6. Home Loan & Property Buying F A Q s

• To whom is my deposit paid?
Depending on the stipulation in the contract, the deposit is either paid over to the Estate Agency or the Transferring Attorneys as they both have trust accounts where your money is protected. Never pay the deposit directly to the seller or the individual agent and always insist on the relevant receipts.

• Can I claim interest on my deposit?
Interest on deposit is usually paid to you after registration of transfer. You can request that either the Estate Agency or Transferring Attorney holding the deposit act in your interest by arrange for the deposit to be invested in an interest-bearing account.

• To whom is occupational rental paid?
It is easiest to pay occupational rental to the Estate Agency or Transferring Attorney who will either pay it directly to the seller or into the seller's home loan account. You can pay it to the seller directly but may then be asked to provide proof of payment.

• How long will the transfer take to register?
This usually takes about three months from the date of sale, depending on the circumstances and due dates for the home loan grant stipulated in the deed of sale. Registration can be completed within 6 weeks to 2 months from the date of sale if there are no complications or delays from any parties involved in the deal.

• What is the cost of transfer and home loan registration?
There are schedules of transfer and home loan registration costs available from both estate agents and conveyancing attorneys. Transfer costs are based on the value of the property and whether you are buying as a natural person or legal entity such as a Trust, close corporation or company. Home loan registration costs are based on the total registered value of the loan.

• When must my transfer costs be paid?
Transfer duty has to be paid in advance and is usually due a few weeks after the date of sale. Any delay in making this payment will unnecessarily delay the transfer.

• Who will register the home loan?
All the banks have panels of conveyancers that they use for home loan registration and one of these will be instructed to register your home loan. Your mortgage broker will have special rates with various attorneys on the banks' panels and it is advisable to use one of those. Furthermore, if the transfer conveyancer is also on the bank's registration panel it will be expedient to let them do the registration as well.

• Who will contact me on registration ?
Your conveyancer's secretary should contact you on registration and provide you with a final statement of account. Your estate agent may also confirm registration. Finally, your bank will send you a letter advising you of the registration of the home loan and the date when your first installment is payable.

Read about the home buying process