Home-Ownership Programme€¦ · FNB Housing Finance | Home Ownership Programme | Page 2 1 1.1 1.2...

FNB Housing Finance | Home Ownership Programme |

First National Bank - a division of First Rand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20)

Home-Ownership ProgrammeLearn more about FNB HOP


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Introduction & Background

Introduction

Background

Banks

Legal rights

What legal rights do you have?

Types of Properties

Freehold

Sectional title

Building Loan

Top Structure

Products

FNB Housing Finance Products

4.1.1

4.1.2

4.1.3

4.1.4

4.1.5

4.1.6

4.1.7

4.1.8

FNB Products, Features & Channels

4.2.1

4.2.2

4.2.3

4.2.4

4.2.5

4.2.6

4.2.7

4.2.8

4.2.9

4.2.10

4.2.11

4.2.12

4.2.13

4.2.14

How do I apply for a bond?

Offer to Purchase

Home Loan Application

The Home Loan Quotation

5.3.1

5.3.2

5.3.3

5.3.4

5.3.5

5.3.6

5.3.7

5.3.8

Variable Interest Rate

Fixed Interest Rate

Salary Stop Order offer

Re-advance

Further loan

Future Choice

Flexi Bond

Own-bonded property

Home-Owners’ Cover

Cellphone Banking

Pre-paid Electricity

Smart Account

Smart Cheque Account

Funeral Cover

Connect

dotMobi

e-Wallet

Smart Spend Loan

Easy Loan

Student Loan

FNB Life

Wills and Testaments

Principal debt

Initiation fee

Loan Term

Monthly Service Fee

Total interest charges

Interest Rate

Insurance premiums

Conditions of Bond

Contents


Contents6

6.1

6.2

6.3

6.4

6.5

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8

8.1

8.2

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9.1

9.2

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12.1

12.2

12.3

12.4

12.5

12.6

12.7

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Instruction to Bond Registration

Instruction

Attorney and their Roles

Power of Attorney

Identification information

The Mortgage Loan Agreement

Costs

Financial Obligations

What will all your financial

obligations be?

Month Payments

Repayment options

Salary deduction (Stop order)

Debit order

Insurance

Life insurance


Budgeting

Cancellation Or Settlementof Bond

Pre and Legal

Financial difficulties

Debt Counseling

Repossession

Sale in Execution

Foreclosure

Shortfall on Property Sold, or Sold

at Auction

Retrenchment Claims

Growing your Investment

Important Contact Details

Who can help me?

Explanations of terms

What does it mean?


introduction01

& background

FNB Housing Finance | Home Ownership Programme | SECTION ONE


1.1 Introduction

Welcome to the FNB Housing Finance Home-Ownership Programme!

This programme gives you useful information about home-ownership. We invite you to share in our knowledge, as part of our constant effort to empower you with information, on how to honour your financial obligations and increase the value of your property.

A home is one of the most valuable asset you can ever own.

1.2 Background

Why get a home loan?

We all dream of owning a house. Unfortunately, most of us cannot afford to buy a house for cash.

A home loan allows a customer to borrow money from a financial institution (like a bank) to buy or build that dream home. A home loan is also referred to as a bond.

In financial terms, a home is referred to as a residential property.

What is a home loan?

The actual money borrowed is called the home loan. FNB and the customer enter into a loan agreement in terms of which FNB lends a certain amount of money to the customer and the customer agrees to repay the amount, on the terms and conditions specified in the loan agreement.

One of the conditions in the loan agreement is that the customer should register a bond over the property at the Deeds Office.

Registering a bond over the property, allows the bank to sell the customer’s property in the event that the customer does not honour his commitment, in terms of the signed agreement.

It also gives the bank preferential right over the proceeds of the property, in the event of insolvency, or another creditor attaching the customer’s property. The owner cannot sell the property without the bank’s consent. For these reasons the bond is referred to as the bank’s security.

Registering a title deed over the property, is proof of ownership for the customer.

introduction & background


introduction & background

What is a bond?

Bonds get registered in the Deeds Office, after the registration process, FNB Housing Finance retains the original title deed and the mortgage bond document, as well as all other relevant security documents, until such time that the bond gets cancelled at the Deeds Office.

Secures the existing debt at the date of registration, as well as future debts that the customer may owe to FNB, up to the amount the bond is registered for.

1.3 Banks

What role do banks fulfill?

Banks provide financial services and products to customers, such as transactional accounts, saving products and loans.

Banks must ensure that people who deposit their savings or salaries with them, will get a return on their investment.

Banks use other customers’ savings and investments to lend you money, when you apply for a home loan, personal loan or any other loan.

Banks earn income from the interest they charge on their loans and the fees they charge for financial services.

This income is used to cover their running costs and to repay investors and depositors.If a loan is not paid back, the costs have to be taken off the bank’s profit.

If these costs are more than the profit the bank makes, it cannot repay its depositors and investors.

Banks provide financial services and products to customers, such as transactional accounts, saving products and loans.


legal rights02

know your rights

FNB Housing Finance | Home Ownership Programme | SECTION TWO


legal rights

2.1 What legal rights do you have?

There are specific acts that protect your rights. These acts ensure that you arenot exploited when it comes to yourfinancial obligation.

Please ensure that you understand everything before signing any document!

As a credit provider, the bank has to do the following:

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The bank must also give you information about the following:

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Assess your ability to repay the debt and evaluate your existing financial means.

Provide you with a quotation for the loan/product/service before you sign the agreement, so that you can have an opportunity to understand the content and ask questions relating to the agreement’s terms and conditions,which explains all the costs, rights and obligations.

Explain all the costs, rights and obligations of the contract to you.

Interest rates – The bank may not charge more than the maximum interest rate as prescribed by the National Credit Act.

Over-indebtedness – When the bank grants a loan to a customer, the bank must make sure that the loan is in accordance to the customer’s affordability and can be repaid over the prescribed term.

Recklessness – If you already have a credit facility, the bank may not increase your credit limit without ensuring that you can repay the increased credit.

The bank may also not give you a loan, if you cannot afford the repayments, (the information you supply to be bank may not be older than 3 months and it is imperative that you advise the Bank on the correct information).

Credit worthiness – This is a summary of all the factors that show the bank you are able to make the monthly payments, as required.

These acts ensure that you arenot exploited when it comes to your financial obligation.


Name of Act Importance of the Act

FinancialIntelligence Act(FICA)

The Act was established to combat money laundering activities; to impose certain duties on institutions and other persons who might be used for money laundering purposes; to amend the Prevention of Organised Crime Act, 1998, and the Promotion of Access to Information Act, 2000; and to provide for matters connected therewith.

Prevention and Combatingof CorruptActivities Act

This Act highlights the necessity of strengthening measures to prevent and report corruption and corrupt activities and to place a duty on certain persons holding a position of authority to report corrupt activities. The Act tends to focus on the sound principles of good corporate governance.

Consumer Protection Act(CPA)

This Act aims to restrict unwanted direct marketing and also emphasises consumers’ right to a cooling off period after direct marketing. This Act is a consolidation of all existing consumer protection laws, e.g. NCA, Consumer Affairs Act and Trade Practices Act.

National CreditAct (NCA)

The Act seeks to promote a fair and non-discriminatory marketplace for access to consumer credit. The Act requires credit providers to do an assessment before entering into any credit agreement. The consumer must disclose information fully and truthfully at the time the agreement is made.

Financial Advisory and IntermediaryServices Act (FAIS)

The Act seeks to regulate the rendering of certain financial advisory and intermediary services to customers.

Competition Act The Act provides for the establishment of a Competition Commission that is responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and mergers.

POPI Act The Protection of Personal Information Act seeks to regulate the processing of personal information and ensures reasonable measures are put into place to protect that information from abuse and unauthorized access.

What legislation is there that can protect you?

legal rights

There are specific acts that protect your rights. These acts ensure that you are not exploited when it comes to your financial obligation.


types of03

properties

FNB Housing Finance | Home Ownership Programme | SECTION THREE


3.1 Freehold

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3.2 Sectional title

With a Sectional Title property, you are buying into a type of “Communal Ownership”, where you will only have exclusive ownership rights to your apartment or townhouse in the complex.

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You will have shared use of certain other parts of the property. These are called “Common Property Areas”, and is available for use by all owners of sections in the complex, and this may include the:

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Individual ownership The property will belong to you and will be registered in your name.

No common ownership This means that the garden, house, border walls, etc. are all form part of your property and therefore it is your responsibility to maintain it.

You will have to pay municipal rates and taxesThis money is paid to the municipality monthly for services such as refuse removal, road maintenance, sewerage and water connections.

The apartment or townhouse in a complex is referred to as a “Section” in your Offer to Purchase. Your exclusive ownership rights to your section in the complex will be recorded at the Deeds Office in a Sectional Title Register.

- Garden- Swimming pool- Outer walls- Roadways- The roof

There may, in some Sectional Title Schemes, also be Exclusive Use Areas. This is a part of the property which you do not have sole ownership rights to, but over which you alone have the exclusive use, and may include:- A portion of the garden- A patio- A parking bay

Exclusive Use Areas should ideally be documented in the Offer to Purchase or in Rules registered at the Deeds Office.

Exclusive Use Rights are legally created and granted to owners either as real rights at development stage, which are registered at the local Deeds Office or as personal rights by making a Scheme Rule and registering that Rule at the Deeds Office.

