Financial Responsibilities of Ownership Flashcards
What do ownership costs depend on?
- different factors such as deposits and hidden costs
What is the financial responsibility of the seller?
- must obtain and pay for an electrical compliance certificate
- to confirm that electrical system complies with safety regulations
Where should the transfer of property from the seller to the buyer’s name be registered?
- transfer should be registered at the Registrar of Deeds
What will the buyer receive to prove that they are the legal owner of the house?
- the title deed
Why was the Financial Intelligence Centre Act (FICA) implemented?
- to combat money laundering
What is money laundering?
- the abuse of financial systems where people want to hide the proceeds of crimes
What does FICA state?
- all buyers and homeowners are required to supply the following to their bank:
- a copy of their ID
- their income tax number
- proof of residence
What must the owner pay to the local municipality?
- rates and taxes
What are the financial responsibilities of a buyer in terms of circumstances?
- dealing with unforeseen circumstances
- e.g. a bust geyser
What are the financial responsibilities of a buyer in terms of security?
- ensuring security and safety of the property
What are the financial responsibilities of a buyer in terms of cleanliness?
- cleaning gutters regularly
- taking care of garden and swimming pool
What are the financial responsibilities of a buyer in terms of maintenance?
- repainting weathered surfaces
- caring for floor coverings
- checking roof, geyser, plumbing, electrical wiring
- repairing cracks in walls and windows
What are the financial responsibilities of a buyer in terms of renovating?
- paying for renovating parts of the property
What is proof of residence?
- any documents that can prove that a person lives where they have indicated
- e.g. an electricity bill from the local municipality
