The Transfer Process
The Transfer Process
THE SALE AGREEMENT
Buying or Selling property is the biggest financial commitment most of us will
ever undertake.
It is thus very important that the Estate Agent and Conveyancers are chosen carefully.
The Estate Agent will explain the terms of the sale agreement to the parties- who must
ensure that they ask questions and understand all the terms before signing the agreement.
Once the agreement of sale is signed, it is a binding contract between Seller and Purchaser.
WHAT ARE SUSPENSIVE CONDITIONS?
The Sale Agreement must contain "Suspensive conditions". These are conditions
which must be fulfilled before the transfer process can begin. The most common suspensive condition is
the granting of a bond to the Purchaser. A bond is a loan of money to the Purchaser by a
bank to enable him to pay the purchase price of the property, on security of the property
purchased. It records that if the Purchaser fails to make the bond repayments, the bank
will be entitled to sell the property to recover the money it has lent. Another common
suspensive condition is that the agreement is subject to the sale of the purchaser's property.
This happens where the Purchaser is selling his property and needs the funds from the purchase
price of that property to pay for the new property. The Seller in this case must realise that
the transfer of the Purchaser's property will have to be registered before or simultaneously
with the transfer of the Seller's property. The conveyancers will then correspond closely with
and usually obtain an undertaking from the conveyancers who are attending to the transfer of
the Purchaser's property to pay over the proceeds of that sale on registration.
CANCELLATION OF THE EXISTING BOND
If the Seller still owes Money to his bank in respect of his bond, because he borrowed money to buy the property himself, then that bond
will have to be cancelled at the same time as the property is transferred to the Purchaser. The Conveyancer
must obtain the original title deed to the property from the Seller's bank, who will be holding the title deed as security.
The Seller's bank will also let the Conveyancer have the "cancellation figures" ie. The exact amount still owing by the Seller
under his bond. When the property is registered in the name of the Purchaser and the Seller's bond is cancelled, The seller's
Bank will be paid the outstanding amount and the balance of the purchase price will be paid to the Seller. The cost of cancelling
the bond are payable by the Seller and are thus deducted from the purchase price before the Seller receives the balance. The Seller's
bank decides which Conveyancer will attend to the cancellation of the bond. If this is not the same Conveyancer who is attending to the
transfer of the property, then the Transferring Conveyancer must correspond closely with the Cancellation Conveyancer to ensure that the
transfer documents and the cancellations documents are lodged in the Deeds Office together.
Once the suspensive conditions are fulfilled, the Conveyancer will be instructed to proceed with the TRANSFER PROCESS. This involves certain steps.
TRANSER OF THE PROPERTY
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
copies of their Identity documents, marriage certificate, ANC's, divorce order, etc. After receiving these docs & the original Title Deed,
the Conveyancer will prepare the transfer docs & his proforma account.
The Parties will then be called upon to sign the docs and the purchaser will be called upon to pay the Conveyancer's costs.
These costs will include: -
These costs will include: -
- The Conveyancer's fees: these fees are charged in accordance with a tariff issued by the law society.
- Transfer Duty: This is a tax payable to the state on all transfers of immovable property & is calculated as a percentage of the purchase price. No transfer can be registered until the Deeds Office have proof that transfer duty has been paid
- Rates: the purchaser will be liable for rates from the date of registration of the property in his name. Approximately 3 months payment in advance will be required by the Conveyancer. to enable him to obtain rates clearance certificate from the rates department. However on receipt of the rates figures the Seller will be required to effect payment of the amount due and will be refunded the purchasers share in the final statement of account. No transfer can be registered until the Deeds Office has proof that the rates have been paid. If the property is a sectional title unit, then a levy clearance certificate must ALSO be obtained.
- Deeds Office fee: the Deeds Office charge a lodgment fee for all documents lodged for registration.
REGISTRATION OF A NEW MORTGAGE BOND
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
If the Purchaser is obtaining a bond to pay the purchase price this bond will also have to be registered simultaneously
with the registration of the transfer and the cancellation of the Seller's bond. The bank which is granting the bond will
appoint the Conveyancer who is to attend to the registration of the bond. If this is not the same Conveyancer who is attending
to the registration of the property, then the transfer Conveyancer must cooperate closely with the bond Conveyancer to ensure that
the bond and transfer docs are drawn and are lodged at the Deeds Office together If the Bank appoints the same Conveyancer who is
attending to the transfer, then the process is made much simpler and quicker – because the bond and transfer docs will be prepared
and signed at one office. MEUMANN WHITE register bonds for all the major banks. The Conveyancer attending to the transfer will
obtain guarantees from the purchase's bank to ensure that the money being lent to the Purchaser is available on date of registration
of the bond. The various banks have different conditions which must be met before the bond can be registered. These conditions include
the signing of various documents by the Purchaser; obtaining insurance on the building that is erected on the property; obtaining and
ceding life assurance policy, the signing of suretyships etc. The Bank will not allow the bond to be registered until all the
conditions are met and it is thus in the interest of the Purchaser to take all steps necessary to comply with the Banks requirements.
