FREE, instant access, to telephonic LEGAL ADVISORS, for LIFE!
Once your home loan has been approved, it’s time to start the ball rolling and get your property registered in your name.
The transfer of property
The house needs to move from the name of the Seller into the name of the Buyer.
The transfer of ownership of property is undertaken by a Transfer Attorney, who is appointed by the seller. The process involves a number of steps including obtaining the original title deed/s, various clearances such as municipal (rates and taxes) and tax clearances and electricity, plumbing and other compliance certificates.
The Transfer Attorney, prepares all the documents needed for registering the property transfer. The most important documents include the Title Deed and cancellation figures from the Bank, and a rates clearance certificate which serves as proof of payment for rates and taxes from the relevant municipality. Once these documents are ready, the municipality will provide the Transfer Attorney with a rates clearance certificate and SARS will issue a transfer duty receipt after receiving payment.
The Buyer will have to pay the required transfer duty on this house. The duty is calculated on a sliding scale according to the purchase price of the house and is payable to SARS. At this stage the Buyer is required to pay the pro forma account which is an estimate of the transfer costs. This estimate consists of the transfer duty, conveyancing fees charged by the Transfer Attorney and pro rata rates or levies.
Preparing the bond documentation
The bank or financial institution that grants a housing bond will also appoint an attorney (bond attorney), who will be responsible for registering a bond over the property in the name of the lending institution. At the same time, there might be an existing bond on the property and a second bond attorney will thus be appointed by that particular financial institution to effect the cancellation of the bond upon full settlement.
The Bond Attorney now prepares the bond documentation with the Buyer. This includes preparing the Buyer’s home loan account. The Buyer then signs these documents and pays all the costs involved to the Bond Attorney.
Cancelling the bond
The Bond Attorney will submit these documents and guarantees to the Transfer Attorney for submission to the Deeds Office; however, the Bond Attorney and Transfer Attorney may be the same person. Copies of these documents and guarantees will also be given to the Cancellation Attorney, who uses them to gain consent from the Bank for cancellation of the Seller’s bond.
The Deeds Office
Once all the documents have been signed and all the costs have been paid, the information will be simultaneously lodged at the Deeds Office by the relevant Attorneys. These documents include: Deed of Transfer, Buyer’s bond information and transfer duty receipt from the Receiver of Revenue.
The Deeds Office will take 2 – 3 weeks to verify all submitted documents depending on the various circumstances; once complete, all Attorneys involved will be notified. The final step of bond registration will take place on the same day.
Payment of the home loan
On the day of registration the Bank pays out the amount needed for the home loan and the Buyer officially becomes the owner of the property. This entire registration process typically takes about three months to complete, but varies according to the area and time of year.
Although the process appears complicated and lengthy, we will help you throughout: by selecting all the Attorneys needed and keep you updated on the progress of the transfer. We will guide you around what information to submit and will explain the legal jargon throughout the process. Make sure you understand everything before signing on the dotted line.