You have signed an offer to purchase for your dream home, and the bank has approved your loan. The transfer of your newly acquired property is handled by a conveyancer. But what exactly does this transfer process entail?
There are different steps involved in the transfer of a property:
- A conveyancer receives the instruction to transfer the property.
- The conveyancer communicates with the various role-players involved in the transfer process, such as the seller, purchaser, transfer and bond attorneys, municipality, bank, South African Revenue Service (SARS).
- Certain information and documents are required, such as the agreement of sale, deeds office search, existing deed, bond cancellation figures from the bank and so on. The conveyancer should continuously report to the various role-players about the progress being made.
- Drafting and signing: As soon as all the information and documents have been collected, the conveyancer will draft the transfer documents and request the seller and purchaser to sign them. These transfer documents will include a power of attorney and various affidavits.
- Financial arrangements include requesting an advance payment for the conveyancer’s interim account for certain expenses, requesting the bank guarantee, collecting the purchase price or deposit and so on.
- Transfer duty: Obtaining a transfer duty receipt from SARS, confirming that the tax relating to the transfer of the property has been paid by the purchaser.
- Clearance Certificate: Obtaining a clearance certificate from the municipality, confirming that all amounts in respect of property have been paid for the last two years.
- The conveyancer prepares for lodgment (submission) of the deed of transfer and other documents necessary for registration at the deeds office.
- Once the deed of transfer and other documents have been lodged it, takes the deeds office about 7 – 10 working days to examine these documents.
- If the deeds office is satisfied that the requirement for the transfer of property has been met, the deed of property is registered. The conveyancer will notify the various role-players of the registration.
- Once registered, the conveyancer makes the necessary calculations and payments relating to the sale, for example, the estate agent’s commission, purchase price and so on. Having an experienced and expert conveyancer is extremely important to ensure that the transfer of property takes place quickly and efficiently. This article is a general information sheet and should not be used or relied on as legal or other professional advice. Always contact us on firstname.lastname@example.org for specific and detailed advice and quotations.