Loan

APPLICANTS WHO QUALIFY FOR A HOME LOAN

 

1.     INDIVIDUAL

Any natural person over the age of 21 years.

 

2.     TWO OR MORE INDIVIDUALS NOT MARRIED

Any natural persons over 21 years who wish to purchase a property in their joint names

 

3.     MARRIED COUPLE

Out of community of property: where both parties have full contractual power or the bond can be in either name provided that the applicant qualifies in his/her own capacity, or in joint names.

 In community of property: the bond must be registered in joint names.

 Foreign matrimonial property system:  contractual capacities according to the law of the country

 governing the marriage.

 

 

4.     MINOR

An unmarried person under the age of 21 must obtain consent from the Supreme Court in terms of Section 80 of the Administration of Estates Act 60 of 1965

 

5.     OFFICIAL/EMPLOYEE IN THE PUBLIC SECTOR

An applicant who qualifies for the Government Home Loan Scheme and is a government employee.

 

6.     CLOSE  CORPORATION

Provided that  Section 40 of the Close Corporation Act will not be contravened. (This sets the conditions under which a close corporation may finance the purchase of a member’s interest)

 

7.     COMPANY

Provided that section 38 of the Companies Act will be not contravened.  (This prohibits a company from financing the purchase of its own shares)

 

8.     INFORMAL BODY

Recognised churches and associations.

 

PROPERTIES  WHICH  QUALIFY

 

1.      HOUSES

Normal house

 

2.      SEMI-DETACHED  HOUSE

Two houses that are attached to each other which may be on separate stands and bonded individually as ordinary houses, or on one stand and bonded together under one bond, or sold as separate title development.

 

3.     TOWNHOUSE  OR  FLAT

The unit must be an approved sectional title complex and compromise only of residential units .

 

 A.    BOND REGISTRATION

 

Parties involved in the sale or purchases of a property.

  1. Seller / Buyer / Estate Agent
  2. Transferring Attorney  (appointed by the Seller to transfer the property to the Buyer’s name)
  3. Cancellation Attorney

(appointed by the Bank or Financial Institution cancelling Seller’s bond)

The same attorney could be dealing with more than one or all of the above.

 

CONVEYANCER, TRANSFER PROCESS AND DOCUMENTS REQUIRED +

 Conveyancer/Transferring attorney

A conveyancer is an attorney who is qualified and authorized to prepare and execute documents in the Deeds Office.  He is also personally responsible for ensuring that the terms, obligations and finances relating to the transaction are strictly adhered to.  After the agreement has been concluded, ownership must pass from the seller to the purchaser . In Namibian law, ownership of immovable property passes only after the transaction has been registered in the Deeds Office.  It is the conveyancer’s duty to attend to these details.  He is usually appointed by the seller.

B . The transfer process

When the conveyancer receives the copy of the Agreement of Sale, the following is set in motion:

 

1         Assuming that there is a bond registered over the property, the conveyancer asks the bondholder (usually, a bank) in writing what amount is required to cancel the bond.  This is referred to as the cancellation figure.  At the same time, the bondholder  is asked for the title deed.  This is forwarded to the bondholder’s attorney, and subsequently to the seller’s conveyancer.        

2         At the same time, the bondholder is asked for the title deed.  This as forwarded to the bondholder’s attorney, and subsequently to the seller’s conveyancer.

3         The municipality  (or managing agent in the case of a sectional title unit) is asked for a rates clearance certificate.  This is a certificate usually valid for a period of three months and serves as proof that the seller has met his obligations for rates and taxes, water and electricity.  The seller has to pay his rates and taxes in advance for this period of 3 months.

For an estimate of how much this will be, the last statement received from the municipality has to be multiplied by three.  The purchaser is requested to contribute an amount  which varies from area to area, and upon transfer, the seller is refunded pro rata.

4         Upon receipt of the title deed, the conveyancer prepares the transfer documents for signing by the parties, who are then requested to sign them.   At this stage, the seller will asked to pay the bondholder’s attorneys the bond cancellation fee.

 

 

  1. Conveyancing  fees are calculated according to a tariff determined by the Law Society.   The Purchaser is usually liable for the transfer as well as the fees for bond registration.

HOW TO CALCULATE TRANSFER DUTY

 

Up to N$ 400 000 (0%)

Above  N$400 000 and not exceeding N$800 000 (1% of the said  amount exceeding N$ 400 000)

Above N$800 000 and not exceeding N$1 500 000 (N$4000 plus 5% of the value exceeding N$ 800 000

Above N$1 500 000 ( N$39 000+8% of the said value exceeding N$ 1 500 000)

  1. Upon signature of the documents by the parties, the conveyancer collects the transfer duty and fees from the purchaser, pays the duty to the revenue and obtains a transfer duty receipt.
  2. In most cases, the purchaser will have applied for a bond.   The conveyancer contacts the bond registration attorneys immediately and furnishes them with the draft title deed.
  3. The conveyancer will then call for guarantees for  the outstanding amount of the purchase price, depending on how the contract is structured.  Assuming, for example, that the balance of the purchase price is covered by a bond obtained by the purchaser, guaranties will only be received after the purchaser has signed the bond documentation with the bond registration attorneys and paid the costs.
  4. After the documents have been signed, they are lodged at the Deeds Office.  Lodgement  is done in conjunction with the bond cancellation attorneys as well as the bond registration attorneys.  From this point, transfer normally takes between ten to fourteen days. 
  5. The conveyancer will then draw a final account and pay the seller the proceeds of the sale as well as the balance of the prorate rates and taxes.  If necessary, payment will also be made to the purchaser for any credit or interest that may have accrued to him from his deposit, and he will also pay the estate agent’s commission.

DOCUMENTS

THE FOLLOWING DOCUMENTS ARE USUALLY REQUIERED BY THE CONVEYANCER:

 

1       FROM THE SELLER AND BUYER

  1. Copies of the Identity Documents
  2. Copies of the Antenuptial Contract
  3. Copies of the Marriage Certificate
  4. Copies of the divorce Order (where applicable)

 

2       IF THE PROPERTY IS SOLD OR BOUGHT BY A COMPANY

  1. Copies of the Memorandum and Articles of Association.
  2. Copies of the Certificate of Incorporation.
  3. Copies of the Certificate to Commence Business.
  4. Copies of the first page of the authorized person’s Identity Book

     

3       IF THE PROPERTY IS SOLD OR BOUGHT BY A CLOSE CORPORATION 

  1. Copies of the CCI Founding Statement and/or CC2
  2. Copies of the first page of the authorized person’s  Identity Book

 

4       IF THE PROPERTY IS SOLD OR BOUGHT BY A TRUST

  1. Copies of the Trust Deed
  2. Copies  of Letters of Authority issued to Trustee’s
  3. Copies  of the first page of the authorized person’s Identity Book

 

5       FROM THE SELLER

  1. Name of Bondholder(s) i.e  Bank, Branch and Account number
  2. See other document:  Valid electrical certificate of compliance (should it be there)
  3. IDEALLY THE AGENT SHUOULD ADVISE THE PURCHASER WHAT THE COSTS OF TRANSFER AND BOND REGISTRATION ARE LIKELY TO BE AS TO PREVENT DELAYS