GP van Rhyn Minnaar
GP van Rhyn Minnaar

The Transfer Process Simplified

by Dion Groenewald

 After months of searching, you found your dream home and cannot wait to move in!

The Deed of Sale has been signed and now the transfer process needs to take place. But what does this entail exactly?

Buyers and Sellers are often unsure what to expect during this process. Let us simplify the transfer process:

WHAT IS CONVEYANCING?

Conveyancing deals with the transfer of immovable property, the hypothecation of immovable property by means of mortgage bonds and various other acts related to immovable property.

WHAT IS THE ROLE OF THE CONVEYANCER?

A Conveyancer is an admitted attorney who has passed a specialised conveyancing examination and was thereafter admitted as a conveyancer in the High Court of South Africa. The Conveyancer is assited by a Conveyancing Secretary or Paralegal.

HOW DOES THE TRANSFER OF OWNERSHIP OF PROPERTY TAKE PLACE?

The transfer of property is a complex process, often involving various legal aspects.

In general, the transfer of ownership of property is effected by two legal acts:

  • The signing of the Deed of Sale by the Seller and Purchaser (the preceding legal act); and
  • The registration of the Deed of Transfer (the registration act).

WHAT IS A DEED OF TRANSER?

The Deed of Transfer refers to the document by means of which right of ownership of land is transferred from one person to another (from the Seller to the Purchaser). It also serves as proof of the owner’s right of ownership over the land.

WHAT DOES THE TRANSFER PROCESS ENTAIL?

The transfer process entails various steps, including the following:

  1. The original Title Deed and original Mortgage Bond are obtained.
  2. The Bondholder will provide their cancellation figures for the cancellation of the existing mortgage bond registered over the property.
  3. Municipal rates and taxes due to the Municipality are payable in advance. No transfer of property can be affected unless the outstanding rates and taxes are paid up. Once paid, the Municipality will issue a Clearance Certificate.
  4. The Purchaser’s financing must be secured and the necessary guarantees are obtained from the new Bondholder.
  5. Seller and Purchaser sign the transfer documents.
  6. The transfer costs will become payable. On every property transactions, payment of either Transfer Duty or VAT will be payable to SARS.
  7. Arrangements are made with the linked attorneys involved in the transaction, for all the documents to be lodged simultaneously in the Deeds Office.
  8. Upon lodgement, the transfer documents are examined by the Deeds Office and, if found to be in order, the transaction is registered.
  9. On date of registration, the Purchaser becomes the new owner of the property. 

Please feel free to contact our offices should you have any questions regarding the transfer process or require professional property related advice.