For many people not in the industry, the transfer process is this thing the lawyers handle. Understanding the process helps you as seller or buyer know what will happen The steps are as follows:
STEP 1: RECEIPT OF DEED OF SALE Acknowledgement of receipt. Deeds Office search and copy of the Title Deed requested. Apply to municipality for Building Compliance Certificate. STEP 2: FULFILMENT OF SUSPENSIVE CONDITIONS Follow up on fulfilment of suspensive conditions, e.g. bond approval or sale of purchaser’s property. On confirmation of fulfilment, issue cancellation instructions to seller’s bondholder, if property is bonded. Collect necessary documents for transfer and FIA from seller and purchaser and draft transfer documents. STEP 3: FIA Check FIA compliance. STEP 4: GUARANTEES Ensure satisfactory guarantees in place for purchase price STEP 5: COMPLIANCE CERTIFICATE Seller to provide a Building Compliance Certificate. STEP 6: SIGNATURE OF DOCUMENTS & PAYMENT OF COSTS Seller and Purchaser sign transfer documents. Purchaser sign bond documents (if applicable). Purchaser pays transfer costs and bond cost (if applicable). Apply for transfer duty receipt and rates clearance certificate. STEP 7: LODGEMENT OF DEEDS AT THE DEEDS OFFICE Upon receipt of transfer duty receipt, rates clearance certificate and original Title Deed, arrange with linked bond cancellation and bond attorneys for simultaneous lodgement. Deeds lodged at the Deeds Office, Deeds examined. Examination process takes seven to ten working days. After approximately 7 to 10 working days, the deeds come “up for registration”. The conveyancer has 3 working days to finalize anything outstanding and register the transaction. STEP 8: REGISTRATION: Registration takes place at about 9h00 on the day of registration. On that day ownership passes from Seller to Purchaser. Purchaser’s new bond (if applicable) is registered. Seller’s existing bond (if applicable) is cancelled. Final accounts drawn for the Seller and Purchaser. Seller paid out net proceeds. Agent’s commission paid, if applicable. STEP 9: DELIVERY OF DEEDS Once registered, the deeds are numbered and scanned in the Deeds Office and it can take up to three months for the Deeds office to deliver the original Title Deed and mortgage bond back to the conveyancer. Once delivered, the conveyancer will send the original Title Deed to the relevant bank (if the property is bonded) or Purchaser (if unbonded). |