The transfer and registration process.
Once you have found the property of your dreams and have purchased said property, there is a process that has to occur before the property is transferred and registered in your name. Below we will outline this process to you, to give you a better understanding of the steps in the process. It is also important to keep in mind that this process usually takes at least 8 weeks if there are no complications.
After putting in a successful offer on the property you desire, often the first step is paying a deposit to the Conveyancing Attorney’s (the Attorney’s who were chosen to attend to the transfer). This deposit will be kept by said attorneys, bearing interest in your name. Remember to ensure you receive a receipt acknowledging you are earning said interest.
In the event of requiring a Bond to purchase the property, the bank will send out a valuer to determine the value of the property to ensure it is worth the money you are loaning form the bank.
The Conveyancing Attorney’s then get a copy of the Sale Agreement from the Agent and request the Title Deed (this may require requesting the Title Deed and Cancellation figures from the Seller’s bank – if the Seller currently has a bond over the property being sold.
The Conveyancing Attorneys request the Clearance Certificate for the Rates and Taxes over the property from the local Municipality.
The Conveyancing Attorney’s then draw up all the Transfer Documents. These documents include:
- The Transfer Duty or VAT Receipt.
- The Rates and Taxes Clearance Certificate from the Municipality or the Levy Clearance Certificate from the Body Corporate (in the case of Sectional Title)
- Consent of the Bondholder (the Bank which holds the current Bond) to cancel the current Bond (if applicable).
The Bond Attorneys then advise the Conveyancing Attorneys of the amount available for the guarantees.
The Conveyancing Attorneys then instruct the Cancellation Attorneys to cancel the Seller’s Bond (if applicable), which is done upon receipt of the guarantees.
After receiving the Title Deed and Cancellation Figures from the Seller’s Bank, the Conveyancing Attorneys then send a copy of the Deed of Transfer and guarantee requirements to the Registering (Bond) Attorneys.
The transfer documents are then signed by both the Buyer and the Seller, with the Conveyancing Attorneys.
The Transfer costs are then paid by the Buyer, allowing the Conveyancing Attorneys to pay the Rates and Taxes and Transfer Duty to SARS, after which a Transfer Duty Receipt is issued.
The Buyers Bond Account and supporting documentation are prepared by the Bond Attorneys.
The Buyer then signs the supporting documentation and pays the Bond Registration Costs to the Bond Attorneys
The necessary guarantees are then prepared by the Bond Attorneys and forwarded to the Conveyancing Attorneys, who then in turn prepare the Bond documents for lodgement with the Deeds Office.
If applicable the Conveyancing Attorneys then forward the guarantees to the Cancellation Attorneys, who get consent from the bank (which currently has a Bond over the property) to cancel the Seller’s Bond.
Once all documentation has been signed and all the costs have been paid: the Buyer’s new Bond documents, the documents for the transfer of the property, and the documents for the cancellation of the Seller’s Bond, are all prepared by the respective Attorney’s and lodged in the Deeds Office simultaneously.
The Deeds Office takes about 14 days to check all the documentation before they are then ready for registration.
On Registration the loan is then paid out by the Bank in accordance with the guarantees issued and the Estate Agent then receives the Commission.