PROPERTY TRANSFER

PROPERTY TRANSFER PROCESS

Step 15

Step 1

Step 2

The Purchaser pays the deposit/full purchase price to the transferring attorney. All funds is paid into an interest

bearing account for the Purchaser. The Purchaser applies for the bond at a financial Institution.

Step 3

An Offer to Purchase is signed

between Seller and

Purchaser.

After microfilming and capturing on the Deeds Office data system, the new Title Deed and

bond are released from the Deeds Office. Title Deed and mortgage bond are sent to the

Bondholder (Bank), or (new owner if no bond is registered) for safe keeping.

Step 14

Guarantees are paid out the day following registration and final accounts are sent to

the Seller and Purchaser (with payments, is applicable).

The bond is approved and the bond attorney receives

an instruction electronically via the internet.

Step 13

Step 4

Between 8-10 working days after lodgment the transfer, bond and cancellation are registered. Occupational rent is payable by the Purchaser to the Seller if the Purchaser occupies the property before it is transferred into his/her

name.

The tansferring attorney requests:

Step 12

- Copies of the Seller and Purchaser’s ID documents.

- Marriage certificate and Antenuptial contract (if applicable)

- If either party is a Company, Close Corporation or Trust

registration documents would be requested.

- FICA documents from the Seller and/or the Purchaser

(proof of residence not older than 3 months).

- Title Deed and balance on outstanding mortgage loan from present

Bondholder as well as the details of the attorneys who will cancel

existing bonds.

Documents are lodged in the Deeds Office when the transfer, bond and

cancellation attorneys are ready .

Step 11

Transferring attorney obtains Electrical Compliance Certificate from Seller.

Step 5

Step 10

The transferring attorney applies for cancellation figures, (if there is an existing

bond over the property) and rates clearance figures. (Clearance figures are to

be paid in advance for six months) If the property is a sectional

title a clearance figure is requested from the relevant

Body Corporate or managing agent.

Transferring attorney pays cancellation attorneys their costs and

issue them with guarantees.

Step 9

The transferring attorney requests guarantees from bond attorney.

Step 6

The transferring and bond attorneys prepare the documentation

for the Seller and Purchaser to sign.

Step 8

The transferring Attorney pays:

Step 7.1

The Purchaser must pay the transfer costs:

- Transfer duty payable to SARS when a property is transferred from one person to another.

- The transfer duty to SARS in order to obtain transfer

duty receipt.

- The municipal levies in order to obtain a rates clearance certificate.

- The levies to the relevant Body Corporate or HOA in

order to obtain the levy and insurance certificate.

- Transfer Duty is calculated as follows:

On the first R750 000.00 of the purchase price no transfer

duty is payable,

*R750 001.00 to R1 250 000.00 - 3% of value abovc R750 000.00;

*R1 250 001.00 to R1 750 000.0 - R15 000.00 + 6% of the value above R1 250 000.00; *R1 750 001.00 to R2 250 000.00 - R45 000-00 + 8% of value above R1 750 00.00; *R 2 250 001.00 and above - R85 000 + 11% of the amount above R2 250 000.00.

- If the property is sold as a going concern, the transaction is zero rated

- Attorney's costs.

Step 7.2

The Seller must pay :

Rates and taxes (up to six months in advance).

Sectional title or Body Corporate levies ( up to six months in advance).

Cancellation fee for the cancellation of the existing bond (R2500.00 – R3500.00).

If the seller is a Vat vendor, VAT of 14% is payable and no transfer duty is payable.

DOWNLOAD

THE PROCESS SHOULD NORMALLY TAKE 6 - 8 WEEKS.

REASONS FOR DELAY’S IN THE CONVEYANCING PROCESS:

- The bond instruction must be amended

- Deceased estates (The Seller or Purchaser passed away during the transferring process.

- Guarantees are not furnished punctually and in accordance with the Agreement.

- The Purchaser or Seller is insolvent.

- The Purchaser and or Seller did not provide the conveyancer with the necessary FICA documents.

- A backlog exists at the Deeds office where transfer

- The Deeds Office queries any aspect of the transaction.

- The selling price is not enough to cover the outstanding balance on the Seller's existing bond including interest.

- Sales subject to the sale of the purchaser's existing property.

- Properties subject to attachments or interdicts.

- If it is a sale in execution.

- Lost Title Deeds.

- Disputes over defects in properties.

- Matrimonial disputes.

- If Purchaser's costs are not paid in full.

- Contact details of Seller or Purchaser are incorrect.

- If occupational rent has not been paid in full.

- Other transaction to be registered simultaneously.

- If Seller and or Purchaser have funds owing to SARS.

- Townships awaiting proclamation or subdivisions to be completed.

- Sectional Title Registers to be opened.

- Servitudes to be registered.