PROPERTY TRANSFERS:
WHAT HAPPENS AFTER I HAVE SIGNED THE DEED OF SALE?

The Seller normally appoints the Conveyancer who will attend to the registration of the transaction. The Estate Agent sometimes recommends a Conveyancer, but it is always the Seller’s prerogative to appoint a Conveyancer. A Conveyancer is an attorney who has passed a further specialised examination. Once the Deed of Sale is signed by both parties, a copy thereof is delivered to the Conveyancer and the registration of the transfer in the Deeds Office starts.

There are normally two other sets of attorneys involved in the registration process, namely the Bond Registration Attorneys and the Bond Cancellation attorneys. After signing the Deed of Sale, the Purchaser applies for a loan and as soon as the loan has been approved, his bank appoints attorneys to attend to the registration of a bond over the property (the Bond Registration Attorneys).

The Bond Cancellation Attorneys are appointed by the Bank that holds the current bond registered over the property. They attend to the cancellation of the bond that was passed by the Seller over the property.

Each of the attorneys attends to the preparation of their documents for the Deeds Office and as soon as they are all ready, the documents are lodged simultaneously at the Deeds Office.

The process is as follows:

By the Transferring Attorney:

1. Bond cancellation figures and the original Title Deed are requested from the bank or other institution that has registered a bond in their favour over the property;
2. Application is made for clearance figures for rates and taxes from the Municipality in the case of a full title property or the Body Corporate in the case of a Sectional Title Unit for levies payable in connection with the property;
3. The following documents and information are required from the Seller and Purchaser:

• Copies of identity documents;
• Proof of current residential address;
• Copy of Antenuptial Contract (if applicable);
• Copy of Divorce order (if applicable);
• Income tax reference number.

4. A statement is sent to the Purchaser reflecting all the relevant transfer fees including transfer duty payable to the Receiver of Revenue;
5. The transfer documents are prepared and arrangement is made for signing thereof by the Seller and Purchaser;
6. The Purchaser pays the transfer fees and any deposit on the Purchase Price as was provided for in the Deed of Sale;
7. Payment for rates and taxes to the municipality or levies to the body corporate is made on receipt of the clearance figures from the relevant institution and a Clearance Certificate is obtained from them;
8. Payment of transfer duty is made to the Receiver of Revenue and a Transfer Duty Receipt is obtained from them;
9. On receipt of cancellation figures from the existing bondholder, guarantees are requested from the Bond Registration Attorneys;
10. On receipt of the guarantees from the Bond Registration Attorneys, the guarantees are forwarded to the Bond Cancellation Attorneys;
11. Arrangement is made for simultaneous lodgement at the Deeds Office by the Transferring Attorneys, Bond Cancellation Attorneys and Bond Registration Attorneys;
12. The following documents are lodged by the Transferring Attorneys:

• Power of Attorney to transfer the property, signed by the Seller;
• New Title Deed which after registration will be the Title Deed in terms whereof Purchaser will hold the property;
• Transfer Duty Receipt from the Receiver of Revenue;
• Clearance Certificate from the Municipality or Body Corporate;
• Existing Title Deed in terms whereof the property is held by the Seller (if there is an existing bond over the property which will be cancelled, the Title Deed will be lodged by the Cancellation Attorneys.

By the Bond Registration Attorney:

1. The bond documents are drawn;
2. The Purchaser signs the bond documents and pays the bond costs;
3. Guarantees are issued;
4. Guarantees are handed to the Transferring Attorney;
5. Simultaneous lodgement at the Deeds Office.

By the Cancellation Attorney:

1. Cancellation figures are received from the Bank;
2. Cancellation figures are forwarded to the Transferring Attorneys for preparation of guarantees by the Bond Registration Attorney;
3. Guarantees are received to cancel the bond and a consent to cancellation is signed by the Bank or its attorneys;
4. Simultaneous lodgement at the Deeds Office.

Once a transaction is lodged at the Deeds Office, it is examined by the examiners and provided the documents are not rejected the registration takes between 8 and 10 working days from date of lodgment. From date of receipt of instructions to date of registration the process takes about 8 weeks.

Written by Una Du Toit – Conveyancer
PETZER, DU TOIT AND RAMULIFHO