Step 1
The receipt of instructions and the appointment of the Attorney/s
Once the sale agreement has been signed by the Seller and the Purchaser, the Conveyancing Transfer Attorney is instructed and the process of Conveyancing, or property transfer, commences.
Signing The Sale Agreement
& Payment Of Deposit
The sale agreement has been duly signed, dated and sent to both parties for their records. The next step is for the appointment of the Conveyancing Attorney, who will attend to the transfer of the property.
Conveyancing Attorneys Instructed
The Conveyancing Attorney, known as a “Conveyancer” receives the sale agreement and opens a file. The Conveyancer will examine the sale agreement and record all aspects of the transfer on the file. The contractual provisions will be carefully perused and observed throughout the process.
The Conveyancer will then make a request to the Deeds Office, for a copy of the Title Deed and records of the property, which is due to be transferred, to check for any restrictive title conditions and to ensure that the conditions are adequately attended to.
Seller’s Bond Cancellation
& Purchaser’s Bond Approval
In order to cancel the Seller’s existing bond over the property, the bond cancellation (“BC”) figures are requested and the Transferring Attorney prepares guarantee requirements in order to satisfy the existing debt over the property.
The Purchaser usually secures the necessary funds to finance the property by means of cash or a mortgage bond.
In the case of a cash transaction, it is ordinary practise for the funds to be transferred by the Purchaser, to the Conveyancer’s Trust Account. The funds are then invested by the Conveyancer, in an interest-bearing account, until date of registration.
In the case of the mortgage bond, bank guarantees are requested.
With regards to sale agreements which are subject to bond approval, the Purchaser must duly apply for and obtain approval of a bond. Should the Purchaser receive a notice of decline by the financial institution, the contract can become null and void.
Drafting & Signature Of Documents
Once the necessary “FICA” documents have been obtained, the documents required to pass transfer of the property will be drafted by the Conveyancer.
The Conveyancer will request each client’s original FICA documents to be presented to them, when signing the transfer documents.
Depending on the place of signature of the documents, being either locally or abroad, different authentication requirements apply to the signature thereof. It is advisable to consult with your Attorney if you are signing transfer or other legal documents outside of the Republic of South Africa, to ensure legal compliance of the documents.
Step 2
Legalities & Financial Aspects
Young Law will attend to the neccessary legalities and financial aspects of the transfer.
This includes the request for the Seller’s bond cancellation figures for settlement and the calculation and request of guarantees from the Purchaser’s Bond Attorney. The payments of clearance figures are made on behalf of the Seller, and the Purchaser’s transfer duty liability is submitted to SARS.
Purchaser’s Bond Registration
Documents Signed
The Bond Attorneys appointed for the registration of the bond, will attend to the drafting of documents and the Purchaser (client) will sign the bond documents and the bank guarantee authorisation documents.
Rates & Levy Clearance Certificates
Once the suspensive conditions in the sale agreement have been fulfilled, the clearance certificates will be applied for. Clearance certificates are required by legislation, in order to pass transfer of the property.
Compliance Certificates
The seller is usually responsible for the furnishing of several compliance certificates, which includes the following:
Electrical certificate of compliance (“ECC”)
Electrical Fence certificate of compliance (“EFC”)
Gas certificate of conformity
Plumbing certificate (Cape Town regions)
Entomologist’s certificate.
The ECC in particular, will be required by the Purchaser’s Bond Attorney, in order to obtain the necessary approvals to lodge the bond.
Payment Of Cash Or Bank Guarantees &
Payment Of Legal Fees
The Purchaser may pay the purchase price by way of a cash transfer to the Attorney’s trust account or by providing bank guarantees.
Usually, where the purchaser intends to register a bond over the property, the Bond Attorney will arrange for bank guarantees to be sent to the Transferring Attorney, in order to secure the purchase price and proceed with the transfer.
Once the transfer and bond documents have been signed, and the compliance and clearance certificates obtained, the legal costs in respect of the transfer are then expected to be paid.
The seller is required to settle bond cancellation costs and the Purchaser pays transfer costs, transfer duty and bond registration costs (if applicable).
Step 3
Deeds office documentation prepared for lodgement and registration
Transfer Duty Receipt Received
Once SARS has received payment of the Transfer Duty, a Transfer Duty Receipt will be issued.
The Transfer Duty Receipt provides confirmation of payment of the taxes due to SARS for the acquisition of the property.
Deeds Preparation
The Conveyancer will prepare those deeds which are required for submission to the Registrar of Deeds in order to pass transfer of a property.
The Conveyancer will prepare and lodge the necessary deeds in the Deeds Office as well as finalise any financial aspects of the transfer.
Lodgement Of Deeds At Deeds Office
Once the Conveyancer has prepared the documents, the deeds will be lodged or submitted, to the relevant Deeds Office having jurisdiction.
Once the deeds have been lodged in the Deeds Office the said deeds go through an examination process of approximately 7-10 working days.
On the last day of examination, the deeds will be sent to the Prep room, where after the Conveyancer has a few days to finalise the matter and hand the deeds in for registration.
Registration Of Transfer
The deeds will be sent from the “Prep” room to the “Execution” room where the Conveyancer executes the deeds and registration of the property takes place. The property is then registered in the name of the purchaser.
Simultaneously to the transfer of the property into the name of the purchaser, the linked attorneys will register the cancellation of the seller’s bond and register the new bond over the property.
Final financial accounts are drawn and the seller is paid the proceeds of the sale, within 48 hours of transfer.
A key handover is then arranged and celebrations can commence!