pay if he decides to move in earlier. Which happens often with international buyers.

5)A clause found in most of these documents is called a “voetstoots clause”. This basically means that you buy the house as it is, Nails and all and the seller is not responsible for anything after the sale.(Unless in extreme cases which do not normally happen)

6) Everything that comes with the house.

7) Sometimes buyers will put down a deposit clause which is more a show of good faith than anything else. This will re-assure the seller as well, so why not.

There are a few more but these are some of the main ones making an appearance on the paper.

You can find a deeds office in most countries which regulates all property ownership and they keep an accurate and excellent record of transactions.

Property can be owned individually, jointly in undivided shares or by an entity such as a company, close corporation or trust or a similar entity registered outside South Africa.

The banks in South Africa will lend a non resident of South Africa 50% of the purchase price subject to the conditions of the bank, such as finding value for the property. The definition of a non resident is a person living outside of South Africa or someone who has stayed overseas for longer than 5 years (for loans from the bank). The purchaser is responsible of the payment of transfer costs and the costs of registering a mortgage bond over the property purchased.

I helped my British friend to buy a Camps bay property in Cape Town and the whole process went smoothly because he gathered all of the facts and I knew a few good agents.