PROCESS & INFORMATION RELATING TO THE PURCHASE OF A UNIT FROM BOUKORP

Initial process

• Peruse the site plan and price list and decide which unit you wish to purchase. Once decided you will be required to sign an Option to Purchase in terms whereof you will be required to pay a deposit of R10 000.00 into the Attorneys Trust account (provided to you on signature of the option) within 3 (three) working days. Please send proof of payment of the deposit to Boukorp @ info@boukorp.co.za .
• On receipt of proof of payment you will be provided with the Extras List which list will indicate the majority of requested extras by Purchasers which you may wish to consider to include in your unit.
• After confirmation from you as to which extras you wish to include (if any), you will be provided with a quotation and on acceptance of the quotation the Offer to Purchase will be drafted incorporating the extras and sent to you for signature. You will be afforded an opportunity to discuss any uncertainties or queries in regard to the Offer to Purchase or procedure with Lourene Thorburn and/or Karen Emmett;
• Upon signature of the Offer to Purchase, you will be required to provide the documents in support of the bond application to Boukorp. Such documents are listed on the attachment to the Option to Purchase;
• Boukorp will forward the information and documentation to the bond originator to enable them to apply for the mortgage bond on your behalf. All bond quotations will be discussed with you and you will be given the option to choose which bank you wish to proceed with. If the bank does not grant a bond which is sufficient to cover the purchase price and/or you are not in a financial position to pay the balance of the deposit required by the bank, the transaction cannot proceed and you will be refunded your deposit (subject to you co-operating with the bank in regard to all documents and information required for the purposes of the bond application).
• Once you have accepted a quotation from the bank, the bank will issue a final bond grant in writing to the bond originator and the attorneys and Boukorp will forward the necessary statement to you which will reflect the balance payable, which you will be required to sign in confirmation that the funds will be available by no later than 60 days prior to the occupation date;

Construction period

• Subject to the bond being granted timeously and the balance of the purchase price being secured, construction of the unit will commence approximately 3 - 4 months prior to the occupation date; No changes will be permitted to the plan after construction has commenced. You are welcome to visit the site from time to time to view the progress but you will nevertheless receive weekly sms updates on the progress of the building. Once the unit is built (approximately 8 – 6 weeks before occupation) Boukorp will contact you to arrange a date and time for you to choose your tiles, cupboards and carpets for the unit;
• Approximately 2 weeks prior to the occupation date you will receive a statement from Boukorp reflecting the amount payable in respect of occupational rental, deposits due to the council i.r.o. water and electricity connections, the balance of the purchase price and/or extras (if any) as well as the first month’s levies. Such amounts will be payable prior to handing over of the keys of the unit.
• Approximately 3 – 5 days prior to the occupation date you will be contacted by Boukorp to arrange a date and time for handing over of the keys of the unit which will take place at the unit itself. You will receive the keys no later than the date of occupation stipulated on the Offer to Purchase. . On handing over of the keys you will be required to sign the necessary form from your financial institution confirming that payment may be effected to Boukorp. Regretabbly no keys will be handed over without signature of such form by the Purchaser or both Purchasers (if applicable).

