Conveyancing Transfer Process

The Conveyancing transfer process usually takes approximately 8 – 12 weeks and the steps are as follows:

Step 1: Agreement, Suspensive Conditions & Transfer Documents

The transfer process begins with a sale agreement. Once the conveyancers receive a copy of the sale agreement, they will contact the parties and request copies of their FICA documentation, the current rates, electricity and water account numbers for the property and payment of the deposit (if applicable). Once suspensive conditions have been fulfilled (bond granted for example), the conveyancers will draft the transfer documents, arrange for signature of the transfer documents, request rates figures from the municipality and request payment of their proforma account, from the purchaser, which will include inter alia the transfer costs and transfer duty.

Step 2: Existing Bonds or Interdicts

The next step in the conveyancing transfer process is if any existing bonds are over the property, it must be cancelled (and interdicts removed) prior to or (usually) simultaneously with registration of transfer of the property to the purchaser. The seller will provide the conveyancers with the name of the bank holding the bond and the bond account number in order for the conveyancers to liaise with the bond bank in respect of settlement of the outstanding bond amount and cancellation of the bond.

Step 3: New Bond (if applicable)

The conveyancers will liaise with the bond attorneys appointed by the bank to attend to the registration of the purchaser’s bond and obtain the necessary guarantees from them. The purchaser will need to sign the bond documents in order for the guarantees to be issued. The purchaser will pay the bank’s attorneys directly for their bond registration fees.

Step 4: Rates Clearance Certificate and Transfer Duty Receipt

Once the purchaser has paid the proforma account, the conveyancers will pay the municipality’s rates figures to the municipality, transfer duty to SARS and if applicable, levies to the body corporate or homeowners’ association. SARS may require two independent estate agent valuations to verify the value of the property being transferred. The conveyancer will only know on submission of the transfer duty application whether the valuations will be required.

Step 5: Compliance Certificates (Electrical, Pest, Gas & Electric Fence as applicable)

The conveyancers must receive the necessary compliance certificates applicable to the property. Bond attorneys typically require certified copies of the certificates prior to lodgment of the transaction in the Deeds Office. It is vital that these certificates are provided to the conveyancers timeously.

Step 6: Lodgment in the Deeds Office

When all attorneys involved are ready to proceed they collaborate and lodge their respective transactions simultaneously in the Deeds Office. The examination procedure in the Deeds Office typically takes eight to ten working days if there are no backlogs or queries. If the Deeds Office queries or rejects a document then the attorney responsible will need to answer the query or rectify the error in order for all transactions to proceed.

Step 7: Registration of Transfer

On registration of transfer the purchaser becomes the official owner of the property. The conveyancers finalise the seller’s and purchaser’s accounts and once payment of the guarantee (if applicable) reflects in their trust account they process the necessary payments. The seller usually receives payment of the net proceeds of the sale of the property approximately 48 hours from date of registration of transfer, depending on banks, weekends and public holidays.  The title deed will be microfilmed by the Deeds Office and returned to the conveyancers for onward transmission to the purchaser (or the new bondholder bank if a bond was required to finance the transaction).

Please contact us if you require assistance in respect of a sale agreement or the transfer of a property. Our telephone number is (031) 266 2530 or click here to complete our online enquiry form, one of our team will get right back to you.