When an Exclusive Use Area is granted to an owner, the intended use of that area must be formally specified.

types of properties


So that’s three different types of areas in a Sectional Title Scheme:

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Body Corporate

Now you might ask; “Who manages the Sectional Title Development”? Every Sectional Title Scheme is managed by a Body Corporate. This Body Corporate is made up of every owner in the complex, who each have a say in how the Scheme is managed.

But you will no doubt agree, it will be impractical and confusing for all the owners to act as “managers” of the Sectional Title Scheme.

This is why members of a Body Corporate exercise their right to vote for, and elect a small group of owners as Trustees of the Body Corporate, and who will have the mandate to act on behalf of the owners.

Please note, it is extremely important that owners elect responsible individuals who will look after the interests of all residents and

who have the time needed to actas Trustees.

The Trustees main duties are to:

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In most cases even the most dedicated Trustees do not have time to meet all their responsibilities. It is for this reason that the Trustees appoint a Managing Agent to help out with the management and running of the Sectional Title Scheme.

The Managing Agent is normally an independent company that specializes in assisting the Trustees of a Body Corporate to run the complex.

Normally the Developer or existing Trustees would have already appointed a Managing Agent prior to you purchasing your home, but Trustees may decide to replace the Managing Agent should they feel the need to do so after having the Body Corporate vote on the matter.

Your Section, over which you have ownership,

The Common Property, which you share with other owners, residents or tenants,

Exclusive Use Areas, which you alone use but do not own.

Help run the day-to-day affairs of the Scheme;

Manage the Body Corporate finances and expenses;

Enforce the Sectional Title Scheme Rules; which may include charging and collecting on fines against owners who do not adhere to the management rules; and

Resolving issues relating to the complex.

types of properties


Note – the bank requires a fully corporate financial report before approving bond finance for a Sectional Title Unit, this is to ensure that the complex is in a positive financial position.

Participation Quota

In order to properly understand how levy fees are calculated and how voting works at Body Corporate meetings, you will need to understand what a Participation Quota is.

If we total up the square meter size of each section in our example and then divide each section’s size by that total, we get to each owner’s Participation Quota for his or her section.

Owners with larger units, will therefore, have a larger Participation Quota than owners of smaller units.

This Participation Quota has two major implications for you

If Owner 1 from House One, who has a larger House, votes at a Body Corporate meeting called by the Trustees, his vote will be worth twice, than that of Owner 3 from House Three, who has a small House, as his house is twice as big as Owner 3 house.

On the other hand, consider that the Participation Quota also determines how much of the Monthly Levy Owner 1, Owner 3 and other owners will have to pay. Owner 1 will pay a levy that is double that of Owner 3.

With regards to voting the owners can vote to change the management rules and agree to one equal vote for every unit that an owner holds.

So in summary, owners of larger units in a Sectional Title Scheme normally have a larger vote, but also a larger levy to pay.

Meetings

You might have heard the term “if you do not buy a ticket, do not expect to win the lottery!”

As an owner in a Sectional Title Scheme, it is important to attend meetings called by the Trustees to ensure your opinion is noted when votes are taken on important matters. It is especially important to attend the Annual General Meeting where the decisions made may impact your budget and lifestyle.

Note that Trustees must ensure invitations for meetings are given to all owners at least 14 days before the meeting is held. These invitations will in many cases include an agenda and information relating to the topics that will be discussed.

types of properties


Levies and Annual General Meeting

Now what are Levies and how are they calculated?

Levies may simply be described as a fee collected from all owners to cover expenses incurred in maintaining and managing the Sectional Title Scheme.

The Levy amount is generally agreed by the Body Corporate at the Annual General Meeting once the Trustees have presented the Budget.

Levies are used to pay for services and expenses linked to the Common Property Areas only, such as:

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The monthly Levies also cover:

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While the levy includes Rates and Taxes for the Common Property Area, you as the owner will still have to pay rates and taxes for your section of the building directly to the

Municipality, and also pay the municipality for water and electricity used by you and your family, if it is not included in your levy.

So, it is very important that you make sure you know what is included in your levies.

How are the Levies calculated?

The process starts with compiling the Sectional Title Scheme’s Annual Budget. At the inception of a Sectional Title Scheme and again before every Annual General Meeting, the Trustees, together with the Managing Agents, have to prepare a budget for the following year that covers all Common Property Expenses.

They might use the prior year’s expenditure as a guide and then add a percentage for inflation. The budget is then approved by owners at the Annual General Meeting. The Body Corporate of the scheme is also obliged by law to charge an owner any costs the Body Corporate might incur over an Exclusive Use Area.

These are generally maintenance, repair and services costs. Remember levies will most likely increase annually.

If the levy is not paid, the body corporate also has the right to institute legal proceedings against the defaulting owner for the recovery of the arrear rates, which may include the property being sold in execution by the Body Corporate.

Rates and taxes ;Water and electricity;Insurance premiums;Repairs and maintenance; andWages and salaries of the gardeners, cleaners or other staff working on the Common Property Area.

Administration fees of the Managing Agent; andWhere applicable, security for the Sectional Title Scheme.

types of properties


Maintenance

With regards to maintenance in a Sectional Title Scheme, it useful to understand who is responsible for the maintenance of the three different types of property in Sectional Title Schemes; namely Individual Sections, Common Property Areas and Exclusive Use areas.

The Sections in the scheme are privately owned, and any repairs inside them are the owner’s responsibility. Each home-owner is thus personally responsible for the interior maintenance and upkeep of the unit owned by them.

The Common Property maintenance costs are covered by levies collected. The exterior walls and roof of any Section are also considered common property.The responsibility for maintenance of Exclusive Use Areas will rest with the Body Corporate in some Sectional Title Schemes. With others, the Body Corporate may ask the owner to pay an Exclusive Use Levy.

If at any stage, you are unsure who has to maintain or insure what, ask a Trustee or contact the Managing Agents.

Rules

While Sectional Title Schemes offer many advantages, they need to be well managed and residents need to co-operate in a neighborly manner.

This is where Management and Conduct Rules step in to provide guidelines. As their names imply, the Management Rules control the running or management of the Scheme, while the Conduct Rules lay down guidelines for the conduct of owners, and their guests or tenants.

Management Rules typically covers aspects relating to:

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Conduct Rules, amongst others, covers issues that relate to:

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Registration rules at the Deeds Office

It is your responsibility to read, understand and acknowledge the rules of the Body Corporate. It is not the banks responsibility to disclose this. Tenants too must read and abide by these rules.

Trustees;Meetings;General Administration of the Scheme;Budgets & Levies;Annual Financial Statements;Alterations or Improvements to the Common Property; andThe appointment of a Managing Agent

Pets;Refuse Disposal;Vehicles and Parking;Littering; andGeneral use of the Common Property.

types of properties


Insurance

When it comes to insurance, the Trustees will use Managing Agents to ensure that comprehensive insurance is in place for all the buildings, walls, equipment and other items that are on the Common Property of the Sectional Title Scheme.

Sectional title insurance is compulsory when financing with the bank and this insurance must be ceded to the bank, prior registration of the property.

Please check with the Management Agent, if it includes your geyser and if so, will you have to pay excess when repairs are made to the geyser.

Common Area Insurance does not cover the contents of your unit. Please make sure that you insure your home contents, by taking out home contents insurance separately!

Structure Changes

Can you make structural changes or alterations to your unit?

It is possible but it isn’t simple! You will need to have, amongst other things, the approval of the relevant authority at a municipal level, approval of the Body Corporate, a surveyor to draft a Sectional title plan of extension and the approval of this by the Surveyor General, as well as obtaining consent of bondholders.

If owners are allowed to make any type of alteration to their units, one might end up with a Sectional Title Scheme that has everything looking odd. While convenient for some owners, this may lower the value of the properties in the Sectional Title Scheme and / or make it more difficult to sell.

3.3 Building Loan

What is a Building Loan?

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The purpose of a building loan is to provide mortgage finance to prospective borrowers for the purchase of vacant land and subsequent construction cost, to erect a residential dwelling.

This could be a new residential development area on freehold land in a proclaimed residential area or to make structural improvements and additions to an existing dwelling.

FNB Housing Finance only finance vacant land as part of a building package.

You can buy off plan – in other words, you will select the house to be built on the vacant land, from a house plan drafted by an architect.

The land must be transferred into your name first, thereafter your NHBRC approved builder can start building the house.

types of properties


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Building loan documents required

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Things to remember when applying for a building loan:

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Once the land has been transferred into your name, at the Deeds Office, you are the registered owner and responsible for the debt.

The land cannot be transferred into your name before the municipal infrastructure and services are installed, e.g. road services and sewerage.

As a customer, you are liable to pay Rate and Taxes.

Contract between yourself and the contractor/builder/developer, who must be NHBRC registered.

List of building specifications.

Approved municipality building plans.

Builders NHBRC certificate.

Property NHBRC enrolment certificate.

Building quotation.

Who is responsible for insurances?- While the building is under construction, the builder is responsible for the property insurance premiums.

- When the building has been completed and you are in possession of the keys, you are responsible for the payment of the property insurance premiums.

You should inspect the work before signing the progress payments and / or Happy Letter.

Who is responsible for defects? Please refer to the condition of your building contract, which is the contract signed between yourself and the builder. (When you take possession of the keys to your new house, make sure that you have listed all the snags/ problems/defects on your Happy Letter/Letter of Satisfaction.

Do not leave any snag out, even if the developer promises to fix it).

Any issues relating to the quality of the work or snags, must therefore be taken up directly with the contractor/builder/developer, and not the bank.

Life insurance is active the day the bond is registered, at the Deeds Office, in your name.

