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WHO QUALIFIES
FOR A HOME LOAN?
0861 Home Loan subscribes to
standard legal definitions of those categories of
people who may legally buy property in South Africa.
If you may buy property, then you may apply for a
0861 Home Loan.
Please use the list below to establish which category
describes you best, and what special conditions apply
if you want to buy property.
An individual
Any natural person over the age of 21 years.
Two or more individuals,
not married
Any natural persons over the age of 21 years who wish
to purchase a property in their joint names.
Married
couple
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Out
of community of property
This is where both partners have full contractual
power. The bond can be in joint names, or either
name, provided that the applicant qualifies in their
individual capacity.
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In
community of property
The bond must be registered in joint names of both
partners.
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Foreign
matrimonial property system
The contractual capacities of the marriage partners
is viewed according to the law of the country where
they were married.
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Customary
union (Tribal Law)
This is not recognised as a legal marriage. A woman
may purchase property in her own right - except
for a Zulu woman who is married in accordance with
Section 46 of the Natal Code of Zulu Law. This states
that she is unable to enter into a contract without
her husband's consent. The bond may be in joint
names, or in either name, provided the applicant
qualifies in their own capacity.
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Customary
union (Religious, for example, Hindu or Muslim)
This is not recognised as a legal marriage unless
the marriage was conducted by a magistrate or commissioner.
If it is not legal then the bond may be in joint
names or either name, provided that the applicant
qualifies in his/her own capacity. If it is legal,
then the bond must comply with the terms laid down
in the marriage contract. The registering attorney
will ensure that all documents are signed in accordance
with the Matrimonial Property Act.
Minor
An unmarried person younger than 21 years must obtain
consent from the Supreme Court in terms of Section 80
of the Administration of Estates Act 60 of 1965 before
buying property.
Contract worker or worker
seconded or recruited from abroad
Such a worker can buy a property only after being placed
on record with the exchange control authorities.
Official or employee
in the public sector
An applicant who qualifies for the Government Guarantee
Scheme and is a government employee - for example, a
member of the police or navy - may buy property as a
civil servant.
Close corporation
A close corporation can buy a property provided that
Section 40 of the Close Corporations Act will not be
contravened. This sets out the conditions under which
a close corporation may finance the purchase of a member's
interest. The close corporation should be aware of the
implications of Capital Gains Tax.
Company
A company may buy a property provided that Section 38
of the Companies Act will not be contravened. This prohibits
a company from financing the purchase of its own shares.
Informal body
Recognised churches and associations may buy a property.
Trusts
Inter vivos and testamentary trusts qualify to register
a property in their name.
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