REGISTRATION
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
The transfer, bond & cancellation documents must be lodged in the Deeds Office at the same time to ensure simultaneous registration.
If different conveyancers are attending to the registration of the Purchaser's bond, the cancellation of the Seller's bond and/or the
transfer of the property, then all these conveyancers must collaborate. From date of lodgment, it usually takes 7 days until date of
registration. The parties are notified on the day of registration and the Seller is paid out on the following day. The parties are
furnished with final accounts reflecting the final adjustments between the parties in respect of rates, levies, occupational rent and
other matters.
What is a Conveynancer?
A Conveyancer is a qualified attorney who has passed an extra examination in conveyancing. Only a conveyancer can prepare
and do registrations of an ownership and
bonds. The docs are complicated and the Conveyancer must comply with all the rules
and regulations of the Deeds Office and the Deeds Registries Act. It is thus important that the parties choose a reputable
firm of Conveyancers who work accurately and quickly. MEUMANN WHITE has been conveyancers for 40 years and has an excellent
reputation for accuracy and speed.
A TITLE DEED: This document is also known as a Deed of Transfer and it records your ownership of the property. It contains a description of the property and the details of the owner. The Conveyancer will prepare the new title deed which records the Purchaser as owner of the property. From the date of registration of this document in the Deeds Office, the Purchaser will be the registered owner of the property.
THE DEEDS OFFICE: The function of the Deeds office is to maintain a land registration system in South Africa so as to ensure security of title to owners of immovable property. All property transfers, bond registrations and bond cancellations must be registered in the Deeds Office. There are 8 Deeds Offices in South Africa. All registrations in Kwazulu Natal are recorded in the Deeds Office in Pietermaritzburg.
A TITLE DEED: This document is also known as a Deed of Transfer and it records your ownership of the property. It contains a description of the property and the details of the owner. The Conveyancer will prepare the new title deed which records the Purchaser as owner of the property. From the date of registration of this document in the Deeds Office, the Purchaser will be the registered owner of the property.
THE DEEDS OFFICE: The function of the Deeds office is to maintain a land registration system in South Africa so as to ensure security of title to owners of immovable property. All property transfers, bond registrations and bond cancellations must be registered in the Deeds Office. There are 8 Deeds Offices in South Africa. All registrations in Kwazulu Natal are recorded in the Deeds Office in Pietermaritzburg.
The Transfer Process
THE SALE AGREEMENT
Buying or Selling property is the biggest financial commitment most of us will
ever undertake.
It is thus very important that the Estate Agent and Conveyancers are chosen carefully.
The Estate Agent will explain the terms of the sale agreement to the parties- who must
ensure that they ask questions and understand all the terms before signing the agreement.
Once the agreement of sale is signed, it is a binding contract between Seller and Purchaser.
WHAT ARE SUSPENSIVE CONDITIONS?
The Sale Agreement must contain "Suspensive conditions". These are conditions
which must be fulfilled before the transfer process can begin. The most common suspensive condition is
the granting of a bond to the Purchaser. A bond is a loan of money to the Purchaser by a
bank to enable him to pay the purchase price of the property, on security of the property
purchased. It records that if the Purchaser fails to make the bond repayments, the bank
will be entitled to sell the property to recover the money it has lent. Another common
suspensive condition is that the agreement is subject to the sale of the purchaser's property.
This happens where the Purchaser is selling his property and needs the funds from the purchase
price of that property to pay for the new property. The Seller in this case must realise that
the transfer of the Purchaser's property will have to be registered before or simultaneously
with the transfer of the Seller's property. The conveyancers will then correspond closely with
and usually obtain an undertaking from the conveyancers who are attending to the transfer of
the Purchaser's property to pay over the proceeds of that sale on registration.
Once the suspensive conditions are fulfilled, the Conveyancer will be instructed to proceed with the TRANSFER PROCESS. This involves certain steps.
CANCELLATION OF THE EXISTING BOND
If the Seller still owes Money to his bank in respect of his bond, because he borrowed money to buy the property himself, then that bond
will have to be cancelled at the same time as the property is transferred to the Purchaser. The Conveyancer
must obtain the original title deed to the property from the Seller's bank, who will be holding the title deed as security.
The Seller's bank will also let the Conveyancer have the "cancellation figures" ie. The exact amount still owing by the Seller
under his bond. When the property is registered in the name of the Purchaser and the Seller's bond is cancelled, The seller's
Bank will be paid the outstanding amount and the balance of the purchase price will be paid to the Seller. The cost of cancelling
the bond are payable by the Seller and are thus deducted from the purchase price before the Seller receives the balance. The Seller's
bank decides which Conveyancer will attend to the cancellation of the bond. If this is not the same Conveyancer who is attending to the
transfer of the property, then the Transferring Conveyancer must correspond closely with the Cancellation Conveyancer to ensure that the
transfer documents and the cancellations documents are lodged in the Deeds Office together.
