Homebuyers often feel that conveyancing process is challenging as well as complicated especially when you are buying your dream home for the first time. So, let us understand what transpires during the transfer proceedings by simplifying the process step by step.
The procedure to transfer the right in immovable property takes approximately six to eight weeks from date of receipt of the instruction to date of execution at the deeds office. Understanding the conveyancing process and ensuring that you have all the necessary documentation ready will ensure that a smooth transfer of the property can take place. Below is a detailed explanation of the conveyancing procedure.
Sale agreement is signed by the seller and the purchaser with all the conditions of the titular property and later send to the transferring attorney – appointed by the seller either by the estate agent or the private seller.
A formal acknowledgment of the sale agreement is sent by the transferring attorney to all the parties involved requesting FICA documents of both the parties, deposit payment as mentioned in the sale agreement, or stating the date by which the purchaser providing a proof of the bond that has been granted to him as mentioned in the sale agreement, title deed or when there is currently a bond over the property. The account number for requesting bond cancellation figures from the current bondholder which is required for the cancellation of the current bond, rate clearance figures from the municipality of the area where the property is located to obtain the rate clearance certificate and levy clearance from the managing agent wherein it is sectional title property and to obtaining levy clearance certificate.
The deposit amount is to be transferred to the attorney’s trust account by the purchaser and to be invested on his behalf and the interest will be transferred to his account. If the sale agreement is in concern with the purchaser to obtain the bond, then they must provide a proof to the transferring attorney of granting the bond from the acceptable bank in South Africa and the amount has been approved of. The registration attorneys will attend for the registration of the bonds on behalf of the holder and will give the amount available for guarantees and request for the same to cancel the existing bond over the property. Bond cancellation attorneys are to be appointed by the current bond holders for cancellation process and they will be sending a copy of title deed from the bond holder with the cancellation fees to the attorneys and these transferring attorneys will send this cancellation figures to bond attorneys for issuing the guarantee to cancel the current bond over the property.
The transfer & bond documents are drafted, and appointments are made with seller and or purchaser respectively for signing the documents with the pro forma statement for the transfer of fees and registration fees are given to the purchaser to be paid at earliest.
Once the pro forma transfer cost is paid and all transfer documents are signed by the purchaser transferring attorneys will rate & levy clearance figures and apply for duty receipt from South Africa Revenue Service and the compliance certificate is to be provided by the agent or seller to the transferring attorney with the purchaser paying the remaining balance price if not covered by guarantees of the bond registration attorneys.
Original guarantees will be provided by the bond registration attorneys to transferring attorneys that covers the purchase price and will later send it to bond cancellation attorney to cover the cancellation charges or will pay the cancellation costs or provide an undertaking to pay the cancellation costs on the day of registration. It is mandatory to comply with all the sale conditions at this stage.
When the transferring, bond cancellation, and bond registration attorneys are ready to process with the transaction they will arrange simultaneous lodgement of transfer, bond cancellation, and bond registration deeds at the deed office area where the property is located.
Once deeds are lodged at the Deeds Office the deeds will take approximately 10 to 15 days from date of lodgement to date of execution. The period it takes to register a deed is dependant on the work load of the examiners at the Deeds Office at the time the deeds are lodged as well as the complexity of the matter. Below is a detailed breakdown of the path deeds travel in the deeds office from date of lodgement to date of execution.
On the day of deeds submission personal printouts of the seller, purchaser, and the property is made at the Deeds Office to check whether there are any restrictions or court orders against the property and later sorted for the distribution to various examiners at the office.
Level 1 will be examination of the deeds by the junior examiner, next would-be level 2 by the senior examiner and the last will be level 3 by the monitor and this process lasts around 7 to 8 working days provided there are no delays.
Preparation includes either the deeds are passed and placed on preparation day before registration and all the attorneys to confirm whether they are ready to proceed or if the deed gets rejected means the deeds will delivered back, as the office is not satisfied, and it requires correction and relodging and once again start with the entire process.
All the conveyancers who are the attorneys must appear the Deeds Office for registration and the purchaser becomes the new owner of the said property and the existing bonds of the seller is cancelled with the simultaneous registration of the bonds being purchased by the purchaser. Later the bank will pay according to the guarantees issued by the attorneys and investment account will be closed.
A final statement of accounts is been drawn by the transferring attorney for seller and purchaser and the purchase price after deducting the bond cancellation figure which includes received from the cancellation attorney, cancellation costs of the attorneys, estate agent commission if applicable, costing of compliance certificates, pro rata shares of the rate clearance figure, levy clearance figure if sectional title property, etc must be paid to the seller and credit balance if any then to the purchaser including interest earned on transfer duty payable, invested deposit deducting transfer cost, rate clearance certificate fee, pro rata share of the rates and taxes, levy clearance figure for sectional titular property will be paid by the purchaser. The new owner then takes the occupation of the property.
Original title deeds and bond documents will be delivered but the office to transferring and bond registration attorneys after approximately 3 months depending on the delays while the data is captured by the deed’s office.
Original title deeds are being delivered to the purchaser when the bonds are registered over the property then deeds are delivered to the bond holder for safekeeping.
Office 1, The Powder Mill, 5 Sunrise Circle, Ndabeni, Cape Town.
+27 21 813 9222