Kindly note that the average period for the transfer process from acceptance of the offer to registration takes approximately 3 months, depending on the terms and conditions on the sale agreement.
No transfer can be lodged in the Deeds Office until all the finances are in order and checked. This is one of the primary responsibilities of the transferring attorney.
Please do not hesitate to contact us if you have any queries.
- Instruction received
- Acknowledgements sent to all the parties
- Request FICA documents (ID document, marriage certificate, ANC contract, Income tax number, Proof of residential address)
- Request payment of deposit (if applicable)
- Request title deed and bond cancellation figures on the Sellers existing bond. Please note the bond account will be placed on hold once cancellation figures are issued. (The bond cancellation figure is the amount which the exiting bondholder requires for guarantee purposes, prior to the bond being cancelled)
- Request rates clearance figures from the Local Authority – No transfer can be effected until the Registrar of Deeds is satisfied that the rates and taxes have been paid up to date.
- Follow up on the outstanding figures/documents or payments as in Step 1
- Obtain confirmation from the Purchaser regarding the bond approval (financial institution and the details of the bond registration attorneys)
- Once the bond is granted and the bond attorneys received the instruction, guarantees are requested from the bond registration attorneys to cancel the existing bond over the property
- Transfer documents are drafted and the Seller and Purchaser is called upon to attend on the signing of the transfer documents
- The bond registration attorneys will call upon the Purchaser to sign the bond documents and pay the bond registration costs
- The Purchaser is required to pay the transfer costs and any other costs that may be due in respect of the transaction.
- Should a balance purchase price be payable, payment will be requested and is payable by the guarantee due date on the sale agreement
- The Seller is required to furnish the Electrical Compliance Certificate for the property
- Upon receipt of the bank guarantees, the guarantee to cancel the existing bond is delivered to the bond cancellation attorneys to obtain their consent for the bond cancellation from the relevant bank
- Transfer duty is paid to the Receiver of Revenue, which may take 7 – 10 working days to be issued
- Payment is made to the Local Authority for the rates clearance figures, which is charged 4 months in advance
- Levy clearance figures is requested from the Homeowners Association or Body Corporate (if applicable)
- Once the transfer duty receipt and rates clearance certificate have been obtained, arrangements are made with the attorneys attending to the registration of the Purchaser’s bond and the attorneys attending to the cancellation of the Seller’s existing bond cancellation to have the their documents simultaneously lodged in the Deeds Office.
- The documents are examined by the Deeds Office (which takes approximately 10 working days) after which the documents will reach the final stage in the Deeds Office, namely Preparation, when all the attorneys involved as mentioned above, is called upon to sign off their documents for registration
- Upon registration of the transfer in the Deeds Office, the Purchaser becomes the registered owner of the property.
- The bank guarantees are presented for payment at the relevant financial institution and payment effected to the transferring attorneys Trust Account.
- All the parties are advised of registration and the transferring attorneys draw final statements of account for the Seller and Purchaser and proceeds are paid to the Seller (this normally occurs within 2 working days after registration)
- The Deeds Office releases the original documents after numbering, data capturing and scanning of the deeds. Upon receipt of the original title deed, the deed will be delivered to the bond registration attorneys for onward transmission to the bondholder or if there is no bond registered, the original deed will be handed to the new owner. This stage of the process may take up to 3 – 6 months.
Reasons for possible delays
- Issues on the Sellers municipal account, causing a delay in obtaining rates clearance figures;
- Failure by either party to sign the transfer documents on request;
- Failure by the buyer to sign the mortgage bond documents with the bond attorneys on request;
- Delay by the bank to provide the bond attorneys with the required proceed for lodgement and registration;
- Failure by the buyer to make payment of the deposit (if required);
- Failure by the buyer to make payment of the bond and transfer costs.
- In order for the purchase price to be secured, most buyers rely on finance from a financial institution.
- The buyer will have to apply for finance either directly at the bank or through a recommended bond originator.
- The buyers bond will be depended on the buyer’s credit track record with the credit bureaus and the buyer’s income.
- The financial institutions might not approve the amount applied for by the buyer, and the buyer will then have to pay a deposit to secure the balance purchase price.