When the registration of your bond takes place, you become the legal owner of the land, even though your home may still be in the process of being built.

types of properties


An amount may be kept in retention, to ensure that the contractor/builder/developer fixes all the snags that have been identified.

You must make sure you understand how interest rates work.

You are responsible from date of registration of the property to manage and pay the interim interest, as per the mortgage loan agreement.

This must form part of a building package.

You can buy off plan – in other words, you will select the house to be built on the vacant land from a house plan drafted by an architect.

Normal building loan conditions.

The property must be 100% completed prior, to registration.

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3.4 Top Structure

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types of properties

When the building has been completed and you are in possession of the keys, you are responsible for the payment of the property insurance premiums.


finance,04

products, and more

FNB Housing Finance | Home Ownership Programme | SECTION FOUR


4.1 FNB HousingFinance Products

4.1.1 Variable Interest Rate

This is an interest rate that fluctuates when the prime rate changes. If the interest rate changes, your monthly bond repayment will change simultaneously, please refer to the mortgage loan agreement.

4.1.2 Fixed Interest Rate

This is an agreed-upon interest rate that does not change over a pre-determined period of time (please refer to the mortgage loan agreement). After this term, the rate will change back to the variable interest rate, unless you renew the fixed rate option, at the new rate offered at that time.

Make sure that you monitor the variable interest rate fluctuations (changes) to prepare yourself financially, if the variable rate at the end of the fixed rate contract period is higher than the fixed rate.

4.1.3 Salary Stop Order offer

This is an interest rate benefit when implementing a salary stop order. On receipt of the first payment, the rate benefit willbe implemented.

You will need to provide documentary proof from your employer that the salary stop order deduction is in place.

The benefit will lapse with immediate effect and without prior notice, if payments by salary stop order are cancelled.

4.1.4 Re-advance

A Re-advance is calculated at the difference between the bond amount owing and the bond amount registered. You may apply to have access to this amount provided, if you meet the bank’s minimum lending criteria.

To get a re-advance, you must complete the Smart Bond® application, and submit it with the following documents:

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4.1.5 Further loan

A property can have multiple bonds registered against it. A Further Bond is an additional bond that is registered, in the Deeds Office, when you require additional funds.

A copy of your Identity Document (if applying jointly, copies of both ID’s are required).

A copy of your latest proof of income (if applying jointly, copies of both are required).

The latest bank statements (if you are not banking with FNB).

Your latest municipal account, reflecting rates and taxes.

products


These funds will be made available once all the required documents, as well as the terms and conditions have been met (you will be required to undergo a normal credit assessment before obtaining the funds) and the bond is registered in the Deeds Office.

To do so, you will need the following documents:

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In addition you might be required to submit the following documents:

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4.1.6 Future Choice

This allows you to register a higher bond amount (more than the approved amount), that could be used in future. The additional amount is based on full credit assessment and approval. Monthly repayments are based on the funds paid out to you only and not on the total registered bond amount.

How this will benefit me:

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To access this facility you will need to follow the advance application process.

4.1.7 Flexi Bond

The Flexi Bond gives you access to available funds on your home loan that is paid into your bond account over and above the monthly bond repayment.

You can access the extra money anytime, by completing a Refund Form and sending it back to FNB Housing Finance.

A copy of your Identity Document (if applying jointly, copies of both ID’s are required).

A copy of your latest proof of income (if applying jointly, copies of both are required).

The latest bank statements (if you are not banking with FNB).

Your latest municipal account, reflecting rates and taxes.

Approved plans (if you wish to make structural improvements).

Quotes material or labour.(I am not sure if this is correct as we do not offer Owner builder)

The builder’s NHBRC enrolment certificate.

It is easy to apply for access to the additional funds in future.

You will save on legal cost (you will not be required to register a further bond).

It is quick, as you do not have to wait for any registration process.

products


While the additional funds that are deposited into the home loan will save you money on the interest and reduce the home loan term, you have access to that money, should you need it.

Conditions of a Flexi Bond:

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4.1.8 Own-bonded property

This product is to assist customers who already have ownership of the property with no outstanding home loan and require finance, which could be used for any purpose e.g. home improvement, holiday etc.

This application follows the normal application process.

4.2 FNB Products, Features & Channels

4.2.1 Home-Owners’ Cover

Home-owners’ cover insures your property and any structural improvements to the property for the replacement value of the property. A quote is provided to you when you take out a home loan through FNB to ensure that your home is covered.

4.2.2 Cellphone Banking

With cellphone banking you can bank wherever you are, whenever you want. Anyone on any network with any cellphone can use it.

There are no complicated downloads or special SIM requirements. Registration is FREE.

4.2.3 Pre-paid Electricity

With this feature, you can buy electricityfor your home at anytime and anywhere, using your cellphone. Money is taken directly from your transactional account (cashless transaction).

4.2.4 Smart Account

A transactional and savings account for everyday banking. This allows you to earn interest on your savings, while still having instant access to your funds.

You may only apply for this product once the bond is registered in your name.

You must have a FNB bank account where the salary gets paid into.

Bond deduction to be from salary or the FNB bank account.

You must have variable rate product (cannot change from fixed to variable before expiry date of fixed term).

Any additional funds paid in prior to Flexi bond approval is not available to be withdrawn as “Flexi bond”. If you wish to access these funds you are required to apply for an advance product.

products


4.2.5 Smart Cheque Account

Get a Smart cheque account to suit your needs, and fit your lifestyle. With the unique benefits and options of this basic transactional account from FNB, you can bank and save on a day-to-day basis.

4.2.6 Funeral Cover

You can choose your cover to best suit your needs and your pocket. A Memorial Benefit worth R5 000 is included for the plan holder. You qualify for double cover if your (or your spouse’s) death is caused by an accident.

4.2.7 Connect

If you’re looking for ways to save on your phone and internet bills, then Connect from FNB is your solution. With the Connect Talk and Surf products, there are no contracts, so you decide how much you want to spend.

4.2.8 dotMobi

Use your cellphone to ask that someone contact you to find out more about specific products and services. Simply type www.fnb.mobi on your web-enabled cellphone and see how FNB can help you.

4.2.9 e-Wallet

Through this very convenient service you can send money from your FNB account,

via your cellphone to any person anywhere in South Africa and other approved African countries. The maximum amount you can send is R1 500.

The person to whom you send the money does not need to have an FNB account, they only need to have a cellphone and access to an FNB ATM.

4.2.10 Smart Spend Loan

This is a small personal loan which can be used for anything you choose, e.g. to consolidate your debt, buy furniture or do small home maintenance.

4.2.11 Easy Loan

This is a quick and easy solution to access cash or gets credit. An Easy Loan is approved and paid within ten minutes.

4.2.12 Student Loan

Used for higher and further education. A loan from R4000 can be used to pay registration fees and books for students.

4.2.13 FNB Life

FNB Life offers you a variety of life insurance products, including death and disability cover for your home loan. This means that if you pass away or you are disabled, your bond will be settled in full.

products


4.2.14 Wills and Testaments

FNB’s Trust Services will guide you in making the right decision when you draft your will. Your will is a document that is recognized by law as the expression of your wishes.

Why it is important

By making and leaving a last Will and Testament, you are in a position to decide and instruct how your assets are to be distributed and dealt with after your death.

Thus, you can ensure that only the people you choose will benefit from your estate, and that your estate is distributed the way you want it to be.

Should you die without leaving a valid Will, your assets will be divided and distributed according to the Law of Intestate Succession, and subjected to the general rules of inheritance, which will apply across the board to everyone.

Signing the Will

The signing of the will is the most important step in validating a Will. The following guidelines must be followed:

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You need two people to witness the signing of your Will. These persons must both be over the age of 14 years, and mentally competent to understand what they are doing.

Preferably, adults must witness the signing of the Will. Both witnesses must be present when you sign the Will.

You and the two witnesses need to initial all the pages of the Will, as well as any amendments made on the Will. Then, you and the two witness need to sign in full on the last page, and in a legibly write out their full names, ID numbers and date.

If you can only sign your name by making a mark (X), you should contact FNB for the right way to sign your Will.

Any person who is to receive any benefits under the Will, as well as your Executor, Trustee and Guardian, including such a person’s spouse, should not sign as a witness, as they would be disqualified to benefit.

products

Any deletion, addition, alteration or interlineations must be validated with signatures by you and two witnesses.


how to apply05

for a bond

FNB Housing Finance | Home Ownership Programme | SECTION FIVE


5.1 Offer to Purchase

Checklist

Make sure that you do the following:

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The offer to purchase should have thesekey elements:

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Make sure you look carefully at the property. Are there any problems or defects that you can see?

Are there any people living on the property and do they know that the property is being sold, and will they move out of the property? Ensure to get clarification from the Seller or estate agent.

Have you made copies of all the important documents and stored them in a safe place?

Do you understand the different payment options i.e. whether a deposit needs to be paid, how much, by when and when other payments might be due?

Do you understand the meaning of the words and abbreviations used in the OTP?

Do you know the important dates, such as the handover, the date you will occupy the property, and the registration date?

Physical description of where the property is situated.

Special conditions mentioned (e.g. declaration of any problems with the property by the Seller).

Commission payable (who pays what?).

Type of commission to estate agent, mortgage originator, etc.

The purchase price.

Date you will take occupation.

Occupational rent - before or after registration date, as stipulated inthe contract.

Current tenants living in the home (when will they vacate the property?).

Vacant occupation (do the current tenants know the home is being sold?).

