Your responsibilities as a new homeowner

Your responsibilities as a new homeowner

Your Responsibilities as a New Homeowner

1. Payment of your Bond/Home Loan (debit order)
2. Open a new account at the municipality to pay your Rates and Taxes (imposed by government) operations@mafadi.co.za for rates consultant
3. Pay your water and electricity bill/utilities
4. Pay your Levies (if applicable - Sectional Title or HOA)
5. Insure your property and belongings (if applicable)

1. Payment of your Bond/Home Loan (debit order)

One of the biggest responsibilities that you have, when you purchase your home, is making your monthly bond/home loan payments. It is important that you make these payments on time every month.

2. Open a new account at the municipality to pay your Rates and Taxes (imposed by government)

Now that you are a property owner, you need to start paying property taxes. You need to register for rates and taxes over and above your utilities. You will need to pay the municipality a deposit which is based on the value of your home allocated by the municipality. These fees cover garbage disposal and sewerage usage.

What documentation is required by the municipality to close an account?

You, as the Seller will need to present the following documentation to the Municipality:

• A letter from your Conveyancer or Transferring Attorney confirming that the transfer has indeed taken place.
• A utility bill reflecting your municipal account number.
• Your ID document.

What documentation is required to open a municipal account?

For the Seller to close their account, you will first need to open a new account as the Purchaser of the property. To do this requires you to visit the municipal offices, together with the following documentation in hand.

• A letter from your Conveyancer or Transferring Attorney confirming that the property has been transferred into your name.
• Your ID document.

Your new account number will be issued to you, and it is at this stage that you should notify the Seller that you have successfully opened a municipal account. Your action will enable the Seller to close their account.

3. Pay your water and electricity bill/utilities

Your bill would depend on how much water and electricity you use. If you have a large family who takes long showers or, if you do laundry in the home often, your bill would be higher than the average.

4. Pay your Levies (if applicable - Sectional Title or HOA)

Quite simply, levies are part of the price of ownership in a sectional title or homeowners association. If you own a freehold home, you are obliged to pay the municipal property rates in addition to the monthly charges for services such as water and electricity supply and refuse removal.

The same applies if you own a sectional title apartment or a home in a community.

The legal implications of not paying your levies are:

• Incurring interest
• Incurring legal costs
• Incurring penalties
• You could even lose your property

Where does my levy go?

When you pay your levy to the managing agent/body corporate or HOA management, you ensure that your estate has the following:

• Security
• Insurance of common areas
• Gardening and cleaning of pavements
• Maintenance of the playgrounds for your children
• Accounting and management services for the community

In order to live in a safe, well-maintained environment, we need everyone to pay their levies!

5. Insure your property and belongings (if applicable)

Unlike homeowners and life insurance, the bank won’t make you take out home content insurance, but it’s certainly recommended that you do. This insurance covers the actual contents of your house in the event of a loss. Often, if you take out multiple plans (cars insurance, homeowners’ insurance, etc.) with the same insurer you will be given a more favorable premium. Becoming a homeowner is one of the most fulfilling and exciting times of your life. These are a few new responsibilities that you need to start taking on yourself to make sure home ownership is a positive experience!

FAQ

What is a Body Corporate?

The Body Corporate is the collective name given to all the owners of units in a scheme. Units refer to flats in a development. The body corporate comes into existence as soon as the developer of the scheme transfers a unit to a new owner. This means that all registered owners of units in a scheme are members of the Body Corporate. Members are responsible for the management of the body corporate by electing trustees to make vital decisions.

What is my responsibility and what is the Body Corporate responsible for?

Body Corporate is responsible for the maintenance of all structural and common property (Roof, Garden, Pool, Gates, Security) as well as any billing queries (Levies, Water, Electricity), etc. You as the owner will be responsible for anything that occurs inside the property walls as well as paying all your bills.

What if your property registered in the middle of the month?

You as the owner are liable to pay your bond, levy, and rates. If your property registers in the middle of the month for example the 15th you will be liable to pay for the remaining days “pro-rata” of the month (You will only be billed for the days that you own the property). If there is a tenant in the unit and the rental is paid on the 1st of each month if the property registers on the 15th you will receive the rental amount of the property for the full month.