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The legal documents you’ll need when buying a house in South Africa

Thinking about buying a new home? For a smooth bond application, get ahead of the game by having your paperwork sorted.

Legal Documents for Buying a House

Article summary

  • The more supporting documents you have at the ready, the smoother – and quicker – your bond application process will be.
  • The documents required depend on your choice of lender and whether you’re buying the property as a private purchaser or as a company/close corporation or trust.
  • Your ooba home finance expert will advise you on all the paperwork required for your particular circumstances.

Whether you’ve already found your dream home or are simply wanting to apply for bond pre-approval, you’ll need to provide various documents to your bank or financing lender.

“The specific information required will depend on the lender you choose, your loan option, and your personal financial situation,” says Rhys Dyer, CEO of ooba, South Africa’s largest bond originator.

According to Dyer, the following documents are usually required when applying for a new home loan. For a fast and easy loan process, it’s advisable to have these items available when you are ready to complete your application:

For all applications

  • A copy of your ID document
  • A copy of the offer to purchase containing both the seller’s and purchaser’s details (not necessary for a pre-approval)
  • Proof of income. You will need to provide a salary slip (not older than two months), or a letter from your employer with a breakdown of your salary and deductions. If you are self-employed then you will need a letter from an accounting officer confirming your income, or a statement of your assets and liabilities
  • Six months’ worth of bank statements

For companies / close corporations

  • Copies of the company’s financial statements. You may be required to produce a full set of financials, i.e. a balance sheet, income statements, etc, which must be signed by an auditor
  • Details of all the directors/members
  • The founding statement of the close corporation
  • A close corporation certificate
  • A company certificate
  • A memorandum and articles of association
  • A resolution by the directors/members of the company or close corporation advising who may sign the home loan or pre-approval application for the purchase of the property

For Trusts

  • A copy of the Trust Deed
  • A resolution by the trustees advising who may sign the home loan or pre-approval application and property purchasing documents

It’s worth remembering that the more information you have ready before you apply, the quicker your bond will be approved. However, once you’ve begun the home loan application process, your ooba home finance expert will advise you of all the documentation required for your particular situation.

South Africa’s leading bond originator offers a range of home loan calculators to help people looking to buy a home determine what they can afford. Click here to access ooba’s free, online prequalification tool, the ooba Bond Indicator. Then, when you’re ready, you can get prequalified or apply for a home loan with ooba.

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