Cost to register the property, from the Seller’s name to yours.

how do i apply for a bond?


5.2 Home Loan Application

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5.3 The Home Loan Quotation

You will receive the final loan approval.

Your home loan quotation will have a number of key elements:

5.3.1 Principal debt

This is the loan amount that you are borrowing from the bank, excluding interest, service fees and initiation fees.

5.3.2 Initiation fee

This is a once-off fee charged by the bank for administration costs, for opening of a home loan account, and for processing the home loan application.

5.3.3 Loan Term

This is the term (period) over which you undertake to repay your home loan. The maximum loan term offered by FNB Housing Finance is 20 years (240 months).

If the loan term is shorter than 20 years, the monthly repayment amount will increase. In short, the loan term affects your monthly repayment amount and interest amount charged to your bond account.

5.3.4 Monthly Service Fee

This is the monthly fee charged by the bank for maintaining and administering your home loan account. It is charged in accordance with the allowable fee indicated by the Legislation.

Complete a home loan application at the bank, mortgage originator or estate agent.

Please note that the loan application form needs to be completed in full and that no fields should be left blank, as all the information provided on the home loan application is required, to make an informed decision.

If ALL of the documentation is not handed in, then this will delay the whole application process.

The completed home loan application form must at all times be signed by the applicant, who by doing so, confirms that he /she has read, understood and agreed to be bound by the terms and conditions, relating to the home loan application.

The home loan application form and all the relevant supporting documents are then submitted to the bank, for approval.



5.3.5 Total interest charges

This is the amount that you pay for borrowing money from the bank. The interest on a home loan is calculated daily on the outstanding balance of your loan, and capitalised monthly on your repayment due date. In short, the outstanding bond amount (the amount that you still owe the bank) attracts interest on a daily basis.

5.3.6 Interest Rate

This is the cost that the bank charges for lending you money. It is usually charged as a percentage of the unpaid or outstanding principal debt, or loan amount.

Understanding how interest rates works is an important part of your financial planning.

Make sure you know how it works; it will help you avoid future surprises.

An Example:

An Example:

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Let’s say you take out a home loan with a bank for R100 000 and the interest you pay is a fixed sum of 15% each year (per annum).

If you pay a little more on your bond account per month, e.g. R50, you will settle your bond sooner, as you will be paying off the outstanding bond amount quicker. You will also save on your interest payments, as interest is only calculated on the outstanding bond amount.

If at all possible pay a little extra per month on your bond account. Remember, you pay interest on the amount you still owe the bank. The more rapidly you reduce the amount you owe, the less interest you will pay and the sooner you will pay off your bond.

how do i apply for a bond?In

tere

st C

alcu

latio

ns

Bond = R300,000.00

Interest Rate = 9%

Repayment Term = 20 Years

Total Payments = R450,000.00

Monthly Repayment = R2,700.00

Specify capital and interest only

Bond = R300,000.00

Interest Rate = 9%

Repayment Term = 17 Years

Total Payments = R360,000.00

Monthly Repayment = R2,877.00


Here is a very simple example to show how this works:

Let’s say you have a bond of R300 000.00 that you are repaying over 20 years, at an interest rate of 10%.

If you pay R50 more on your bond repayment each month, you will pay R23 352.00 less than what you would have paid, if you did not pay R50 extra.

Furthermore, you will repay your bond 1 year sooner!

5.3.7 Insurance Premiums

Life Insurance

This will pay off the outstanding balance of bond, in case of death or permanent disability of the bond holder, in accordance with the policy terms and conditions.


This will pay out if there is structural damage to the house or other buildings, in accordance with the policy terms and conditions.

5.3.8 Conditions of Bond

Conditions and requirements included in a mortgage loan agreement that specify the loan amount, term, interest rate, and other enforceable conditions, agreed to by the Borrower and the Lender.


Note: These premiums can change every year annually and you will be informed of any changes, in accordance with the policy terms and conditions.


instruction06

to bond registration

FNB Housing Finance | Home Ownership Programme | SECTION SIX


Instruction

If the home loan is granted, the bank instructs the bond attorney on your behalf to register the bond, in favour of FNB.

6.1 Attorney and their Roles

The Properties Transferring Attorney

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The Bond / Registering Attorney

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The Cancellation Attorney (if applicable)

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The transferring attorney now receives the title deed and cancellation figures, and sends a copy to the bond attorney.

Transfer attorney drafts the transfer documents.

The Buyer and Seller are now contacted to sign the transfer documents.

Once this has been completed, the Buyer pays the transfer costs, and the transferring attorney pays the transfer duties, rates and taxes.

Once all the documents have been signed, all the costs have been paid and all relevant documents have been signed and received, the documents are lodged at the Deeds Office by all the attorneys concerned.

The bond attorney prepares the home loan (bond) documentation for the Buyer.

The Buyer then signs and pays all the costs involved.

The bond attorney prepares and issues the necessary guarantees, forwards them to the transferring attorney, and then gets the documents ready for lodging at the Deeds Office, where the bond will be registered.

The cancellation attorney is then requested to cancel the Seller’s bond on receipt of a guarantee for the outstanding amount owing.

The documents that you will need to sign at the attorney’s office and to meet all the conditions of the loan are:

Power of Attorney (this makes it possible to transfer the property into your name at the Deeds Office and to register a bond in favour of FNB.)

An Authority to pay document (where you give the bank authority to disburse the loan amount on your behalf).

Debit order authority and/or salary stop order authority for payment of home loan repayment.

In the case of a joint application: Power of authority – who is allowed to give instructions to the bank.

instruction to bond registration


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6.2 Power of Attorney

What is a power of attorney?

You sign a power of attorney to allow the attorney to act on your behalf to:

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What is a power of attorney for joint applications?

This document will tell the bank which of the applicants has the authority to give instructions to the bank, sign any documents, etc.

It could be the main applicant, co-applicant, or both. If it is only one of the applicants, the bank need not get permission or a signature from the other, if it is required.

Important things to remember:

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6.3 Identification information

What Identity information do the attorneys required?

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FICA documentation which comprises of Identification Document, Proof of Address, Solvency and Personal or Identity and Marital Status Affidavits, Income and Expenditure, Marketing Consent document and Confirmation by Conveyance.

Transfer the property into your name in the Deeds Office (done by the transferring attorney); and register a bond in favour of FNB (done by the conveying attorney).

The bank will only act on the instructions of the applicant that has the power of attorney.

The bank does not have to inform the other applicant of any actions taken on the account, on instruction of the applicant who has power of attorney.

Identity and Marital Status affidavit.

Names and ID numbers of both parties.

If any amendments or changes (marital status) have taken place since you applied for the bond, please let the attorney and FNB Housing Finance know as soon as possible.

Domicilium address (physical address for the serving of legal documents).

FICA requirements (utility bill).

Citizenship status (confirmed document certified by an attorney).

Solvency affidavit.

Income Tax number.



6.4 The Mortgage Loan Agreement

What is the mortgage loan agreement?

This is a CONTRACT between you and FNB. Itis also called a mortgage loan agreement. In this agreement, you and the bank arecalled “parties”.

This agreement lists all the things that you and FNB agree to, and these are called terms and conditions.

Important information:

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6.5 Costs

Transfer Costs

This is cost paid to the transferring attorney for the drafting of transfer documents, and transferring of property from the Seller to your name.

Transfer costs need to be paid before the transfer is lodged at the Deeds Office.

Transfer costs can include transfer duty, which is linked to the value of the property.

These fees may vary, depending on the price of the property.

Bond Registration Fees

This is cost paid to the bond attorney for the drafting of bond documents for your to sign, and registering the mortgage bond between yourself and the bank, in the Deeds Office.

These fees may vary, depending on the value of the registered amount.

Ensure that you understand the cost of credit part of the loan agreement which details how the loan amount has been calculated, monthly repayment amount, interest charges, bank charges, etc,

Remember that when you sign a contract, you are agreeing to the terms and conditions listed in the contract. It is very important that you read the agreement very carefully and make sure that you understand and accept all the terms and conditions.

Note the conditions that have to be met, before the bond can be registered.

Find out beforehand, if the registration and attorney costs form part of your bond amount. If not, the registration cost is payable upfront, at the attorney.


Note: Do not sign acceptance of any agreement unless you have read and understood it!


Important points to remember:

Please inform the bank immediately, if there are any changes in your:

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Should you not receive occupation prior to registration, you will have to evict the occupants at your own cost, as you are the legal owner from the date the property is registered in your name.

Employment status.

Marital status.

Income status.

Credit record status.

The condition “Vacant Occupation” refers to you obtaining occupation of the property.


Should you not receive occupation prior to registration, you will have to evict the occupants at your own cost.


financial07

obligations

FNB Housing Finance | Home Ownership Programme | SECTION SEVEN


What will all your financial obligations be?

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Financial obligations of the Seller:

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Ongoing and Servicing costs involved in owning a home:

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Legal fees, unless fully paid upfront (not always applicable, if not part of the Purchase Price).

Transfer duty or VAT due to the South African Reserve Bank (the attorney will let you know about this).

Deeds Office fees and stamp duty.

Once-off home loan initiation fee which is debited against the bond (is added to your bond account).

Monthly servicing fees – bank’s administrative charge for processing your loan and maintaining this on their system, providing you with statements and managing your queries.

Once you move into your home, you will have to pay rates and taxes/services (electricity, water, sewerage, refuse collection) to your municipality every month. If you live in a Sectional Title complex, you will also pay a levy to the Body Corporate.

Home maintenance costs.

