Transfer process simplified
Start Here
01.
Offer to purchase
The purchaser signs an offer to purchase (OTP). The seller, in return accepts the offer by also signing the OTP. This deed of sale is a binding contract between the purchaser and the seller that forms the basis of the property transaction
02.
Apply for finance
The purchaser or their bond originator applies to a financial institution for finance. A bond application will, in most cases, form part of the suspensive conditions. Suspensive Conditions refer to events that need to happen or be met before the sale is finalised. An example of another suspensive condition is the sale of the purchaser’s existing property.
03.
Bond approval
If there is an existing bond over the property, the transferring attorney will then contact the seller’s bank and request the original title deed and cancellation figures to settle the seller’s bond. The purchaser’s bank will then instruct a bond attorney to register a mortgage bond over the property that the purchaser is buying
04.
Cancel the seller’s bond
The seller’s bank instructs their attorneys, the bond cancellation attorneys, to cancel the seller’s bond. The cancellation attorneys then send the title deed and guarantee requirements to the bond attorney and the transferring attorney.
At this point, it is important to note that there are generally three types of attorneys involved in the transfer of a property, however, this is not always the case.
05.
Rates clearance certificate
The transferring attorneys request rates clearance certificate (RCC) from the local municipality.
Note: A property can only be transferred once all municipal charges have been paid in full to the relevant parties. The seller must pay the rates a few months in advance to obtain the RCC, however any credit on the account at the date of registration will be refunded back to the seller.
06.
Sign the transfer documents
The purchaser and seller will be contacted by the transferring attorneys to come in and sign the transfer documents. The buyer will be required to sign a Power of Attorney to transfer, as well as a number of affidavits to verify their marital status, financial status and identity.
Various documents are required from both the purchaser and the seller when they attend the transferring attorneys’ offices to sign the transfer documents. These documents will be needed to meet the Financial Intelligence Centre Act (FICA) requirements
07.
Payment of the transfer costs
The purchaser is responsible for the payment of the transfer costs and their share of the rates and taxes. A pro forma account will be presented to the buyer with estimated costs. Transfer cannot be effected without the payment of transfer costs.
08.
Electrical compliance certificate
An electrical compliance certificate (COC), electric fence certificate and gas certificate are required from the seller by the transferring and bond attorneys prior to lodgement. The COC is compulsory, however, the latter two certificates are dependent on whether the property has any electric fencing and/or gas installation
Get Started with Your Case
Call us: +27 63 550 8355