- The buyers bond will first be granted in principle (on the buyers credit affordability), where after the bank will do valuation of the property to determine if the property has value.
- Once valuation has been confirmed the final grant will be sent to the purchaser for acceptance.
- The bank will instruct bond registration attorneys once the final grant has been accepted by the buyer.
- From this point on the transfer and bond attorneys will make contact for the matter to proceed.
- The buyer will be required to sign bond registration documents with the bond attorneys in order for the guarantees to be issued to formally secure the purchase price.
Bond cancellation process
Your mortgage bond will be cancelled when either you have paid up the full mortgage or when selling your property. The following will have to be done when selling your property in order for the mortgage bond to be cancelled:-
- You need to give the bank a written request to cancel your home loan. The bank will require that you give a 90 Day (3 month) early Settlement Notice. If you do not comply with this notice period, you need to pay a finance charge (penalty interest).
- The finance charge (penalty interest) is an amount equivalent to three months instalments.
- On receipt of the cancellation figures from the financial institution the transferring attorney will start looking at the finances and determine if there are any penalties on the bond cancellation.
- The financial institution will appoint a firm on their firm of panels to attend to the bond cancellation simultaneously with the transferring attorneys.
- The existing bond has to be maintained during the transfer process to prevent any additional penalties and interest charges.
- On registration the existing bond will be settled with interest in advance to cover any shortfall. Any amount paid in excess will be refunded to the client within 48 – 72 hours.
The cancellation figures issued to the cancellation attorneys will include the following amounts:-
- The month-end balance prior to cancellation figures being issued;
- 90 Days interest (if applicable);
- The homeowner’s insurance premiums that would have been debited to the bond account in the following 6 months; (This is done to ensure that the property is insured until transfer takes place)
- The credit life assurance premiums that would have been debited to the account in the following 6 months. (This is done to ensure your life remains assured until transfer takes place)
- All the legal costs, interest and/or early settlement charges.
Transfer & Bond Registration Costs
Other costs to be aware of
- Estate agent’s commission;
- Municipal rates clearance figures & related costs;
- Body corporate/Home owners levy clearance;
- Bond cancellation figures;
- Electrical compliance certificate;
- Gas compliance certificate;
- Electrical fence compliance certificate;
Who is liable for which costs:-
Penalty Bond Interest
3 Months written notice to be given to the bank, then no
Bond Cancellation Fee
If property is bonded & even if it has a nil balance.
Rates & Services
Any arrears, currnet amounts owing and a 120 day advance
Conveyancer’s Certificate regarding Title Restrictions
If Purchaser intends subdividing or renovating for example.
Owing to the body corporate or HOA.
If registering a bond.
Electrical, gas & electric fence.
If purchaser moves in before transfer.
Always try and provide for a figure in the Offer to Purchaser
Certified Copy of Title Deed
If original misplaced costs is ±R1 000.
Agreed to in the Contract.
Estate Late Transfer
We understand that losing a loved one is a very difficult, and then to try and deal with all the assets can become cumbersome. When it comes to immovable property in an Estate, it is first important to make sure of the following:-
- Did the deceased leave a Last Will & Testament, and does the document deal with the immovable property?
- Who is the next of kin to inherit the property if there was no Last Will & Testament?
- Who is the Executor of the Estate? (The Executor will have to sign all relevant documents for the transfer)
- Is the property bonded and how will the bond be settled? (The deceased might have life assurance to cover the bond);
- If the property is not bonded, where is the original title deed?
Once the above items are clarified, you can approach our firm to assist you further with the transfer of the property from the Estate.
The property can also be sold from the Estate, should it be the wish of the Executor or if it was so indicated in the Last Will & Testament.
Note that in order for immovable property to be transferred from the Estate, the normal transfer process will have to be followed, as well as the transfer should be approved by the Master of the High Court where the Estate was reported.
OTHER CONVEYANCING SERVICES
- Divorce transfer
- Subdivision of land
- Opening of new Sectional title schemes
- Notarial Bond registrations
- Rectification of Deeds
CONTACT OUR CONVEYANCER
|(011) 318 1921|