When it comes to buying or selling a property in South Africa, there is a series of steps that must be followed in order to transfer the ownership from the seller to the buyer.
In this guide, we will walk you through the property transfer process, so that you can have a better understanding of what to expect.
Step 1: Conclusion of the Offer to Purchase
The first step in the transfer process is the conclusion of an offer to purchase, which sets out the terms and conditions of the sale.
Once all parties have signed the offer to purchase, it becomes the agreement of sale.
Step 2: Appointment of Transferring Attorney
The transferring attorney appointed in the agreement of sale will lead the transaction by requesting certain information from both the purchaser and the seller to enable them to draft the necessary documents for signature.
In addition, the transferring attorney is responsible for obtaining certain other documents, including a municipal rates clearing certificate, a body corporate or homeowners association clearing certificate, and a transfer duty receipt, just to name a few.
Step 3: Bond Registration Attorney
In most instances, you will come across two further sets of attorneys: the bond registration attorney and the bond cancellation attorney. The purchase price of your property can be secured by cash payment, but most often the case might be, the purchase price or at least a portion thereof is secured by obtaining a loan from the bank.
The bank in exchange for lending that money will require a mortgage bond to be registered in its favour as its security and they appoint one registration attorney on their panel to attend to this.
The bond registration attorneys are then in a position to furnish the transferring attorney with the necessary guarantees confirming that all finance is in place and secured for payout on the date of registration.
Step 4: Bond Cancellation Attorney
The other set of attorneys that you will most likely encounter is a bond cancellation attorney. They attend to cancelling the existing owner’s bond that’s currently registered over the property.
The bank in whose favour that bond is currently registered will only consent to its cancellation, provided that the seller has settled their bond accounts or that the necessary guarantees are in place for that settlement.
Step 5: Lodge Documents at the Deeds Office
Once all the conveyancing attorneys involved are ready, they will simultaneously lodge their documents at the deeds office. The first stage in this deeds office process is referred to as lodgement.
Thereafter, the deeds go through three levels of examination, and depending on the deed’s office, registration can be expected within eight to ten working days. It’s at this point that a new title deed will be issued confirming that the property is now registered into the new owner’s name.
It’s important to have a qualified and experienced conveyancing attorney to guide you through the process and to ensure that all necessary documents are in order. If you have any questions about the property transfer process, don’t hesitate to reach out to your attorney for guidance, or if you are looking for one, you can search on Property Portal 24.