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The concept behind buying directly from a developer is to purchase a unit ‘off-plan’, thus avoiding having to pay transfer duty, as the developer has to pay VAT.
Off-plan means that your unit has yet to be constructed. On completion you may then take occupation of the property.
The developer will require a deposit to secure your unit. When buying off-plan you must be aware of what is included and what is excluded. It is your responsibility to ensure that final payment is not made to the seller/developer prior to occupation taking place, as you could be liable for interest and repayment of the bond.
Ensure that you view the development plan and enquire about the time scale and number of planned future phases in a very large complex.
You may be able to change aspects of the interior decorating when buying off-plan. This means that some finishes may be changed to suit your individual needs, but this may mean an increase in the unit price.
Ensure that you are dealing with a reputable developer who has a well-known and proven track record (investigate the developer’s credentials before making a commitment to purchase a unit). The developer is the owner of the land and will be responsible for having opened a sectional title register. Simply put, this allows him to sell portions of the property which means you buy the title to a specified unit (not the land).
Establish whether the developer is using the services of a reputable builder. Your purchase agreement will be with the developer, so any dispute you might have regarding unsatisfactory workmanship, delays or building defects must be directed to the developer and not to the builder or the financial institution financing the development.
Remember by choosing us for a loan, you will get professional advice to make sure you are getting the best deal possible.
CONTACT US
Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.
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Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za
www.mortgagepluscc.co.za
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