What to Expect
The property conveyancing process seems daunting and complicated, particularly to those new to home buying or selling. We've simplified the process for you below so that you'll understand exactly what's happenning at each stage of your transfer, and what's coming next! If you have any questions, please don't hesitate to contact us and we'll gladly talk you through it.
The Exciting Part
Facts & Figures
- The relevant Conveyancing Attorneys are instructed to carry out the transfer and bond registration.
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The Title Deedsand Cancellation Figures
Title Deeds
The legal document which provides proof of registration and states ownership of a property. The Title Deed is filed at the Deeds Office and contains details of the property etc.
Cancellation Figures
The amount still owing on the Seller’s bond account that needs to be paid to the Seller’s bank to cancel the bond.
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The Rates Clearance Figuresand Valuation Certificates
Rates Clearance Figures
The amount the Seller owes to the municipality for rates and services.
- Levy Figures*
Sale Conditions
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The deal only proceeds when the suspensive conditions in the Sale Agreementare met (such as the sale of an existing property).
Sale Agreement
A legally binding document, signed by the Buyer and Seller, stating the agreement of the sale and its conditions, as dictated by SA legislation. Also referred to as an Offer To Purchase (OTP).
Signatures & Payments
- Once all conditions have been met, the transfer and bond documents are drafted by the relevant Attorneys.
- The Buyer & Seller sign the respective transfer documents.
- The Buyer signs the bond documents.*
The Attorneys collect:
- All relevant Transfer cost are paid by the Buyer.
- The Seller pays their rates, including advance rates if required.*
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The Transfer attorneyapplies for a transfer duty
Transfer attorney
Transfers the property from one party to another.
receipt from SARS, a Rates Clearance CertificateTransfer duty
Transfer Duty is acquisition tax paid by the purchaser to enable the transfer of a property into their name.
and a Levy Certificate* and makes the necessary payments.Rates Clearance Certificate
The Seller is responsible for settling all rates and municipal debt on a property, including a projected amount up until a future date (usually 3 - 4 months). Once settled, a certificate confirming payment has been made is generated by the relevant municipality.
Compliance Certificates
The Seller is now required to provide these compliance certificates:
- Electrical, Plumbing*, Beetle*, Gas*, Electric Fence*
Guarantees
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The Attorneys provide Guaranteesfrom the Buyer's Bank for the purchase price, or the balance of the purchase price if a deposit is being paid up front.
Guarantees
The Buyer’s bank will issue guarantees to the Seller’s bank stating that the outstanding amount due on the Seller’s bond will be paid upon registration of the property in the Buyer’s name.
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The Seller's existing bondon the property is prepared to be cancelled.
Bond
When the bank lends money to a buyer to purchase a property, a bond document is lodged and noted against the title of a property in the deeds office to provide the bank security.
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The Attorneys ensure FICA Complianceas a protective measure against fraud.
FICA Compliance
The Financial Intelligence Center Act compels accountable institutions, such as banks and attorneys, to physically identify and verify the identities and existence of their clients as a preventative measure against fraud.
Lodgement
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When all documents are signed, costs are paid certificates obtained, the documents are prepared for lodgementin the Deeds Office.
Lodgement
When all documents are prepared and costs paid, the transfer-, bond- and bond cancellation documents are lodged at Deeds Office for simultaneous examining and registration.
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The documents are examined in the Deeds Office(+10 working days).
Deeds Office
The Deeds Office is responsible for the registration, recording, management and maintenance of the property register of South Africa.
- After 7-10 working days, the Attorneys will be advised that the matter is "Up for Registration" and have 5 working days to finalise anything outstanding.
Registration and Proceeds
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The Conveyancers appear at the Deeds Officeto register Deeds.
Deeds Office
AThe Deeds Office is responsible for the registration, recording, management and maintenance of the property register of South Africa.
- Ownership passes from the Seller to the Buyer.
- The Seller is paid out the net proceeds.
- The Estate Agent is paid their commission.
The Finale
- The Buyer and Seller have long-since forgotten the process and have settled into their new lifestyles.
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After approximately 3 months, the original Title Deedand Bond Documents are delivered back to the Attorneys by the Deeds Office
Title Deed
The legal document which provides proof of registration and states ownership of a property. The Title Deed is filed at the Deeds Office and contains details of the property etc.
and a Levy Certificate* and makes the necessary payments.Deeds Office.
The Deeds Office is responsible for the registration, recording, management and maintenance of the property register of South Africa.
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The original Title Deedis delivered to the Bank (if the property is bonded) or to the Owner (if unbound). A copy of these documents is normally sent to the Buyer & Seller by the Attorneys.
Title Deed
The legal document which provides proof of registration and states ownership of a property. The Title Deed is filed at the Deeds Office and contains details of the property etc.
* If applicable
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