property transferThe 7 Steps of Property Transfer

Buying and selling property in South Africa has become quite the pastime; however, the process is not so simple and, if not followed correctly, can cause severe delays.

I hope to educate you here on the property transfer process and how here at Le Roux Attorneys, we can make it super seamless.

There are 7 essential steps to property transfer:

 

1. Offer to Purchase is received

When a buyer wants to show intention to purchase a seller’s property, they must fill in and submit an Offer to Purchase. Make sure you send this to your conveyancer for perusal and advice first as this is where the property transfer process begins and you want to do things correctly.

 

2. Deciding on the Purchase Price

The Offer to Purchase shows how the property will be paid for, and it is essential to place a value on the property at this point.  The purchase price can either be paid in cash or financed with the bank or via a bond company.

 

3. Gather the Required Documents for the Property Transfer

There are certain documents needed in order to take the property transfer process further. These are:

  • Bond cancellation figures
  • Rates clearance figures from the local municipality
  • Levy clearance figures from the homeowner’s association or a body corporate
  • Transfer duty receipt or exemption certificate from SARS

 

4. The Signing of the Transfer Documents

Besides the transfer documents needing signing, other various FICA documents must be signed by both parties, including a Power of Attorney document signed by the seller.

 

5. Clearance Certificates

At this point, transfer fees are paid to the attorney, including transfer duty payable to SARS.  Other fees that the seller must pay are any outstanding municipal and levy-clearance fees and ensuring all certificates such as gas compliance, electrical fence, electrical compliance, and others are initiated.

 

6. Lodging in the Deeds Office

When all documents are in order and signed, the attorney lodges in the Deeds Office.

 

7. Registration at the Deeds Office

This part of the property transfer process can take the longest, up to 10 working days from when the documents are lodged with the Deeds Office.  Once all is in order and approved, a new title deed is issued, which confirms the new owner’s details of the property.  Following that, the balance of proceeds are paid to the seller.

If you’re needing assistance with your property transfer process, please book a consultation with Nicola Le Roux at Le Roux Attorneys. And, to keep up to date with all we offer, do follow us on social – LinkedIn and Facebook.