Looking to purchase a property, house is valued at 1.6million, the seller owes R870 000, he says I can have it at settlement amount owed to bank

I don't want to take a new bond but rather pay money into the home loan account and settle that 870k in about 1.5 years and when it's paid up, transfer on my name

I have 30 percent of settlement to put down now. With further 20% in next 2months

How can I structure a contract to safeguard the money I'm paying into the home loan account of seller?  Also how much will be cost to draw up contract 

Hi there,

I see that you haven't made a payment for the question, but I'm going to assist you a little. If you want to ask a follow-up question, please make the required payment.

My advice is NOT to structure the contract this way! You are putting yourself at too much risk!

Rather, you need to apply for your own bond and then get transfer of the property registered with your own bond. Then, in 2 months time you pay off a large part of your own bond with that 20%, and within the next 1.5 years you can pay off the rest. 

It is much safer to pay off your own bond than this person's bond!

If you REALLY want to structure it this way, you can, but you'll need to ask a lawyer to assist you in drafting the agreement, and it might cost you R8,000 or a little bit more and you might need to register your own bond over the property!

I can't refer you to a specific lawyer, but I can direct you to www.southafricanlawyer.co.za, where you can find a list of qualified lawyers in your area who will be able to assist you further!

Att. Patrick

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