The Transfer Process (You the Buyer)
What is the process behind a transfer of deed sale. I.E. When I buy your property, what's the process behind the scenes that changes the property details from your name to my name.
CONVEYANCING The term "conveyancing" describes the legal process whereby a person, close corporation, company or trust becomes registered and lawful owner of fixed property and ensures that such ownership cannot be challenged. The conveyancer is a person who has passed the national conveyancing examination. By law this is the only person who can register fixed property transfers.
The seller usually appoints the conveyancer in the transfer process. This appointment can be negotiated between the parties of sale agreements.
Agreement of Sale
The first step in the process of property transfer is to ensure the existence of the Offer to Purchase or Agreements of Sale. This means a valid contract between you the buyer and the seller. A written Offer to Purchase signed by a purchaser and accepted by the seller, after all suspense conditions have been fulfilled, constitutes a binding DEED OF SALE. Oral contracts do not stand.
On receipt of the signed Deed of Sale, the conveyancer will conduct the following procedures:
1. Conduct a Deeds office search to verify the details of the property
2. Prepare the documentation that the seller and you the purchaser will need to sign
3. Liaise with the municipality for valuation certificates and rates clearance forms
4. Electrical Certificates
5. Purchasers (your) bond instructions which they will receive from the bank
All costs relating to the transfer of fixed property need to be paid prior to registration of transfer and will include the following:
Value Added Tax
Rates and Levies
Bond Registration Costs
Bond Cancellation Costs
Deeds Office Procedures
In order to get an estimated idea of what transfer and bond costs you will be liable for, please Click here.
The conveyancer will lodge the documents they have prepared with the Deeds Office for registration. If there is a mortgage bond to be registered, or a bond to be cancelled, the conveyancers attending to the registration thereof will lodge their documentation simultaneously with the transfer documentation.
Two examiners in the Deeds Office will then examine the documentation to ensure that they comply with all the relevant legislation and regulations. If all the documents are found to be in order and ready for registration they are executed by the conveyancer approximately eight working days after lodged in the Deeds Office.
On registration the purchaser becomes the lawful owner of the property, Approximately one month after registration the Deeds Office releases the Title Deed reflecting the new ownership, which in turn is passed on to the new owner. If a mortgage bond was registered the Title Deed is retained by the financial institution.
The period of time it takes to register a transfer depends on the cooperation of each party involved. Most transfers if everything runs smoothly happens within 6 - 8 weeks.