The sale of immovable property?

What does the process of selling / buying a property entail?

The process to approval for extending a Sectional Title Unit

Agreement of Sale – a written agreement, in which the Purchaser, the Seller and the immovable property as well as the purchase price are specified, is essential to constitute a binding agreement of sale. A Deed of Sale must be signed by both the Purchaser and the Seller or a person who is authorized by such party in terms of a written Power of Attorney. A verbal contract for the sale of immovable property is unenforceable.

Transfer of the property – on receipt of the Agreement of Sale the conveyancer takes the necessary steps to effect registration of transfer of the immovable property in the relevant Deeds Office. The Purchaser and the Seller will be required to call at the offices of the Conveyancer to sign the transfer documents which have been prepared by the Conveyancer and which will enable him to do the transfer

The Conveyancer requires the following:

  • From the Seller
  • Particulars in respect of marital and solvency status
  • Particulars of bond holder
  • Valid electrical wiring certificate (ECC)
  • Rates and/or Levy Account Details
  • FICA documents – see section on FICA for more information
  • Income tax reference number
  • From the Purchaser
  • Particulars in respect of marital and solvency status
  • Particulars concerning the identity of the attorney transferring the Purchasers Property (if applicable)
  • Particulars of the bond granted (if any) and the attorney attending to the bond registration
  • FICA documents – see section on FICA for more information
  • Income tax reference number
  • From the existing Bondholder
  • Cancellation figures and Title Deed
  • Particulars of 2nd or further bond holders
  • Partculars of attorneys attending to the bond cancellation
  • From the Purchaser’s transferring attorney in the event of a “subject to” offer
  • Confirmation that the transaction is proceeding
  • Particulars of estimated amount available
  • Feasibility of linking matters in the Deeds Office for simultaneous registration
  • Gaurantees
  • From the Estate Agent
  • Confirmation of payment of the deposit, the bond grant and relevant information.
  • Upon receipt of the documents referred to above
  • Transfer and / or bond documents are drawn
  • Accounts prepared for both Seller and Purchaser
  • Both Seller and Purchaser telephoned to arrange appointment for signature
  • The Purchaser is requested to pay the balance of the purchase price, costs and disbursements.
  • Guarantees are requested from the bond attorney
  • After signature of documents by both Seller and Purchaser and payment made of disbursements by Purchaser
  • Obtain transfer duty receipt from SARS
  • Obtain rates clearance certificate from local government
  • Obtain levy certificate from Body Corporate or Homeowners Association if applicable
  • Forward guarantees plus payment of bond cancellation costs to the existing bondholder’s attorneys
  • After receipt of guarantees
  • After receipt of clearance certificate and transfer duty receipt
  • Liaise with the relevant parties to arrange lodgement in the Deeds Office
  • Transfer is lodged and registered in the Deeds Office
  • After Registration
  • Advise all parties of registration
  • Present guarantees for payment
  • Do final account
  • Upon receipt of payment i.t.o. guarantee presented
  • Finalise the accounts of the Seller and Purchaser
  • Effect payment to parties
  • Upon receipt of documents from Deeds Office
  • Forward Title Deeds to bondholders for safekeeping, or if no bond, arrange with Purchaser to collect documents

Recommended for you

Buying tenanted properties - don’t get caught out
Contractual Matters

Electronic signatures and the virtual commissioning of affidavits[post_view before=""]

In our June newsletter, we looked at an interesting court decision handed down in 2020 by the Eastern Cape Division of the High Court of South Africa, related to the application of electronic signatures to offers to purchase land. Last year, the electronic signing of documents once again came under the spotlight in the case of Firstrand Bank Limited v Jacques Louis Briedenhann. Interestingly, this decision was also handed down by the Eastern Cape Division of the High Court, which appears to be making groundbreaking decisions in this regard.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

The property professional’s checklist for dealmaking[post_view before=""]

The property professional plays a critical role in the process of buying and selling real estate. When ‘making the deal’, they must engage with the seller to collect information and documentation that will be needed throughout the process. At the time of taking the mandate, it is crucial that they clarify certain facts and obtain specific information and documentation in order to pre-empt any issues that may arise, thus saving time.

