Transfer Procedure
The registration of a property transaction is handled by a specially qualified legal practitioner known as a conveyancer. It is customary for the seller to appoint the conveyancer to attend to the registration of transfer of a property sold, whilst the costs attendant thereon are for the account of the purchaser, unless contractually agreed to otherwise.
The conveyancer prepares the requisite transfer documentation which, after signature by the purchaser and the seller, is lodged together with the cancellation of any existing mortgage bonds and new mortgage bonds to be registered in a regionally located Deeds Registry.
The deeds are subject to an intense examination process whereafter they are made available for registration. On the date of registration of transfer all existing mortgage bonds registered over the property are cancelled simultaneously with the registration of any new mortgage bonds by the purchaser in favour of the bank granting financial assistance.
The purchaser is recorded as the new owner of the property and the purchase price is paid to the seller. The above procedure does not apply in the situation where the shares/members interest and loans are acquired in a property-owning company/close corporation as no change in ownership is recorded in the Deeds Registry.
It is important to note that upon transfer to the new owner, any liabilities in respect of the property incurred by the previous owner, remain with the previous owner and do not necessarily pass to the new owner, unless otherwise agreed to.
As the Seller, you will want to know how soon you will receive your money.
While the Transfer process follows a series of successive stages, the time period involved varies considerably.
Generally, the following guidelines apply:
A cash transaction may take approximately 6 weeks.
Within normal circumstances (including Bond approval) approximately two months.
If conditional, upon the sale of the Purchaser's property (within 30 days) approximately 3 months.
Stage 1
The Agreement of Sale is concluded between the Purchaser and the Seller, who have been brought together by the Estate Agent.
Stage 2
The Purchaser makes his initial payment (deposit) and receives a copy of the Agreement of Sale for his records, as does the Seller. The Transferring Attorney is furnished with a copy of the Agreement of Sale to enable him to draw up his documents and we file the original.
Stage 3
After the Purchaser has completed the bank application form, we apply for a Mortgage Bond on his behalf.
Stage 4
Once a Mortgage Bond has been granted, we instruct the Entomologist and an Electrician to inspect the property and issue the relevant Clearance Certificates.
Stage 5
The documents required to enable transfer to be passed (Power of Attorney conferred upon the Conveyancing Attorney; Transfer duty Declaration) are drawn up by the Transferring Attorney and signed by the Purchaser/Seller.
Stage 6
The Transferring Attorney (Conveyancer) obtains a Rates Clearance Certificate (a document stating that all rates and taxes for the year have been paid) from the Municipality, or a Levy Clearance Certificate from the Body Corporate if the Purchase is a Sectional Title unit.
Stage 7 & 8
Transfer Duty is paid to the Receiver of Revenue and a Transfer Duty receipt is issued.
Stage 9
All Bond and Transfer documents are inspected by the Deeds Registry and, if correctly prepared, come up for Registration. At this stage, the Purchaser must have the balance of the Purchase price available and the Financial Institution's Attorneys must have the Bond amount available. If the Purchaser is not able to make the funds available, the Seller's Conveyancer will delay registration which may be postponed for no more than Five days before the Deeds are rejected and will need to be re-lodged. The Purchaser may then be put to terms and given 7 days written notice to rectify his default.
Stage 10
After registration, the Title Deeds become available to the Purchaser/Bond holder.
Extra Costs When You Sell :
- Entomologist (Beetle) Certificate (if required)
- Electrical Compliance Certificate
- Bond Cancellation Fee