REGISTRATION OF A NEW MORTGAGE BOND
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
If the Purchaser is obtaining a bond to pay the purchase price this bond will also have to be registered simultaneously
with the registration of the transfer and the cancellation of the Seller's bond. The bank which is granting the bond will
appoint the Conveyancer who is to attend to the registration of the bond. If this is not the same Conveyancer who is attending
to the registration of the property, then the transfer Conveyancer must cooperate closely with the bond Conveyancer to ensure that
the bond and transfer docs are drawn and are lodged at the Deeds Office together If the Bank appoints the same Conveyancer who is
attending to the transfer, then the process is made much simpler and quicker – because the bond and transfer docs will be prepared
and signed at one office. MEUMANN WHITE register bonds for all the major banks. The Conveyancer attending to the transfer will
obtain guarantees from the purchase's bank to ensure that the money being lent to the Purchaser is available on date of registration
of the bond. The various banks have different conditions which must be met before the bond can be registered. These conditions include
the signing of various documents by the Purchaser; obtaining insurance on the building that is erected on the property; obtaining and
ceding life assurance policy, the signing of suretyships etc. The Bank will not allow the bond to be registered until all the
conditions are met and it is thus in the interest of the Purchaser to take all steps necessary to comply with the Banks requirements.
REGISTRATION
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
The transfer, bond & cancellation documents must be lodged in the Deeds Office at the same time to ensure simultaneous registration.
If different conveyancers are attending to the registration of the Purchaser's bond, the cancellation of the Seller's bond and/or the
transfer of the property, then all these conveyancers must collaborate. From date of lodgment, it usually takes 7 days until date of
registration. The parties are notified on the day of registration and the Seller is paid out on the following day. The parties are
furnished with final accounts reflecting the final adjustments between the parties in respect of rates, levies, occupational rent and
other matters.
TRANSER OF THE PROPERTY
To enable the Conveyancer to prepare the transfer documents, he will require the Purchaser & Seller's details together with
copies of their Identity documents, marriage certificate, ANC's, divorce order, etc. After receiving these docs & the original Title Deed,
the Conveyancer will prepare the transfer docs & his proforma account.
The Parties will then be called upon to sign the docs and the purchaser will be called upon to pay the Conveyancer's costs.
These costs will include: -
These costs will include: -
- The Conveyancer's fees: these fees are charged in accordance with a tariff issued by the law society.
- Transfer Duty: This is a tax payable to the state on all transfers of immovable property & is calculated as a percentage of the purchase price. No transfer can be registered until the Deeds Office have proof that transfer duty has been paid
- Rates: the purchaser will be liable for rates from the date of registration of the property in his name. Approximately 3 months payment in advance will be required by the Conveyancer. to enable him to obtain rates clearance certificate from the rates department. However on receipt of the rates figures the Seller will be required to effect payment of the amount due and will be refunded the purchasers share in the final statement of account. No transfer can be registered until the Deeds Office has proof that the rates have been paid. If the property is a sectional title unit, then a levy clearance certificate must ALSO be obtained.
- Deeds Office fee: the Deeds Office charge a lodgment fee for all documents lodged for registration.
What is a Conveynancer?
A Conveyancer is a qualified attorney who has passed an extra examination in conveyancing. Only a conveyancer can prepare
and do registrations of an ownership and
bonds. The docs are complicated and the Conveyancer must comply with all the rules
and regulations of the Deeds Office and the Deeds Registries Act. It is thus important that the parties choose a reputable
firm of Conveyancers who work accurately and quickly. MEUMANN WHITE has been conveyancers for 40 years and has an excellent
reputation for accuracy and speed.
A TITLE DEED: This document is also known as a Deed of Transfer and it records your ownership of the property. It contains a description of the property and the details of the owner. The Conveyancer will prepare the new title deed which records the Purchaser as owner of the property. From the date of registration of this document in the Deeds Office, the Purchaser will be the registered owner of the property.
THE DEEDS OFFICE: The function of the Deeds office is to maintain a land registration system in South Africa so as to ensure security of title to owners of immovable property. All property transfers, bond registrations and bond cancellations must be registered in the Deeds Office. There are 8 Deeds Offices in South Africa. All registrations in Kwazulu Natal are recorded in the Deeds Office in Pietermaritzburg.
A TITLE DEED: This document is also known as a Deed of Transfer and it records your ownership of the property. It contains a description of the property and the details of the owner. The Conveyancer will prepare the new title deed which records the Purchaser as owner of the property. From the date of registration of this document in the Deeds Office, the Purchaser will be the registered owner of the property.
THE DEEDS OFFICE: The function of the Deeds office is to maintain a land registration system in South Africa so as to ensure security of title to owners of immovable property. All property transfers, bond registrations and bond cancellations must be registered in the Deeds Office. There are 8 Deeds Offices in South Africa. All registrations in Kwazulu Natal are recorded in the Deeds Office in Pietermaritzburg.