Municipal rates and taxes must be paid up to date, and the clearance certificate must be obtained by the attorney, prior to registration of the bond.

Electrical Compliance Certificate must be obtained, by the attorney prior to registration of the bond.

In the coastal regions, an Entomologist’s Certificate is required by the attorney, prior to registration of the bond.

Any other condition stipulated in the Offer to Purchase, for example, repairs to the property that need to be completed, prior to registration of the bond

If any of the above mention has not been done, it can delay the transfer process.

Rates and taxes – This is paid to the local municipality monthly, for services such as waste collection, sewerage, etc.

Water and electricity – This is paid either monthly or prepaid to local municipality.

Monthly Levy – This is paid to the Body Corporate of a Sectional Title complex to pay for maintenance and insurance of the communal property.

financial obligations

If you live in a Sectional Title complex, you will also pay a levy to the Body Corporate.


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Home-Owners’ cover – This is paid in monthly premiums, and covers the structure of the property. This product is offered by the bank, and the premiums may form part of the repayments.

Life insurance – This ensure that the outstanding balance of the home loan is covered, in the event of your death, or if you become permanent disabled.

This product is offered by the bank, and the premiums may form part of the repayments.

Short-term insurance (optional) – This covers the content of the property, such as theft of appliances, furniture, etc.

Maintenance – You will need to set aside money for ongoing repairs and maintenance of your home, e.g. fixing your home, painting and gardening.

Finally, you need to make your monthly home loan repayments. This will include insurance, if your take up the insurance products from FNB.

The premiums will be added to your monthly bond repayments. If you take up the option for alternative insurance, it is your responsibility, to pay these monthly.

If any reason these payments are not maintained by yourself, it is your responsibility, to notify the bank immediately, due to risk implication over the property and the bank’s security.

A debit order will be implemented, until a stop order is put in place.

financial obligations

If you take up the option for alternative insurance, it is your responsibility, to pay these monthly.


month08

payments

FNB Housing Finance | Home Ownership Programme | SECTION EIGHT


Repayment Options

How do I repay my home loan?

Your bond repayment is one of the most important payments that you have to honour.

There are two ways to pay your monthly bond repayments.

8.1 Salary deduction (Stop order)

This is where you authorise the bank to instruct your employer to deduct your home loan repayment directly from your monthly salary and pay it to the bank. Until there is a salary stop order in place, a debit order authorisation will be required, to pay your monthly repayments on your bond.

If you monthly repayment is done through a salary stop order, you may entitle you to qualify for a rate benefit. Should you switch back to a debit order, you will forfeitthe benefit.

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8.2 Debit order

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This option is advisable, if your employer allows for it.

This method of payment gives you peace of mind, in that you know that your home loan repayment is paid.

If you pay your repayment through a salary deduction, you will have to notify your employer each time your bond repayment changes, e.g. insurance premium are adjusted, interest rate

changes, etc. Your employer will need to ensure that the correct amount is deducted from your salary, on time.

If your salary is not enough to cover the monthly home loan repayment, the difference will be deducted from the co-applicant’s salary or bank account.

This is where you authorise the bank to debit your bank account with your home loan repayment, on the same day, every month, same as your salary date.

A debit order will automatically be adjusted by the bank, if your monthly home loan repayment changes.

This is a safe and convenient way to pay your home loan repayment, as you don’t need to queue in the bank, or walk around with huge amounts of cash each month.

FNB will let you know when your debit order will go through every month, so you can ensure that you have enough money in your account.

If you do not have enough money, your debit order will be rejected and you will be charged by the bank for the rejection. This will affect your credit record.

If your salary is paid over a weekend or public holiday, the debit order will go off on the Friday, or day before the public holiday.

month payments


The information you need to pay your home loan repayment by debit order.

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Full names and surname.

Financial institution.

Account name – the name of the account holder.

Account number.

Branch name.

Clearing code (branch code).

Date of debit order – must be salary date.

Signed debit order/salary deduction order.

month payments

Note: Please let the bank know immediately if you change your bank account details.


insurance09

covering you

FNB Housing Finance | Home Ownership Programme | SECTION NINE


9.1 Life insurance

Life insurance is a condition of your FNB home loan. Life insurance is a cover that pays out an amount of money when the insured person dies. Life insurance covers your life. Why is this important? Let’s say that the worst happens and you pass away. Your home loan repayments will still need to be made, on top of all of your other expenses, which your family might not be able to afford. Life insurance helps your family to replace your income and cover your expenses, including the home loan.

The cover will settle the outstanding home loan balance and any amount remaining will be paid to the beneficiaries.


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Increases year-on-year.

You can choose your own insurance company, as long as the policy is acceptable to the bank.

Your life insurance must cover the total outstanding amount.

Your life insurance must include death and full comprehensive disability cover benefits.

Your life insurance must cover the term of the loan.

Before rejecting FNB’s insurance, first get a quotation from FNB and compare it to that of outside companies.

If you take FNB’s insurance, your insurance premiums will be included in your monthly home loan repayment. But if you choose to take insurance cover with an outside company, remember that the premiums will not form part of your home loan repayments. They will have to be paid by you directly to the insurance provider.

Your insurance provider must be a credible company.

Policies ceded must be accepted and approved by FNB Housing Finance first and must cover death and full comprehensive disability, for the full principal debt.

You must make sure the debit order on the insurance is paid every month.

If you decide you want to use your own insurance, the bank has the right to accept or reject the proposed insurance.

Both Life insurance and Home-Owners’ cover are conditions of the loan. Should insurances lapse, you will be in breach of the mortgage loan agreement, and therefore you need to inform the bank immediately, due to risk implication over the property and the bank’s security.

insurance


Claiming on your FNB Life Insurance

Documents required in event of death:

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If the cause of death is natural, (for example, due to illness), the claimant will need to provide the additional following documents:

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If the cause of death is unnatural, (for example, due to an accident), the claimant will need to provide the additional following documents:

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FNB Life will let the claimant know if they need any other documents, such as a post-mortem report or blood alcohol results.

The insurance company reserves the right to reject any claim, if the claim is not submitted

within 6 months, from the date of death. Please refer to policy document, this only applicable to FNB embedded.

The following documents are required for disability claim:

The first step is to inform the bank of the intention to claim. Then, several documents must be submitted to the insurance company.

These include:

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Letter confirming proof of executorship.

Death Certificate.

Fully completed claim form.

A certified copy of the death certificate;

And a certified copy of the deceased’s Identity Document.

A certified copy of the death certificate;

A certified copy of the deceased’s Identity Document; and

A police statement / Inquest Report.

The application for disability.

Confidential medical report (from the treating medical specialist).

A declaration by your employer.

Copies of your medical reports (not older than 6 months).

A copy of the official boarding letter.

Copy of the insured person’s Identification Document.

insurance

Note: A claim must be submitted within 6 months after the insured person passes away, and will only be finalised, once all the documents have been received.


9.2 Home-Owners’ Cover

Home-Owners’ Cover is a condition of your FNB home loan.

The insurance is against damage to the building and permanent fixtures of a house and outbuildings, due to natural or unforeseen events, such as fire or a burst geyser, and excludes wear and tear.

Home-Owners’ Cover insures your property and any structural improvements to the property, for the replacement value of the property.

This insurance is compulsory on Freehold property offered as security, and must remain in place, as long as there is a registered mortgage bond, in favour of FirstRand.

For OUTsurance Home-Owners’ Cover we allow the premium to be included in your monthly repayment, however all other third party Home-Owners’ Cover insurance needs to be paid by the customer.


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Increases year-on-year.

Customer may provide own cover – provided that it’s acceptable to the bank.

FNB Housing Finance will confirm if the third party policy is paid and in good standing, and the replacement value is acceptable.

Based on full replacement value of the property.

Premium is calculated by the Insurer, and is based on the replacement value of the property, as conducted by the Home Loans Valuator.

insurance


budgeting10

the importance thereof

FNB Housing Finance | Home Ownership Programme | SECTION TEN


my monthly budgetMy Income

My Expenses

Provisional loan

Net Income (as per payslip)

Total Net Income

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R

Life/short-term/car insurance premiums

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Groceries

Total other monthly repayments (specify)

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R

Telephone (cell phone) R

Furniture accounts R

Stokvels / Saving schemes

Levies / professional subscription fees

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R

Child support/pocket money R

Clothing accounts R

Internet subscriptions R

Total Expenses R

Travel expenses R

Domestic help salary R

School fees/education R

Entertainment R

Water & electricity R

Parking R

DSTV R

Other hire purchases R

Bond repayments R

Overdraft facility R

Credit card/s repayments

Revolving/Rotating payments (specify)

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R

Car repayments R

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R

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R

My Partner’s Income

My Partner’s Expenses

Provisional loan

Net Income (as per payslip)

Total Net Income

R

R

R

Life/short-term/car insurance premiums

R

Groceries

Total other monthly repayments (specify)

R

R

Telephone (cell phone) R

Furniture accounts R

Stokvels / Saving schemes

Levies / professional subscription fees

R

R

Child support/pocket money R

Clothing accounts R

Internet subscriptions R

Total Expenses R

Travel expenses R

Domestic help salary R

School fees/education R

Entertainment R

Water & electricity R

Parking R

DSTV R

Other hire purchases R

Bond repayments R

Overdraft facility R

Credit card/s repayments

Revolving/Rotating payments (specify)

R

R

Car repayments R

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R

R

R

R

R

R

R


The Importance of Budgeting

When you become a home-owner, the importance of budgeting can’t be over-stated. After all, how will you know if you can afford to cover all of the costs involved with owning a home, as well as all of your other bills?

