TRANSFER OF A FIXED PROPERTY IN RSA
It is very important for every person purchasing immovable property in South Africa to familiarise themselves with the processes involved. For your convenience, the PropertyCare.co.za platform hereby provides this step-by-step general guide to you for free. Kindly note however that this guide should not be used as a basis for action without further professional legal / property advice.
By adhering to the following guidelines:
- Receipt of a property in an undesirable condition
- Unnecessary property costs and
- After-sales disputes
- Property Zoning – Verify the legal zoning / property usage rights allocated
- Property Valuation – Verify the property value to avoid overpaying for the property
- Electrical Compliance Certificate – Ensure that the electrical certificate of compliance is made available to you by the transferring attorney or bank
- Bank Finance – As a buyer, first ensure that you have been pre-approved for the property/home loan
- Payment of Deposit – Ensure that you have enough money saved up to cover the deposit costs.
Generally the transfer process involves at least 4 Documentation Process Stations and professionals, namely:
The process these 4 entities above should follow is outlined below:
- Transfer Documentation – Transferring Attorney
- Bond Cancellation Documentation – Cancellation Attorney
- Bond Registration Documentation – Bond Registration Attorney and
- Lodgement Process Documentation – Deeds Office, SARS, Municipality.
- The Transferring Attorney will request the Rates Clearance Certificate from the local Municipality.
- The Bond Registration Attorney will furnish the Transferring Attorney with the relevant Guarantees.
- The Transferring Attorneys will furnish the Cancellation Attorneys with guarantees to cancel the seller's bond, which is done upon receipt of the relevant Guarantees.
- The Transferring Attorneys will obtain the Title Deed and Cancellation Figures from the seller's bondholder or bank, which they in turn will furnish to the Bond Registering Attorneys.
- The Transferring Attorney will then draft the Transfer Documentation e.g. SARS transfer duty, Rates & Taxes Clearance Certificate.
- The Transferring Attorney will arrange for payment of the Rates and Taxes and Transfer Duty to the Receiver of Revenue and a Transfer Duty Receipt is issued.
- The Bond Registration Attorney will prepare the buyer's Bond Account and Supporting Documentation.
- The Transferring Attorney will prepare the transfer documentation and the Purchaser and Seller will then sign the Supporting Documentation and pay the Bond Registration Costs.
- The Bond Registration Attorney will prepare the relevant Guarantees and send to the Transferring Attorneys, who will prepare the bond documents for lodgement with the Deeds Office.
- The Transferring, Cancellation & Bond Registration Attorneys will then all lodge with Office of the Registrar of Deeds simultaneously.
- The Deeds Office can take anything from 7-14 days to evaluate the submission and advise on the "Preparation (Prep)" status.
- Once the registration process is finalised, the Deeds Office will officially register the property to the new owner.
- The Purchaser & Seller should both check with the local municipality to ensure that the rates and electricity accounts are transferred to the new owner.