Buying a property is an exciting milestone, and we are delighted to assist you with the transfer of ownership. While the transfer process involves several legal and administrative steps, our role is to manage the process on behalf of the seller and purchaser and keep you informed every step of the way.
Below is an overview of what you can expect during the transfer process.
What is the Property Transfer Process?
Property transfer is the legal process of changing ownership of a property from the seller to the purchaser. This is achieved by lodging the required documentation with the Deeds Office, where the transfer is examined and ultimately registered.
Before registration can take place, several legal requirements must be fulfilled.
Documents Required for Transfer
To register the transfer of ownership, the following documents are generally required:
- The original Power of Attorney signed by the seller.
- The original title deed of the property (if there is a bond registered over the property, the original title deed is in the Bank’s possession).
- A municipal Rates Clearance Certificate.
- A South African Revenue Service (SARS) Transfer Duty Receipt or VAT Clearance Certificate, where applicable.
- Bond documentation, if the property is going to be financed by way of a bond.
Obtaining these documents involves several steps, which we coordinate on your behalf.
Step 1: Payment of the Purchase Price
If you are purchasing the property without a home loan, the purchase price must be secured before registration.
This is usually done by either:
- Depositing the purchase price into Curran Attorneys trust account; or
- Providing a bank guarantee in our favour, issued by a financial institution.
Your bank can assist you with arranging a guarantee if required.
If you are purchasing the property by way of a home loan, the bank via their attorneys shall provide the necessary bank guarantee(s).
Step 2: Signature of transfer documents
Once the purchase price is secured, next step involves Curran Attorneys drafting the transfer documents for signature by the Seller and Purchaser.
Our conveyancer personally meets with the seller and purchaser for signature of the transfer documents and FICA onboarding documents.
Step 3: Cancellation of the Seller’s Existing Bond
If the property is currently subject to a mortgage bond, that bond must be cancelled.
The seller’s bank appoints a bond cancellation attorney to attend to this process. The seller is responsible for settling the outstanding bond amount and any applicable cancellation costs.
The bank typically issues cancellation figures within 3 to 5 working days.
Step 4: Obtaining the Municipal Rates Clearance Certificate
Before transfer can proceed, the municipality must issue a Rates Clearance Certificate.
To obtain this certificate, we submit an application to the relevant municipality. The municipality will calculate the amounts required to settle municipal rates and service charges, usually collecting approximately three months’ charges in advance from the seller.
Once the transfer has been registered, the municipality updates its records to reflect the new ownership. The Purchaser will become responsible for municipal rates and services from the date of registration, although it may take several weeks for the municipality’s records to be updated.
Step 5: SARS Transfer Duty
Once both the purchaser and seller have signed the transfer documents, we submit the required documentation electronically to the South African Revenue Service (SARS).
SARS reviews the transaction before issuing a Transfer Duty Receipt (or VAT Clearance Certificate where applicable).
If transfer duty is payable, payment must be made before SARS will issue the necessary clearance.
Current processing times are typically between 10 and 21 working days, although these timeframes may vary.
Step 6: Compliance Certificates
There are a number of mandatory compliance certificates which the seller is responsible for arranging and paying for repairs associated with the issuing of a compliance certificate.
These certificates may include:
- Electrical compliance certificate
- Water compliance certificate (if applicable)
- Beetle certificate
- Gas compliance certificate (if applicable)
- Electric fence certificate (if applicable)
Step 7: Registration of Your Mortgage Bond
If you are financing your purchase through a home loan, your bank will appoint a bond registration attorney from its approved panel.
You will sign the bond documentation with that attorney and will be responsible for the bond registration costs.
At this stage, there may be three different firms of attorneys involved:
- The transferring attorneys (Curran Attorneys);
- The bond cancellation attorneys acting for the seller’s bank; and
- The bond registration attorneys acting for your bank.
We coordinate the transfer process with all parties to ensure the transaction proceeds as efficiently as possible.
Step 8: Lodgement at the Deeds Office
Once all the required documentation, certificates, and financial guarantees have been received, the transfer documents are lodged at the Deeds Office together with the bond registration and bond cancellation documents (where applicable).
The Deeds Office then examines the documents to ensure that all legal requirements have been met.
Step 9: Registration of Transfer
After examination by the Deeds Office, the documents are placed on preparation for registration. Registration usually takes place on the following working day.
This is the date on which ownership of the property legally passes from the seller to the purchaser.
Following registration, the title deed is updated and, where applicable, your mortgage bond is simultaneously registered (purchaser’s bond if purchase price funded by a bond).
Step 10: Final Account
After registration takes place, we will prepare and send a final statement of account reflecting any outstanding amounts due or any refunds payable.
We’re Here to Help
We understand that purchasing a property can feel overwhelming, particularly if it is your first property transaction. Our experienced conveyancing team manages every stage of the transfer process and will keep you informed throughout.
If you have any questions about property transfers or require assistance with a property transfer, you are welcome to contact Ashley Curran (Attorney and Conveyancer) on (021) 671 9322 or ashley@curranattorneys.co.za
Recent Comments