Budgeting is vital to successfully to manage your finances.

To work out how much money you have available to spend on your home loan repayment, deduct all your expenses from your income.

Another reason for budgeting is saving; in other words, helping you to spend less than you earn. Budgeting shows you where your spending weaknesses are and provides the structure for you to get stronger in those areas.

Use the template budget on the previous page.

Step 1: Know how much you actually earn.

The correct answer here is not just your monthly salary.

Instead, you should be basing your budget on your take-home (net) pay per month.

Step 2: Estimate your monthly expenses.

The best way to do this is to keep track of how much you spend during one, two or three months. In your worksheet, separate fixed from flexible expenses. (Fixed expenses are those that don’t change from month to month, like insurance payments. Flexible expenses, like entertainment, do change.)

Remember to add in ‘new’ monthly costs you may not have had in the past:

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Keeping track of your expenses works best if it’s based on real and actual numbers. This means pulling out your receipts for the last few months – all of them – and figuring out what you’re actually spending.

Bank service fees.

Rates and taxes.

Utilities (refuse removal, water, electricity).

Levies (if you live in a Sectional Title complex).

Short-term insurance, to cover the content of your property.

Repairs and maintenance of your home and garden.

budgeting


Don’t forget the irregular expenses, either, like car licenses and so on. These shouldn’t be unexpected surprises.

Step 3: Work out the difference between them.

Once you’ve totaled your monthly income and your monthly expenses, subtract the expense total from the income total to get the difference between them. A positive number shows that you’re spending less than you earn – well done! A negative number shows that your expenses are greater than your income, so you’ll need to trim your expenses to live within your means.

Step 4: Keep budgeting, every single month.

The most important step is to continue budgeting; to track your budget over time to make sure you’re sticking to it. If you find you aren’t able to follow your budget successfully, it may mean that your plan isn’t flexible enough.

It can take revisiting your budget a few times to find the balance that works for you.

What does budgeting allow you to do?

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Find out what your current financial situation is, and start planning ahead.

Get out of debt by paying off your accounts.

Prove to your bank that you can manage your finances.

Put money away to maintain your property.

Keep track of all your monthly expenses and record them.

Make provision for future expected events (children’s education), and unexpected events (medical bills).

If you are experiencing financial difficulty, please speak to FNB immediately, to find out how we can assist you.

budgeting

Remember: Budgeting doesn’t just prove to your bank that you can manage your finances; it also helps you to maintain your property and to provide for expected events (children’s education) and unexpected events (medical bills).


cancellation11

or settlement of bond

FNB Housing Finance | Home Ownership Programme | SECTION ELEVEN


Settlement and cancellation of bond

You may for different reasons wish to cancel or settle your home loan account, prior to the agreed term indicated on the signed Mortgage Loan agreement.

The reason could include:

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Should you wish to repay the bond, due to the reasons mentioned above, an early termination fee is charged by the bank.

The early termination fee is equal to no more than the interest which would have been payable, under the agreement for the period, equal to the difference between 3(three) months, and the period of notice settlement, if any, given by you.

When buying the property, the loan granted by the bank is secured, by means of a bond registration in favour of the bank, against the property in the Deeds Office.

Once you sell the property, or settle the debt, the bond in the Deeds Office has to be cancelled.

The process is as follows:

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Sale of the property.

Switch of bond to another financial institution.

Cash settlement.

You, or an attorney, must notify FNB Housing Finance that the property is sold, or if you switch your bond to another financial institution. Should the debt, however, be settled FNB Housing Finance will contact you. Kindly note that you are still liable to pay the monthly home loan repayment, until such time as the bond is cancelled in the Deeds Office.

Cancellation figurers or is issued by FNB Housing Finance, and a panel attorney is instructed to attend to the process, and cancellation of the bond in the Deeds Office. The instruction to the attorney is accompanied by the title deed and bond deed.

Should you be selling the property or switch your bond to another financial institution, the panel attorney will, on behalf of the bank, request guarantees from the transferring or bond attorney to cover the cancellation figurers to settle the bond account. This must be furnished before the bond will be cancelled in the Deeds Office. The guarantees are payable, on the day the bond is cancelled in the Deeds Office.

Note that all attorney costs are payable directly to the attorney, if no provision was made for the costs, in the settlement figures.

cancellation or settlement of bond


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Once the bond is cancelled in the Deeds office and the guarantee amount received by FNB Housing Finance, the cancellation consultant will close the account on the system.

Any over-recovered money will then be refunded to you.

FNB Housing Finance will suspend all insurance premiums, if any are recovered through the home loan account. FNB insurance is not transferable and is cancelled automatically with the account is closed.

In the case of a cash settlement the Title deed will be delivered to the customer by the panel attorney within approximately 3 months after bond cancellation in the deeds office.

cancellation or settlement of bond

When buying the property, the loan granted by the bank is secured, by means of a bond registration in favour of the bank, against the property in the Deeds Office.


pre 12

and legal

FNB Housing Finance | Home Ownership Programme | SECTION TWELVE


12.1 Financial difficulties

What happens if you fall behind on your monthly home loan repayments?

In the unfortunate event that you find yourself in financial difficulty, you should know what to do and what your options are.

Contact the bank immediately, if you answer “yes” to any of the following questions:

•

•

How can a collection consultant help?

You can discuss your problem with a collection consultant and they will inform you of the various options available to assist you.

A collections consultant can help you with options, such as:

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•

What should you do, if you begin having difficulties paying?

Contact your bank, if you are having financial problems. Give them the following information (these must be the LATEST documents):

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Defaulting on payments: What happens if you default on payments?

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If the interest rate goes up, you will not be able to pay your monthly home loan repayment?

You have too much debt (you are over-indebted)?

Payment arrangements.

To willingly let the bank sell your homefor you.

Proof of income and expenditure.

Pay slip.

Bank statements.

Priorities paying off your debt.

In some instances, it is better to sell your home willingly on the open market, than at an auction. It is more likely that you will get more for your home on the open market, than at an auction and you may even make a profit, when selling your property willingly.

If you do not keep to any of the terms and conditions in the mortgage loan agreement that you have signed for, such as not paying monthly repayments, you are in breach of your contract.

The bank will write and/or phone, advising you that your home loan repayment/s are outstanding.

pre and legal


•

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The bank will proceed with foreclosure. The legal process will commence and after judgment is obtained, then the attorneys may proceed to attach the moveable’s (such as TV, car and furniture) first, before attaching the property.

12.2 Debt Counseling

What do debt counselors do?

Your right to debt counseling, the debt counselor will carry out the following procedures:-

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•

There will be 3 possible outcomes:

They will ask you to contact them to make an arrangement, to settle your arrears.

If your, account remains in arrears or overdue, the bank will hand your account over to the banks attorney.

The attorney will follow a prescribed legal process (governed by legislation), to try to recover the money you owe the bank.

If they cannot recover the money owed, the bank will ask the attorney to start court proceedings to repossess your home, so that it can be sold to recover the outstanding balance.

You will have to pay for the legal costs associated with the above.The legal process regarding attachment of movable property.

Analyse and assess your financial status.

Provide proof of application for a debt review to credit providers and everycredit bureau.

If you are found to be over-indebted, your debt counselor must issue a proposal to the Magistrates’ Court to either:

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•

If you are found NOT to be over-indebted:

•

If you are found NOT to be over-indebted but you are experiencing financial difficulties:

•

Declare one or more credit agreements reckless, and/orRearrange the obligations by:- Extending the period of repayment and/or postpone the repayments.- Reducing the amount of repayment and therefore extending the period.- Postponing the repayments.- Recalculating your obligations.

The debt counselor will reject the application and you will be required to meet all your financial commitments.

The debt counselor may encourage a short-term temporary rearrangement plan with consent from both you and the credit providers.

pre and legal

1

2

3


pre and legal

The downside of debt counseling.

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12.3 Repossession

If you don’t pay for your bedroom suite, the store will want to repossess it – right?

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Advantages of selling your home before itis repossessed:

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12.4 Sale in Execution

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You will not be allowed to enter into any other credit arrangement while you are under debt counseling.

The interest on your bond account will increase every month, thereby increasing the outstanding bond amount.

Deferred repayment due to debt counseling arrangements (paying less than required), could result in the loan amount owed exceeding the value of your property/investment.

Banks DO NOT want to repossess your home! It is not in our or your best interest!

Repossession is a last resort.

Banks generally lose money if they repossess anything.

If you lose your home, the bank also loses a customer.

Banks don’t have to sell the home on your behalf.

Banks may be able to assist you with the sale process, for example, they will advertise your property on their website, free of charge, provided that a mandate is signed to assist with the selling of the property.

Where the arrear amount remains outstanding, the bank may choose to recover it by attaching and selling your moveable assets (such as TV, car and furniture).

Banks repossess your property and sell your home to try and clear part, or all of the debt that you owe.

Banks often don’t clear all the debt and make a loss when selling your home for less than you paid for it, therefore, you don’t receive any money from the sale.

Banks are prepared to take some loss, in order to get back some outstanding money.

Banks have the right to sell your property in a Sale in Execution (repossession) – as you sign the property over as security, when you take out a home loan.


pre and legal

12.5 Foreclosure

A customer’s bond may fall into arrears, due to the change in their financial circumstances. The pre-legal department will attempt to make arrangements with the customer to settle the arrears. Should the customer default on the arrangement and the account is high in arrears, the account will be transferred to the legal department to commence with foreclosure.