Read More
Buying tenanted properties - don’t get caught out
Contractual Matters

Electronic signatures and OTPs[post_view before=""]

As we live in an online world, and because of the recent pandemic, electronic signatures are becoming more commonplace – and an increasing number of buyers and sellers are asking to sign their OTPs electronically.

Read More
Minors and immovable property
Contractual Matters

When ownership of immovable property is vested in a company[post_view before=""]

There are instances where ownership of land is vested in a company. Typically, a company is registered, usually with one or two directors, and such company then takes transfer of the immovable property. The land is then held in the name of the legal entity (being the company), with the individuals or directors who intend to stay there holding shares in the company.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

An ethical approach to fee discounts[post_view before=""]

Legal fees are regulated by tariff guidelines, which are issued by the Rules Board in terms of the Legal Practice Act. Although these tariffs are guidelines, they are typically followed in the conveyancing industry. As a result, if fees are ever queried, they can usually be backed up by the regulations issued in the Government Gazette from time to time.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

The sale of immovable property?

What does the process of selling / buying a property entail?

The process to approval for extending a Sectional Title Unit

Agreement of Sale – a written agreement, in which the Purchaser, the Seller and the immovable property as well as the purchase price are specified, is essential to constitute a binding agreement of sale. A Deed of Sale must be signed by both the Purchaser and the Seller or a person who is authorized by such party in terms of a written Power of Attorney. A verbal contract for the sale of immovable property is unenforceable.

Transfer of the property – on receipt of the Agreement of Sale the conveyancer takes the necessary steps to effect registration of transfer of the immovable property in the relevant Deeds Office. The Purchaser and the Seller will be required to call at the offices of the Conveyancer to sign the transfer documents which have been prepared by the Conveyancer and which will enable him to do the transfer

The Conveyancer requires the following:

  • From the Seller
  • Particulars in respect of marital and solvency status
  • Particulars of bond holder
  • Valid electrical wiring certificate (ECC)
  • Rates and/or Levy Account Details
  • FICA documents – see section on FICA for more information
  • Income tax reference number
  • From the Purchaser
  • Particulars in respect of marital and solvency status
  • Particulars concerning the identity of the attorney transferring the Purchasers Property (if applicable)
  • Particulars of the bond granted (if any) and the attorney attending to the bond registration
  • FICA documents – see section on FICA for more information
  • Income tax reference number
  • From the existing Bondholder
  • Cancellation figures and Title Deed
  • Particulars of 2nd or further bond holders
  • Partculars of attorneys attending to the bond cancellation
  • From the Purchaser’s transferring attorney in the event of a “subject to” offer
  • Confirmation that the transaction is proceeding
  • Particulars of estimated amount available
  • Feasibility of linking matters in the Deeds Office for simultaneous registration
  • Gaurantees
  • From the Estate Agent
  • Confirmation of payment of the deposit, the bond grant and relevant information.
  • Upon receipt of the documents referred to above
  • Transfer and / or bond documents are drawn
  • Accounts prepared for both Seller and Purchaser
  • Both Seller and Purchaser telephoned to arrange appointment for signature
  • The Purchaser is requested to pay the balance of the purchase price, costs and disbursements.
  • Guarantees are requested from the bond attorney
  • After signature of documents by both Seller and Purchaser and payment made of disbursements by Purchaser
  • Obtain transfer duty receipt from SARS
  • Obtain rates clearance certificate from local government
  • Obtain levy certificate from Body Corporate or Homeowners Association if applicable
  • Forward guarantees plus payment of bond cancellation costs to the existing bondholder’s attorneys
  • After receipt of guarantees
  • After receipt of clearance certificate and transfer duty receipt
  • Liaise with the relevant parties to arrange lodgement in the Deeds Office
  • Transfer is lodged and registered in the Deeds Office
  • After Registration
  • Advise all parties of registration
  • Present guarantees for payment
  • Do final account
  • Upon receipt of payment i.t.o. guarantee presented
  • Finalise the accounts of the Seller and Purchaser
  • Effect payment to parties
  • Upon receipt of documents from Deeds Office
  • Forward Title Deeds to bondholders for safekeeping, or if no bond, arrange with Purchaser to collect documents