Transfer Process of Immovable Property

Your attorney will acknowledge receipt of the Deed of Sale and carry out a deeds search at the Deeds Office and obtain a copy of the title deed (from the seller if the property is unbonded or the bank if the property is bonded). A building compliance certificate must be applied for, if not in place.

The next step is to follow up on the fulfillment of suspensive conditions, e.g. the bond approval from the purchaser’s bank and deposit of cash deposit into a trust account, if applicable. On confirmation of fulfillment, the issue of cancellation instructions to the seller’s bondholder takes place - if the property is bonded. Then necessary documents for transfer and FIA documents from the seller and purchaser must be collected, where after transfer documents are drafted.

In terms of the Financial Intelligence Act, the firm handling the transaction is required to, before establishing a business relationship or conducting a single transaction with a prospective client or an existing client, obtain their FIA documentation, which includes the following documentation:

• Identity Documents;
• Marriage Certificate/Divorce Order (if applicable);
• Proof of Residence;
• Bank Account Confirmation Letter; and
• Income Tax Certificate.

The Seller needs to provide the conveyancing office with a Building Compliance Certificate.

The Transfer Documentation is prepared for signature by the Seller and the Purchaser. The Purchaser must sign bond documents and pay transfer and bond costs if applicable. The applications for the transfer duty receipt from the Receiver of Revenue plus the Rates Clearance Certificate from the municipality must be done.

Bond Cancellation Figures are requested if a bond is registered over the Property by the Seller. Guarantees from the Bond Attorney are requested if the Purchaser is registering a Bond over the Property.

Transfer Duty is paid to the Receiver of Inland Revenue and Stamp Duty to Receiver of Inland Revenue.

Once all documentation has been signed, all costs were received and the relevant Receipts/Certificates were obtained from the relevant third parties, the transaction is lodged at the Deeds Office. After approximately 7 to 10 working days, the deeds are available for registration. The conveyancer has 3 working days to finalise anything outstanding and register the transaction.

The transaction registers at the Deeds Office. Ownership passes from the seller to the purchaser. The purchaser’s new bond (if applicable) is registered. The seller’s existing bond (if applicable) is cancelled. Final accounts are drawn up for the seller and purchaser after which the attorney pays out the net dues to the seller. The agent’s commission is then paid out.

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 attorney. Once delivered, the conveyancer will send the original title deed to the relevant bank (if the property is bonded) or purchaser (if unbonded).