Foreclosure is a legal process which may lead to a Sale in Execution. At the Sale in Execution, the customer’s property will be auctioned by the Sheriff.

You may, at any time, enter into an arrangement with the bank to settle the arrears and any legal fees incurred.

12.6 Shortfall on Property Sold,or Sold at Auction

There are two main outcomes for a Sale in Execution, i.e. the property will be sold to a third party or the bank could buy-in the property. If there is a shortfall:

If there is loan cover, then the bank will lodge a claim with FNB Life for the loan cover. Once the loan cover is paid over to the bank, then the shortfall will be written off.

This is a business decision, but legally the bank has the right to claim the shortfall from the customer.

If there is no loan cover, then the account is written off and the customer is liable for the shortfall. Our SSI department will contact the customer and negotiate payment ofthe shortfall.

12.7 Retrenchment Claims

Some customers have loan cover, to assist them in the event that they are retrenched. The bank will assist the customer to lodge the claim with FNB Life.

If there is a policy with another insurance company and it’s ceded to the bank, the bank will lodge the claim with that insurance company.

The bank will follow up on the payment of the claim. If the claim is paid out, then the customer has time to find another job and to start maintaining the installments.

If there is no retrenchment cover, then the customer has to try to enter into arrangement with the bank to settle the arrears and pay the installments.

If the customer can’t enter into arrangement with the bank, then the foreclosure process will commence. However, the customer still has the opportunity to try to settle the arrears.


growing13

your investment

FNB Housing Finance | Home Ownership Programme | SECTION THIRTEEN


growing your investment

How to increase the value in your home

There are different ways to increase the value of your home, including gardening, extending or renovating your home, working with your community to improve your neighbourhood and even general ongoing maintenance.

What is over-extension or over-capitalisation?

Over-capitalisation means that you improve your property to such an extent, that its value is much higher than the average house’s value, in your immediate area.

For example, you build a double-storey house with a swimming pool, etc. while all the other houses in your immediate area are only two bed roomed units without gardens.

This will make it difficult for you to make back what you’ve spent on the property when you want to sell it.

There are different ways to increase the value of your home, including gardening, extending or renovating your home, etc.


important14

contact details

FNB Housing Finance | Home Ownership Programme | SECTION FOURTEEN


important contact details

Who can help me?

Your financial institution’s customer care line.

Your financial institution’s Customer Care line should be your first option when you have enqueries with anything regarding your home loan. The people staffing the lines will try to give you all the assistance they can.

First National Bank Housing Finance 0877 366 000

FNB Trust Serviceshttps://www.fnb.co.za/home-loans/smart-bond.html

OUTsurance 0860 070 000

Banking Services Ombudsman 0860 800 900

The Banking Services Ombudsman operates independently from any bank, and was set up to provide an independent, transparent and fair way for complaints between customers and banks to be resolved.

The Ombudsman can only becomeinvolved, if your bank is a registered financial institution. Banks undertake to abide by the decision of the Banking Services Ombudsman.

The Ombudsman handles complaints if…

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National Credit Regulator 0860 627 62

The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry.

It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring enforcement of the NCA.

You have tried to resolve the complaint with your bank.

The complaint relates to the bank’s own products or services, and advice given by the bank’s own staff, regarding its own or another institution’s products.

There has been misadministration on the part of your bank, leading to some loss, distress or inconvenience which you have experienced.

The complaint involves a claim for less than R800 000.

The complaint arose within the past 3 years.

https://www.fnb.co.za/home-loans/


important contact details

guarantee the workmanship. If your builder is not enrolled with the NHBRC, your property will not be covered.

Legal Aid Board 0800 204 473

The role of the Legal Aid Board’s is to provide legal aid to those who cannot afford their own legal representation. Their aim is to provide legal aid to as many poor people as possible, including vulnerable groups such as women, children or anyone who is classified as being poor or vulnerable.

The Estate Agency Affairs Board (EAAB) (011) 7315600

The Estate Agency Affairs Board (EAAB) was established in 1977, in terms of the Estate Agency Affairs Act 112 of 1976 (‘the Act’), with the mandate to regulate and control certain activities of estate agents, in the public interest.

The EAAB regulates the estate agency profession through ensuring that all persons carrying out the activities of an estate agent as a service to the public, are registered with the EAAB.

A Fidelity Fund Certificate, which has to be renewed each year, is issued as evidence of such registration and confirmation that such person is legally entitled to carry out the activities of an estate agent.

The Banking Association of South Africa (011) 6456700

The Banking Association of South Africa is a not-for-profit industry body representing all registered banks in South Africa. The Association’s broad role is to “establish and maintain the best possible platform on which banks can do progressive, responsible, competitive, profitable and sustainable banking”.

National Home Builders Registration Council (NHBRC) 0800 200 824

The National Home Builders Registration Council was established in terms of the Housing Consumer Protection Measures Act, 1998 (Act No. 95 of 1998).

The Council was mainly established to protect the interests of housing consumers, and to regulate the home building industry.

Their mission is to:

If you build a new home or make any structural changes to your existing home, you must ensure the contractor is registered with the NHBRC, as they will

- Regulate the home building environment.- Protect consumers.- Promote innovative technology and compliance.- Capacitate home builders.


explanations15

of terms

FNB Housing Finance | Home Ownership Programme | SECTION FIFTEEN


explanation of terms

Auction

Where the Sheriff sells the property at a public auction in order to recover the debt owed to the bank. A court order is needed before the Sheriff may sell the property atan auction.

Beneficiary

The person a customer nominates in a policy or a Will to receive assets/benefits when he/she dies.

Body Corporate

In a Sectional Title complex all home-owners’ are members of the Body Corporate. The Trustees of the Body Corporate run the affairs of the complex on the home-owners’ behalf. The home-owners’ elect the trustees.

Bond (Mortgage Bond or Covering Bond)

The Bond (Mortgage Bond or Covering Bond) document is the legal binding contract between the Borrower and the Lender.

The Lender can be a registered financial institution or a company. It is to ensure that the money borrowed will be repaid.

The bond document is registered in the Deeds Office and remains in effect, until such time as it is cancelled.

What does it mean?

Administration Fee

A monthly fee charged by the bank for maintaining and administering a home loan account. This is also called a Service Fee.

Affordability

The bank uses the applicant’s net monthly income which is then deducted from the net monthly living expenses to determine the net disposable income.

The net disposable income is used to determine the size of the loan the bank may offer.

Approval in Principle (AIP)

This decision is given by the credit department, when the customer’s affordability has been assessed, prior to the valuation of the property taking place.

Authority to Pay Beneficiary

Authority by the customer to the bank to pay funds to a nominated person.(see Beneficiary)

Arrears

An unpaid/overdue debt or an unfulfilled obligation that happens if a customer doesn’t make their loan repayments on time and when it’s due.



The builder is obliged to:- Build a quality product.- Build in terms of the contract, plans and specifications.- Build in a reasonable time (usually stipulated in the contract).- Repair any defects in terms of the contract.

Building Contract

A written contract between a customer and a builder, where the builder undertakes to build a housing structure according to the contract, the specifications, the plans and the costs agreed to with the customer.

Builder’s Lien

A builder’s lien secures a claim for payment for work done on - or materials supplied to - a construction project or for repairs or renovations made to an existing structure.

Cancellation

All bonds are registered and cancelled in the Deeds Office. Bond cancellation follows a legal process that must be handled by a Conveyancer.

In order for the property to be sold, the bond must be cancelled in the Deeds Office.

No funds can be paid out from the home loan until the registration of the Mortgage/Covering Bond is affected in the Deeds Office.

The Mortgage/Covering Bond gives the bank a preferment (first) right, against the Borrower to the property, in circumstances of insolvency, and/or failure to honour the conditions of the bond.

It affords continuing covering security for our loan. The actual money borrowed is called the home loan.

Borrower

A person who obtains a loan from the bank. The Borrower commits to repay the loan amount plus interest and charges over a period of time, as mentioned in the mortgage loan agreement.

Budget

A financial plan that guides people to take control of their debt and spending patterns usually on a monthly basis.

Builder

The customer selects the builder of his/her choice. The builder must be reputable and registered with the NHBRC. (See NHBRC for details)



Debt Consolidation

A plan that combines all the customer’s debt under one account with one financial institution, so that a more affordable monthly payment plan can be made.

Debt Counseling

If a customer is in financial difficulty they can approach a debt counsellor. This counsellor will review all the customer’s debt obligations and may be able to deal with creditors to restructure the debt.

Debt Review

If a customer has met with a debt counsellor and had arrangements made with creditors, they’re considered to be under debt review and will be listed on the National Credit Register.

No credit provider may lend them any further funds during this time when the customer is under debt review.

Debit order

A method of payment where the bank is authorised to debit a customer’s bank account with a certain amount of money on the same date every month.

Cooling-off Period

This is one of the conditions in the Agreement of Sale, obliging the Seller to give a defaulting Buyer written notice, to remedy the breach of contract within a specific period, (usually seven days), before the Seller can cancel the sale.

Condition of Title

These are the conditions that may limit a property owner’s rights, as recorded on the title deed of the property. They cover things like mineral right reservations, servitudes and building limitations.

Contract

A legal agreement between two or more people to regulate a certain relationship (like you and the bank entering into a loan agreement, for example).

Conveyancer

An attorney, who is qualified to prepare documents, attends to the transfer of immovable property, and register/cancel Mortgage Bonds in the Deeds Office.

Cover

The protection/benefit given byinsurance providers.



