Purchasing a residential properties involves some critical steps that must be undertaken by the prospective home owner. These stages include:
- Select a mortgage facility and determine how much you can afford to pay for your new home, and ascertain the mortgage for which you would qualify.
- Ensure that you have the deposit readily available (10% of the sale price of the property) as, when you have found your desired property, you will be required to pay the deposit to secure the purchase, usually within 4 days of your offer on the property being accepted.
- Decide on the area you would prefer. Consider the size of the property you desire, neighborhood, services, security and proximity to facilities.
- Contact a reputable real estate agent.
- Examine the houses that you prefer carefully. The electrical wiring, plumbing, condition of the woodwork, roofing, masonry work, cupboard work and the land on which the property sits.
- Should you have any doubts on the realistic value of the property, have a valuation done to determine the correct value.
- Be aware that the real cost of the house includes the cost of required renovation and repairs.
- Have your real estate broker or your lawyer prepare a Purchase Agreement, which should be signed by both vendor and purchaser on payment of the 10% deposit. Review all clauses in this agreement. Usually 90 days are given to complete the transaction.
- Request from the Vendor, a copy of the Deed for the property, copies of the Land and Building taxes, up to date Water and Sewerage (WASA) receipts, a WASA clearance certificate and any other title documents that your Attorney may request.
- Take out an insurance policy to cover the amount of the mortgage.
- Establish the extras that will be payable on closing, stamp duty, legal fees and valuation charges, in order that there are no surprises at the closing of the transaction.
- On closing, you will be required to sign the Deed in the lawyer’s office and all monies finalized at this point.
- To transfer your electricity service from the previous owner to yourself, the electricity commission will require a copy of your new Deed, together with a payment of $95.00.
- Responsibility for the payment of TSTT bills can be changed by presenting an authorization letter from the previous owner together with a request from you.
- Mortgage payments should always be made on a timely basis to avoid unnecessary interest charges. The mortgage/lending company can foreclose on your home if arrears accumulate.