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Closing the Deal

Closing the Deal

After an offer is accepted by the buyer, a Purchase Agreement is then prepared and is executed when the buyer pays a 10% deposit to “seal the deal” and take the property off the market. Following the execution on the purchase agreement, the buyer will need a copy of the deed; the last paid land and building tax receipt; a cadastral sheet; a Water & Sewage Authority (WASA) Clearance Certificate.

These documents will be given to the buyer’s attorney or the bankers’ attorney. If the property is being purchased through a mortgage, the financial institution will send you to one of their Attorneys to do the mortgage deed. If you use the same Attorney to do the conveyance deed they normally offer a discount on their fees. If you use different Attorneys for both deeds they request the same documents, do the same work and you pay more.

Remember, although the bank sends you to one of their Attorneys to do the mortgage deed you pay the bill. It is your choice. Some Attorneys charge a percentage of the purchase price and others will charge a flat fee.

Once the searches and the statutory clearances are completed the attorney prepares a Memorandum of Transfer to be signed at your Attorney’s office on hand over of the balance payment. Following the execution of this document, it is then taken to the Red House to be registered in the buyer name. This will take 4-6 months. Please note that on the day the balance payment is made and the owner signs over the deed, the property now belong to the buyer to do with as he/she wishes, even though the deed is still not yet registered on your name.