Transfer Process of Immovable Property
1. Purchasing a property
Purchaser and seller sign offer to purchase. Purchaser applies for a loan (bond) at a financial institution. Transferring Attorney instructed to attend to transfer of property. Transferring Attorney requests cancellation figures for the Seller’s bond. Request Rates / Levy clearance figures from the Local Municipality / Managing Agent.
2. Bond approval
Bank approves bond and send electronic instruction to Bond Attorney to attend to the registration of the bond. Bond attorney advises Transferring Attorney of amount available for guarantees.
3. Document Drafted
Title deeds obtained from holder and receives cancellation figures. Transfer documents drafted. Transferring Attorney advises Bond Attorney of guarantee requirements and provides draft deed of transfer. Bond documents drafted.
4. Transfer Documents Signed
Transferring Attorney request Purchaser and the Seller to sign the transfer documents. The Purchaser pays the transfer costs and the Transferring Attorney then pays the rates, taxes, and the transfer duty.
5. Bond Documents Signed
The Purchaser signs the bond documentation and pays costs. Bond Attorney prepares and issues the necessary guarantees.
6. Guarantees Received
Transferring Attorney receives guarantees and forwards the required guarantee to the Cancellation Attorney.
7. Supporting Documentation
Transferring Attorney obtains transfer duty/VAT/exemption receipt from SARS. Transferring Attorney obtains clearance certificate from local municipality (and Home Owners Association if applicable). Obtain Electrical certificate of compliance from Seller.
8. Documents Prepared for Lodgement
Once all documentation has been signed and costs paid, the transfer, new bond and bond cancellation documents are prepared by the respective attorneys for lodgement in the Deeds Office.
9. Deeds Office
All documents are lodged simultaneously in Deeds Office by arrangement with all attorneys concerned. The Deeds Office takes approximately 2-3 weeks to process the documents before they are ready for registration.
10. Registration
Transfer, new bond and bond cancellation registered simultaneously. Financial institution pays out guarantees the day after registration. Sales proceeds are distributed.
11. Buyer Takes Ownership of Property