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Purchasing property in South Africa
 Not so many years ago many people were choosing to move away from South Africa but, as the rising prices in the property market illustrate, that trend has turned. Above all, it is the Germans and the British who are buying property but even many Scandinavians have now found their way to South Africa. It is primarily areas around Capetown and areas along the coast facing the Indian Ocean which have become popular. The fine climate, the stable infrastructere and comfortable lifestyle are the appeal.
There are no restrictions in South Africa for foreigners buying apartments or houses.
The Buying Process
When one has located a home that one wants to buy, the usual way of proceeding is to give a formal offer for the property. This offer becomes the basis for the official purchase and contract. When an agreement has been reached, an Agreement of Sale is signed by both parties and is legally binding. Normally at this time, a deposit, usually 10%, is payed. Prior to this, it is important that as a foreigner one has opened an account in a South African bank so that funds are available.
As is the case in most countries, the buyer and seller should have solicitors who assist in the process. As soon as the sales contract is complete it should be registered at the South African Deeds Registry. This governmental organ functions extremely well and is an official registry open to all. Here one can learn details about previous owners and anything of a legal nature pertaining to the property. When a property passes to a new owner, all financial commitments, loans and others, stay with the previous owner unless specified otherwise in the contract.
Financing
When purchasing a house or apartment in South Africa one can as a foreigner borrow up to 50% from a South African bank. The remaining 50% must be transferred into a South African bank via a bank abroad.
Costs
Costs for transfer fees, transfer duty, stamp fees etc. must be payed by the buyer at the time of purchase and reaches around 10%. Solicitors' fees vary depending on the amount of work provided but one can expect the amount to land around 15,000 Swedish crowns. Real estate agents fees vary but are normally around 5%. This fee is sometimes payed for by the seller and sometimes by both parties depending on the sales agreement.
Please note! This information should only be seen as general guidance. Since laws, taxes and fees often change, a buyer must always inform himself of the latest rules and regulations.
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