A short guide for Buying a house in Botswana (2)

Making an offer for a property
If you have decided which property you would like to buy , put a formal, written Offer to purchase for the property. Your Estate Agent will usually prpeare this offer. This offer would contain the following:

• your name and details
• the property you want to make an offer
• the purchase price you offer to pay
• a declaration from you to pay a 10% deposit of the offered purchase price
• a validity period

Usually it will also state the Estate Agents fee, but this is normally charged to the property owner and of less concern to you.

The price you offer is up to you. You need to take the following into account:

• the asking price
• the price you think yourself you want to pay
• advice from your Estate Agent
• if possible, the advised sale price in a valuation report.

A valuation report is not always available. The bank will, when considering your mortgage application, often look at the figures in a valuation report and usually not exceed these figures with the mortgage.

Upon preparing the offer, the Estate Agent will have you to sign the offer and will forward it to the property owner for his decision and signature. The Estate Agent will give you the answer as soon as he hears from the owner.
Remember this offer is a legal document and you will adhere to the conditions as stated.

Your offer is accepted.
When your offer is accepted you first need to secure the financing of the property. If you will have a mortgage for the property, you need to apply with a bank of your choice for the mortgage.
The bank requires an up-to-date valuation report from a registered valuer. If no such report is available, you need to have made. Your Estate Agent will assist you on that. Note, the costs for the valuation report are yours.
You also need to arrange for a life cover insurance for the running period of the mortgage.

After the bank has approved your mortgage application, you are required to pay the 10% deposit as agreed in the offer. Alternatively, the bank will be able to furnish you with a "Letter of guarantee", which can also be accepted.

The transfer
Once the financing is done, the legal procedures for the transfer of owner ship can start. These procedures are done by an attorney, usually chosen by the seller. Your Estate Agent will collect all the necessary documentation from you and the seller and will compile a complete set to present to the attorney.
The attorney will do the complete procedures for you, both the legal transfer of the property at the deeds office as well as the finance transfer from the bank to the seller.
The service fees of the attorney are usually around 2% of the purchase price and are for your account. During these procedures, you will also be required to pay the transfer duty, which is 5% of the purchase price. Banks usually do not include these costs in their fincancing.

You are the new owner of the house
Once the legal procedures are through, you will get the keys to your new home. If you have a mortgage, the Title Deed of the property will reside with the bank untill the mortgage is paid off. You will be able to have a copy of the title deed for your own use. Usually the bank will insure the property against fire and destruction. Finally make sure that your registration with the local authority is up to date and pay the yearly local rates in time.