What are the costs involved in utilising a bond originator?

Absolutely nothing! A bond originator fulfills an outsourced sales team function for the banks and derives its revenue from the banks for the submission and registration of home loans. The bank does not charge the customer anything extra for using a bond originator and is an incorrect perception.

What savings can I expect from using the services of a bond originator?

Cornerstone will save you money during your home buying experience. Our relationships with the banks and service providers allow for better negotiation regarding low interest rates and discounts in legal and conveyancing fees. Clients may be completely exempted from paying any registration fees if the loan is over R200 000 and if Cornerstone Home Loans’ registering attorneys are utilised.

Does Cornerstone utilise any other bond originators to provide its services?

No, Cornerstone Home Loans operates directly with the banks. We have agreements with Absa, FNB, Nedbank and Standard Bank. This gives the client the advantage of enhanced savings as well as a single tier processing of the home loan.

What costs can I expect to incur during the property/home purchasing process?

Buyers need to be aware of the standard costs that are generated during the home buying process. It has already been indicated that using Cornerstone’s services, results in savings and not further costs and that their services are free to the client. Standard costs will apply and you can discuss each of them with a representative from Cornerstone Home Loans, or your estate agent, to clear any uncertainties:

	Deposit (if applicable) – can be requested at the seller’s discretion to secure an offer to purchase and is payable to the seller’s transferring attorneys (or to the seller’s estate agent).
	Initiation fee – banks may charge an initiation fee to cover their cost of processing a loan. This is a once-off fee, which is applicable to every new home loan. Find out from your bank or via Cornerstone if this cost applies to your home loan application.
	Assessment fee – For the application of an ordinary residential loan, banks may charge 0.2% of the value of the land and existing improvements to cover the costs of an assessor. Assessment of the property’s value is required to secure a loan from a bank.
	Bond registration costs – costs incurred for the registration of a mortgage bond and are payable by the buyer to the conveyancer (registering attorney) and includes the stamp duty costs and conveyancing fee. The conveyancer is entitled to charge for postage and petty fees.  It is advisable to establish these costs before committing to a registration attorney. Should a client utilise Cornerstone Home Loans’ approved registering attorneys and if the loan amount exceeds R200 000, then Cornerstone Home Loans will pay the registration costs on your behalf.
	Transfer costs – costs incurred for the transfer of ownership of land. These costs are payable by the buyer to the transfer attorneys. The seller selects the transfer attorney. These costs include the conveyancer’s fee, stamp duty and transfer duty, which is a tax paid to the South African Revenue Service. Transfer duties are not payable when the property is purchased directly from a VAT registered developer or contractor, or where the property value, including its improvements, is less than R500 000.
	Monthly home loan installments – the capital re-payment portion is not the only cost included in a monthly installment of a home loan, but will also include the interest portion as charged by the bank, bank charges and an insurance premium (if applicable). Other costs to consider include:

		Foundation – check for obvious cracks or apparent shifts in the foundation
		Roof and ceiling – check the condition, is there any mold or are there any broken tiles
		Attic – what does the interior of the roof look like?
		Quality and workmanship – what type of renovations do you foresee will be necessary?
		Plumbing – Flush the toilets, open the taps, are there any unusual noises or malfunctions?
		Electrical – put the lights on and off, does everything appear to function correctly?
		Appliance condition – If the stove, gas braai, gas fireplace etc are included, what condition are they in?
		Drainage – does it appear good and is it away from the house?
		Trees – are there any trees lifting the driveway, pushing the perimeter walls or encroaching on the roof or foundation?
		Leaks – check inside and outside for evidence of leaks
		Dampness – is there dampness anywhere in the house or basement, check for mould
		Exterior – will the house need to be painted or require repairs any time soon.

Are sellers legally required to disclose any defects on the house that could influence a decision to buy?
Yes, the seller needs to disclose to the potential buyer any existing defects that the seller is aware of, both easily identifiable defects as well as defects that are not easily visible. Deliberate non-disclosure could see the seller in a court of law.

If a house on the market has electrical problems, who is responsible for the associated costs?
Should a property be sold “voetstoots”, then all defects as they exist are for the buyer’s account. If it is not a “voetstoots” sale, the seller is required to produce an electrical certificate, which needs to accompany the offer to purchase. Then if there are any electrical repairs required, it would be for the seller’s account.

		Ensure that the full property description is included
		Check that the purchase price and deposit information (if applicable) is what was agreed to.
		Check for date of occupation and occupational rent charges.
		Check whether any special conditions have been included
		Ensure that a list of movable items, fixtures and fittings clearly indicates what stays and what goes to avoid fights at a later stage.

		A freehold property is registered in the owner’s name. The property is managed independently and the owner is responsible for the maintenance and improvements on the property.
		A sectional-title unit is usually a flat or a town house, which shares common property with other unit owners like a garden, swimming pool, braai area and/or security. In return for the shared property, a monthly levy is charged. A body corporate administers and maintains the property, while each individual owner is responsible for the upkeep of their unit.