The Property Transfer Process Explained
The registration process is quite an intensive process with normally 3 different attorneys involved, namely, the transferring attorney (the seller’s attorney attending to the transfer of the property), the bond attorney (attending to the registration of the new buyer’s bond) and the cancellation attorney (attending to the cancellation of the seller’s bond). The transferring attorney needs to co-ordinate this procedure and ensure that all three attorneys are in sync. As can be imagined there are quite a lot of paperwork involved and the whole transferring process takes approximately 6 to 8 weeks to complete, provided there are no hiccups.
Conveyancer receives deed of sale or offer to purchase from estate agent or privately from a seller.
Conveyancer waits for suspensive conditions (e.g. bond approval, subject to sale) to be met before formally commencing with the transfer process.
Conveyancer requests FICA documentation from seller and purchaser in order to draft the transfer documents.
Conveyancer meets with seller and purchaser to sign the transfer documents.
Seller/agent gives instruction for issuing of compliance certificates, e.g. electrical, plumbing, gas, beetle and electrical fencing compliance certificate (if applicable).
Conveyancer applies for rates clearance figures from municipality.
Transfer duty or VAT (if seller is a VAT vendor) is paid by purchaser directly to conveyancer (if applicable). Conveyancer applies for levy clearance figures from managing agents of sectional title scheme (if applicable).
Conveyancer applies for home owners’ association consent if there is a home owners’ association.
Rate clearance figures received for 120 days (depending on municipality) in respect of advanced rates and services. Transfer duty paid by conveyancer to SARS on behalf of purchaser. Seller and purchaser usually pay pro rata amount of levies based on the date of transfer. Written consent to transfer issued for lodgement by home owners' association if levies of seller are up to date.
Seller makes payment of amount as per advanced rates figures to conveyancer for onward payment to the municipality.
Transfer duty receipt, exemption or VAT receipt issued for lodgement
Levy clearance certificate issued for conveyancer’s file.
Rates clearance certificate issued by municipality (takes approximately 10 - 20 working days once paid, depending on which municipality payment has to be made to).
Conveyancers certificate is lodged with sectional title transfers stating that all monies owning to the relevant body corporate have been paid or provision has been made for payment thereof.
LODGEMENT
Transfer documents, together with rates clearance certificate and transfer duty receipt are lodged at the relevant deeds office, along with the bond cancellation (for seller) and bond registration documents (if applicable).
EXAMINATION OF DEEDS BY DEEDS OFFICE
The documents undergo a 3-level examination process by deeds office examiners to ensure that the documents conform with the applicable legislation. (10 TO 15 WORKING DAYS)
The deeds come up onto preparation for purposes of registration and the conveyancer has five days within which to rectify any minor errors and thereafter hand in for execution to occur the following day.
OR
A major query is raised by the deeds office, necessitating the deeds to be withdrawn from the system, rectified and then relodged.
26 Jul 2018
Author Greyvensteins Attorneys
Author Greyvensteins Attorneys