The conveyancing process can sometimes leave one feeling overwhelmed. We have therefore tried to simplify the various steps below to give all the parties a broad overview of what could be expected during the transfer period.
Concluding the Agreement:
The Purchaser and Seller conclude and sign a Sale Agreement.
The Purchaser applies for a mortgage bond and this will need to be approved by a Bank.
If the Purchaser is going to pay in cash for the property, the necessary guarantees shall have to be obtained.
Instructing all Parties involved in the transaction:
The Conveyancing Attorney is instructed to attend to the transfer of the property and an attorney shall also be instructed to attend to the registration of the a mortgage bond if applicable.
The Original Title Deed will be requested as the transaction cannot proceed without it or an additional process will have to be followed if the original Title Deed is missing.
Cancellation figures for the cancellation of any existing bond (if applicable) is requested.
Rates Clearance figures are requested from the municipality (the Seller is liable for these costs).
If dealing with a sectional title unit, levy clearance figures and a consent issued by the Body Corporate to transfer the unit must be requested (the Seller is liable for these costs).
Suspensive Conditions:
The transaction can only proceed once all suspensive conditions in the Sale Agreement have been fulfilled.
Signatures and Payments:
Transfer and Bond documents are drafted by the relevant attorneys once all suspensive conditions have been fulfilled.
The Purchaser and Seller each sign their respective transfer documents.
The Purchaser signs the Bond Registration documents.
The Seller pays the rates clearance amount provided by the relevant municipality and if the property is a sectional title unit, the levy clearance amount provided by the body corporate will also be paid by the seller.
The Conveyancing Attorney applies for the transfer duty receipt from SARS and if Transfer Duty is payable, the Purchaser must pay this to the Conveyancing Attorney in order for the amount required to be paid over to SARS.
Compliance Certificates:
The Seller is required to provide compliance certificates for electrical, plumbing (if applicable), gas (if applicable), beetle (if applicable) and electrical fencing (if applicable) depending on what the deed of sale and current legislation requires.
Guarantees:
The Conveyancing Attorney requests the guarantees from the Purchaser or the attorney attending to the bond registration on behalf of the Purchaser to secure the purchase price.
Lodgement:
When all documents are signed, costs are paid and certificates obtained, the documents are prepared for lodgement in the relevant Deeds Office.
The documents are examined in the Deeds Office and once all the documents are approved via the process of that particular Deeds Office, the transfer shall come up for registration and can thereafter register.
Registration:
Once the transfer is ready to be registered, the Conveyancer appears at the Deeds Office to register the Deeds whereafter ownership of the property immediately passes from the Seller to the Purchaser.
The Mortgage Bond is registered simultaneously with the transfer of the property.
The Seller’s existing Bond (where applicable) is cancelled simultaneously with the transfer of the property.
The respective guarantees pay out as soon as registration is confirmed and the proceeds of the sale is paid to the Seller.
The Estate Agency is paid its commission.
The new owner takes occupation of the property.