Below are the steps, made easy, for a successful property transfer and registration in the Deeds Office:
- Once the seller has signed the Offer to Purchase/ Agreement of Sale the purchaser needs to obtain a home loan if it is not a cash sale.
- The seller (and not the estate agent) has the choice to appoint a transfer attorney, who is an attorney that specialises in property law and property transactions. This type of attorney is called a conveyancer. It is always advisable to have your attorney/conveyancer read through the Offer to Purchase/ Agreement of Sale if the sale is through an estate agent or an attorney that is not your appointed conveyancer, to see if your rights are protected, before signing.
- There are usually 3 different attorneys/conveyancers working together on one transaction: the transfer attorney (doing the change of ownership), the bond cancellation attorney (cancelling the seller’s bond, if applicable), the bond attorney (registering the new bond for the purchaser, if applicable). The transfer attorney manages and facilitates the transfer process between the other conveyancers to ensure a timeous and successful registration of transfer.
- The transfer attorney needs to obtain FICA (ID, proof of residence and marital status, income tax number and income tax status) of both parties and then applies for the seller’s bond cancellation figures, if the seller has a bond registered over the property. The bank will then send the original Title Deed to the bond cancellation attorneys, who will in turn send a copy of thereof to the transfer attorney.
- The purchaser must pay the transfer fees and transfer costs, which includes the transfer duty amount payable to SARS (South African Revenue Service).
- Once the transfer documents have been prepared by the transfer attorney, the purchaser and seller are required to sign the documents.
- The transfer attorney requests figures from the municipality and managing agents of the Body Corporate and/ or Home Owners Associations for Sectional Title properties to ensure that all the seller’s rates and taxes and levies are paid up to date as well as to determine any outstanding amounts and the amount of advance rates and levies (if applicable) that is due and payable. The seller is required to pay these amounts that are due and payable to the transfer attorney who makes the payment to the relevant parties on his/her behalf. The clearance certificates and/or consents form part of the documents that are lodged at the Deeds Office for registration of transfer.
- The purchaser must pay the South African Revenue Services (SARS) transfer duty. This is a tax levied on property transfers. This tax is calculated on the purchase price of the property. The transfer attorney will request a transfer duty receipt on SARS e-filing and also make the payment of the transfer duty on behalf of the purchaser.
- Once the transfer attorney has all the required documents, they are lodged in the Deeds Office, together with the new bond and old bond cancellation, if applicable.
- From the date of lodgement in the Deeds Office, it takes about 7- 10 working days for the documents to be examined.
- Should there be no amendments required by the Deeds Office and all the requirements have been met, the transaction is registered. This means that the purchaser is now the new legal owner of the property.
- The new registered Title Deed is delivered shortly after registration of transfer and handed to the bond attorneys for onward transmission to the bank which has registered the new home loan, alternatively, where no home loan was registered, it is handed to the new owner.
At BABS Attorneys we specialise in Property Transfer and other aspects of Property Law, helping our clients to navigate all the legal necessities as clearly, simply, and cost-effectively as possible. Visit our Property Law and Conveyancing page for more, and contact us today.