From occupation

• As the unit will not be registered into your name on the occupation date, you will be liable for payment of occupational rental to Boukorp on the outstanding balance at the date of occupation at ABSA’s prime overdraft lending rate from the date of occupation until the date of registration of transfer.
• Unfortunately it is not practically possible to register the unit into your name prior to occupation as the unit needs to be built before the land surveyor can measure the unit and submit the necessary sectional plans to the surveyor general for approval. Once the sectional plans are approved (2 – 4 weeks for approval), such plans are sent to the attorneys to enable them to draft the documents relating to the registration of transfer. The attorneys will contact you to arrange for signature of the transfer and/or bond documents. After signature of the transfer and bond documents, the attorneys will apply for a transfer duty receipt from the Receiver of Revenue. The Receiver of Revenue will not issue such transfer duty receipt if your Income Tax (personal or otherwise) is not up to date.
• Registration of transfer of the unit is subject to a rates clearance certificate being issued by the local council. Unfortunately time delays are being experienced in obtaining the necessary rates clearance figures and certificate from the local council. This is unfortunately not within our control but as it is in our best interest to register all units as soon as possible, we employ the services of a private consultant to attend the council’s offices on our behalf on a daily basis.
• Due to the fact that your unit forms part of a phase in a sectional title development, all the units which take occupation on the same date form part of a batch. All documents relating to such batch must be submitted simultaneously to the deeds office. It is accordingly imperative that you ensure that your income tax is up to date as it will cause a major delay not only for your transfer but also for the other units forming part of your batch if your income tax is not up to date.
• Once the attorneys are in receipt of the necessary transfer duty receipt, rates clearance certificate and other documents relating to the transfer, they will prepare the batch for lodgement in the deeds office.
• After lodgement of the documents in the deeds office, it takes approximately 10 – 14 working days to be registered.
• On registration of transfer of the unit into your name, Boukorp will calculate the pro rata occupational rental relating to the month of registration and refund any overpayment of occupational rental to you. We suggest that you budget on paying occupational rental to Boukorp for a period of 3 – 6 months to allow sufficient time for transfer to take place even though it is very unlikely that you will pay occupational rental for more than 6 – 12 weeks.

From Registration

• You will commence with payment of your bond to the financial institution the 1st month following registration of transfer. Such payment will be made by way of a debit order from the account which you have provided to the attorneys upon signature of the bond documents. You will no longer effect payment of any occupational rental from the date of registration.
• You will also be liable for payment of the monthly levy to the Body Corporate from the date of occupation. Boukorp will prepare the necessary statement and transmit it to you. You will also be liable for payment of the water and electricity for your unit from the occupation date. The water and electricity meters in respect of your unit’s consumption is read by Boukorp and added onto your monthly levy statement.
• You will furthermore be liable for payment of rates and taxes and refuse removal to the City of Johannesburg from the date of registration of the unit into your name. Due to the fact that the council takes a considerable period of time to update their records and transmit the first account, we suggest that you budget for approximately R650 – R900.00 per month from the date of registration of the unit into your name as you will no doubt receive an account from the council which will be backdated.

Touch Ups

• You will be afforded 3 opportunities to advise us of any touchs ups to be attended to at the unit. Approximately 7 – 14 days prior to the occupation date you may inspect the unit and advise of any touch ups. On occupation, you will be provided with 24 hour touch up and 6 month touch up lists. You will be required to complete these lists and submit them to our offices 24 hours and 6 months after the occupation date respectively. All touch ups are attended to during office hours only. Nicole at our offices will liaise with you to arrange a date and time to attend to any touch ups.

• Summary

  • Sign Option to Purchase and pay deposit
  • Obtain documents required for bond application
  • Choose extras
  • Sign Offer to Purchase and submit documents required for bond application
  • Accept bond offer
  • Construction commences
  • Pay balance purchase price
  • Choose tiles and finishes
  • Sign documents relating to transfer with attorneys
  • Report any defects
  • Take occupation of unit
  • Registration

• FINANCIAL SUMMARY – WHAT PAYMENTS WILL I BE LIABLE FOR AND WHEN? Once off payments

• 1. R10 000.00 securing deposit within 3 days of signature of Option

  2. Balance purchase price (any amount not covered by the bond) 60 days prior to occupation

  3. Bank initiation fee Prior to registration

  Monthly expenses

  4. Occupational rental/bond repayment Occupation date/registration date

  5. Levies Occupation date

  6. Electricity Occupation date

  7. Water Occupation date

  8. Rates and taxes and refuse removal Date of registration

  Please contact Lourene Tel: (011) 7953355 or e-mail lourene@boukorp.co.za for more information.