All Your SA Home Loans Bank Property Questions Answered

SA Home Loans is a specialist mortgage provider using safe and secure, but innovative new ways to offer a range of home loans to South Africans. Banks get their funding for home loan finance from wholesale and retail money and capital markets and lend the money to consumers.

SA Home Loans is a specialist mortgage provider which uses an established and accepted means of funding in other markets all over the world. Your security is exactly the same as with a bank, as your home is registered in your name at the Deeds Office. And SA Home Loans have substantial shareholders such as Standard Bank, Public Investment Corporation (representing the GEPF) and the Bolatja Hlogo Consortium; we are solidly profitable and have over 100 000 satisfied clients.

We are therefore not a mortgage originator who operates in a similar manner to an insurance broker. Mortgage originators get home loan offers from various financial institutions on your behalf. The financial institutions pay the mortgage originators a fee for finding them new clients. This is not what we do. We are the financial institution that provides you with the home loan directly, and services you as our valued client thereafter.

For more information about SA Home Loans please visit our website or call us on 0860 2 4 6 8 10.

SA Home Loans offers a fresh alternative to South African home owners. We’re mortgage specialists who are 100% focussed on offering your innovative home financing that stays in tune with your lifestyle and your changing needs, for life. We take the time to find out your needs, we come to you, and we work with you to find the right product options for your unique needs. Plus we offer related home products such as home owner’s cover and bond protection cover. In a nutshell, we’re risk free, innovative mortgage specialists.

In addition to providing home financing for new purchases, we also specialise in “switching”. What is switching?

When you already own a property and have a home loan and wish to switch your home loan to another provider to put yourself in a better position financially. This could be because you get a better rate, but there are lots of other considerations too. You may switch to get better access to the equity in your mortgage or to take advantage of product features that reduce your risk, or you could be looking for better service and support from your home loan provider.

For more information about SA Home Loans and the home financing options that are available to you, please visit our website.

A sale in execution is a public auction of a bonded property by the Sheriff of the Court. A sale in execution is usually the last step that is taken when clients are unable to service home loan repayments; the home loan is in arrears, and all other efforts at rehabilitating the loan has failed. In addition to being listed on Private Property, properties sold in this manner must also be advertised in the Government Gazette and two local newspapers.

A sale in execution happens at a specified date and time at the property in question. The sheriff will describe the property, note the conditions of sale and start the bidding process. Interested buyers bid against each other until the highest bid is achieved. Once the bidding has stopped, the sale in concluded at the fall of the sheriff’s hammer. As SA Home Loans is not the legal owner of the property it cannot decline the final bid price, even if the property is sold for lower than the outstanding balance on the loan.

The conditions of sale mentioned above will cover items such as deposit due, when guarantees for the balance of the purchase price must be provided, commission payable to the sheriff, that the buyer is responsible for occupation; it may stipulate that the buyer is also responsible for any outstanding levies, rates, taxes; and various other conditions that may also be applicable.

At the Sheriff’s Auction, if its reserve price was not met, SA Home Loans has the option to “buy-in” the property. This means that once transfer is complete it will be become the legal owner and will have the right to market and sell the property. These properties are usually priced below market-value and thus represent excellent value to buyers and investors. Make your investment in the property market now! Limited properties are available.

Benefits of buying a repossessed property

1. No transfer duty is payable by the purchaser, if you are a non-VAT vendor.
2. Property rates and taxes (including all arrear rates and taxes) will be paid by SA Home Loans until the date of registration.
3. The transfer is often much faster.
4. In many instances repossessed properties may require repairs; this can create an excellent opportunity for an investor to upgrade the property for a profitable resale.

The steps involved in buying a repossessed property

1. Once you have found a repossessed property that you are interested in contact the agent listed to make an appointment to view the property or to make an offer to purchase by completing our sale PIP agreement.
2. SA Home Loans will confirm whether your offer to purchase is accepted or not. This process can take up to 21 working days. Should your offer to purchase be approved, written confirmation will be forwarded to you and a transferring attorney will be nominated by SA Home Loans.
3. If the offer to purchase is accepted, you will have to follow the normal procedures of applying for home loan finance.

General information about repossessed properties

1. All properties are sold “voetstoots” and SA Home Loans will not undertake any repairs.
2. The Electrical Compliance Certificate is to be obtained by the purchaser.
3. The Entomologists Certificate is to be obtained by the purchaser.
4. Only conveyancers on SA Home Loans panel of conveyancers will be used.
5. SA Home Loans does not warrant that the purchaser will be able to obtain vacant occupation of the property.

“Sell Assist” is a service that we provide to our clients in financial distress that allows SA Home Loans to market and sell the property on their behalf.

The process begins by the client signing a sole mandate that allows SA Home Loans to instruct reputable estate agents to market the property exclusively. Our clients are advised of the progress at every step and if an appropriate offer is received to the client and SA Home Loans satisfaction, the client will be required to sign the Offer to Purchase and normal transfer procedure will follow.

In an insolvent estate the bondholder’s liabilities exceed assets and a successful application has been made to the High Court for the bondholder to be sequestrated (in the case of an individual & trust) or liquidated (in the case of a company &, CC). A trustee or liquidator is appointed by the Master of the relevant High Court who is then responsible for investigating the estate, determining the extent of indebtedness and selling all movable and immovable assets.

Steps involved in buying an insolvent estate property

1. Once you have found a property that you are interested in, please contact the trustee listed to make an appointment to view the property or to make an offer to purchase by completing our sale agreement.
2. The trustee will liaise with SA Home Loans regarding the offer, and will confirm whether it is accepted or not. If acceptable, the trustee will sign the offer to purchase on behalf of the estate. The Offer to purchase will stipulate the deposit that will be payable at this stage.
3. Depending on how far the trustee has progressed in winding up the estate, consent from the Master of the High Court may also be required before the sale can proceed.
4. Thereafter the normal property transfer process will commence.

In the unfortunate event that a SA Home Loans client passes away, one of the options available to the beneficiaries of the estate is to sell the bonded property. The process starts after the estate is formally reported to the Master of the High Court and the Master subsequently appoints an Executor. The Executor is responsible for administering the estate which includes settling all outstanding liabilities with creditors, finalising tax accounts and distributing the remaining proceeds of the estate to the beneficiaries.

Steps involved in buying a deceased estate property

1. Once you have found a property that you are interested in, please contact the executor listed to make an appointment to view the property or to make an offer to purchase by completing our sale agreement.
2. The executor will liaise with SA Home Loans regarding the offer, and will confirm whether it is accepted or not. If acceptable, the executor will sign the offer to purchase on behalf of the estate. The Offer to purchase will stipulate the deposit that will be payable at this stage.
3. Consent from the Master of the High Court will also be required before the sale can proceed.
4. Thereafter the normal property transfer process will commence.

A special power of attorney (or SPOA) is an agreement between SA Home Loans and our client where we have been given the authority to market and sell the property. Unlike “Sell Assist”, in an SPOA, SA Home Loans has the right to consider and accept offers of behalf of the client.

Once you have found a property that you are interested in, please contact the agent listed to make an appointment to view the property or to make an offer to purchase by completing our sale agreement. The Agent will liaise with SA Home Loans regarding the offer, and if acceptable SA Home Loans will sign the offer to purchase. Thereafter the normal transfer process will commence.