Electrical Compliance Certificate

A certificate issued by a qualified electrician to confirm that the electrical installation of a property, from its supply point, is safe.

An Electrical Compliance Certificate is required in order for the transfer of ownership to take place.

Entomologist’s Certificate

A certificate issued by a pest control company (required by law in some provinces) to confirm that the structure is free of woodborer or termite infestations.

Transfer can’t happen without this certificate.

Excess (Insurnace)

The amount that a customer has to pay out of their pocket before insurance pays out a benefit.

Expenses

Refer to the costs incurred to purchase specific goods or services.

Fixed Expense

An expense that does not change frequently, such as loan payments or rent.

Deceased / Late estate

In the event of the death of a customer, their fixed property must be sold or transferred to a surviving party, in terms of the customer’s will.

An Executor of the Estate will be appointed (usually an attorney, bank, or magistrate), to ensure that the estate is attended to correctly.

The Executor will liaise with our Deceased Estate Department, which is part of our Arrears Litigation Department. Together they will ensure that the FNB home loan account is finalized, in accordance with the will.

Deeds Office

The government office where all legally binding contracts relating to immovable property are recorded and registered.

Defaulting

When someone fails to honour the terms and conditions of a contract; for example, they are unable to repay debt like a home loan.

Domicilium Citandi et Executandi

The physical address where a party to a written agreement accepts the delivery of legal notices.



Freehold Title

The type of property ownership where the entire property, including the garden, the house itself, any border walls, etc. belongs to the Buyer (and not shared with other home-owners’).

Further Loan

This facility allows a customer to apply for and register an additional loan, over and above the home loan already registered. This application is subject to the credit criteria, as well as the valuation report.

The customer is liable for registration costs, and initiation fee.

A single monthly repayment for the original, as well as the further loan, is deducted from the customer via debit order.

Gross Income

A person’s income amount before deducting tax, medical aid, UIF and pension fund.

Grant

To give someone access to something or offer a deal with all the detail contained in it – to reach an agreement.

Fixed Interest Rate

This is an agreed-upon interest rate that does not change over a pre-determined period of time (usually with FNB it is three years), even though there may be changes in the bank’s base rate or even prime rate.

After this term, the rate will change back to the variable interest rate, unless you renew the fixed rate option at the rate offered at that time.

Make sure that you monitor the variable interest rate fluctuations (changes) to prepare yourself, if the variable rate at the end of the fixed rate contract period is higher than the fixed rate.

Fixtures and Fittings

Permanent attachments to a home, including light fittings, fitted carpets, fitted blinds, curtain rails, TV aerials and eye-level ovens.

The Seller may not remove these when they leave the property, unless specified as a special condition in the Agreement of Sale.

Foreclosure

When the home loan agreement between a customer and a bank is cancelled by legal action. This happens when a customer doesn’t comply with the conditions of the agreement or neglects to repay the debt in terms of the agreement.



Income

The amount of money that people earn, usually from an employer, in the form of a salary or wage.

Insolvent Estate

Where the value of a customer’s liabilities exceed the value of the customer’s assets. Customer will be declared insolvent by the court and the court will appoint a Trustee to manage the property.

Insurance Premiums

A legal contract in which an insurer (company), promises to pay out a specific amount of money to the insured (you), the bond holder or nominated beneficiaries in the event of death, permanent disability or any loss, covered in terms of the insurance contract.

Interest

The additional amount that you pay for the privilege of borrowing money from the bank. Interest on a home loan is calculated daily and capitalized monthly in arrears.

Interest Rate

This is what the bank charges for lending Borrowers money, as a percentage of the unpaid or outstanding principal debt.

Guarantee

A document that guarantees the payment of a certain amount of money when a certain specified event happens, e.g. a bank guarantee in favour of a seller, payable on the transfer of a property into the name of the purchaser.


The insurance is against damage to the building and permanent fixtures of a house and outbuildings.

The damage must be caused by a violent, external force which is unpredictable and unpreventable (not due to wear and tear).

Home Loan

Also called a mortgage loan, a home loan allows customers to borrow money from a financial institution, like a bank in order to finance the purchase of immovable property.

Household Content Insurance

A short-term insurance policy that covers household belongings (TV, decoder, furniture, etc) against loss or damage.

Immovable Property

An item of property that can’t be moved, like land, and everything that is permanently attached to it, like a house.



This amount of money will be used to settle (pay off) the outstanding debts, and the balance of the money will be given to the nominated beneficiaries, as set out in the Will or Life Policy.

Life Insurance

This will pay off the bond in case of death or permanent disability of the bond holder. These premiums can change every year and you will be informed of any changes by the insurance company.

Loan Amount

The total amount of money that a customer borrows from the bank. This is also called the principal debt.

Loan Term

The time period a customer has to repay a home loan.

Loss Payee

If a life insurance policy is taken to guarantee the payment of the home loan, the bank will have to be noted as the Loss Payee.

In the event of that customer’s death, the outstanding balance is settled with the bank first and whatever amount is left from the death claim is paid to their Beneficiary.

There are two types of interest rates: fixed and variable. A fixed interest rate is an agreement between the bank and the Borrower that an agreed rate will apply for an agreed term.

A variable interest rate changes in line with the prime lending rate.

Intestate

When a person dies without leaving a valid will. This allows the court to appoint an administrator to divide their Estate (belongings and money), according to the rules set out by law (and not necessarily in accordance with the known wishes of the deceased).

Levy

The monthly fee payable to the Body Corporate of a Sectional Title property for the maintenance of the complex, including gardening, swimming pool, rates and taxes, refuse collection, common walk ways etc.

Liability

An item of value that is part of the overall debt or obligation of a person or business. For example, a mortgage is a liability of the home-owner or Borrower.

Life Cover

A long-term insurance policy that will pay out a certain amount of money in the event of death or permanent disability.



in line with the appropriate technical building requirements and in line with the written agreement between the builder and the customer.

Net Income

A person’s income after deducting tax, medical aid, UIF and pension fund contributions.

Obligation

A legal agreement, specifying a payment or actions and the penalty for failure to comply.

Offer to Purchase

The written contract, between the Seller and the Buyer, that records the terms and conditions of the sale of the immovable property.

This is also called a Sale Agreement or a Deed of Sale.

Prime Lending Rate

This rate is used as a guide for computing interest rates for borrowers.

Principal Debt

The loan amount that a customer borrows from the bank, excluding interest.

Mortgage Bond

The name for the legally binding document registered in the Deeds Office that says that the property is being held by the bank as security for a loan.

Mortgagee

Lender/Creditor (usually a bank) that lends money against the security of the property purchased.

Mortgagor

The Borrower (Debtor) who borrows from a Lender to buy a property against the security of the property purchased.

Mortgage Loan Agreement

A legal agreement between a customer and the bank to repay the loan advanced to purchase immovable property. The agreement is also known as a Home Loan Agreement.

Movable Property

Any item of property that is easily transportable, like furniture, motor vehicles, plants and machinery.

NHBRC (National Home Builder’s Registration Council)

The NHBRC ensures that homes are built in a workmanlike manner, suitable for habitation,



Repo Rate

The interest rate stipulated by the Reserve Bank.

Salary Deduction

A payroll system that deducts repayments directly from your salary.

Sectional Title

A type of property ownership where a customer buys a portion in a larger complex; for example, where they only own their unit, flat or townhouse within a complex.

Snag List

A list of defects to the housing structure being built by the developer.

Stop Order

When your employer has a payroll system that deducts payments directly from your salary and credits it to your home loan account.

Term

The period over which a home loan has to be fully repaid to the bank.

Progress Payment

Payment made as on a contract on the basis of costs incurred, percentage of completion accomplished, or a particular stage of completion.

PIP (Properties in Possession)

The historic names given to properties that have been bought in by the bank at a public auction.

Re-Advance

This is a facility available to the customer, whereby the amount by which the original loan amount has been reduced, is available.

In other words, the Borrower may re- apply to access the difference between the Registered Bond Amount and the Current Outstanding Balance.

Registration

The legal process followed by Conveyancers (lawyers) for the transfer of property ownership and registration of Mortgage Bonds.

Repayment

The minimum monthly amount that must be repaid to ensure that the loan and interest are settled over the agreed period.



Variable Interest Rate

This is an interest rate that fluctuates, when the bank’s rate changes. If the interest rate changes, your monthly home loan repayment can also change.

Voetstoots

A Dutch word used in the Agreement of Sale, meaning that a property is bought as it is, with all of its patent and latent defects.

A Seller can still be held liable for defects known to him/her that he/she fails to disclose to the Buyer.

Waiver

A relinquishment (giving up) of a claim, privilege or right.

Waiver of Lien

This is a legal document, where a contractor waives his common law right, to hold control over a property, if he is not paid in full.

Will and Testament

A written and signed document, that clearly explains how you want your assets distributed on your death.

Terms and Conditions

The list of everything the parties have agreed to.

Testator/Testarix

A person who has made and signed a legally valid will.

Title Deed

The name for the legally binding document registered in the Deeds Office where the name of the owner of the property is registered.

Total Interest Charges

This is the total amount of interest a customer pays for borrowing money from the bank. It is calculated daily on the outstanding balance of the loan and capitalised monthly on the repayment date.

In short, the amount that customers still owe the bank attracts interest on a daily basis.

Transfer Duty

The government tax payable for buying a property and payable to SARS.

Trustee

A group of elected owners in a complex, who act on behalf of the Body Corporate to enforce the complex rules, decide what monthly levies are spent on and generally administer the affairs of the complex.

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