The legal term for the transfer of property ownership is conveyancing. The process every new homeowner will go through once their bond has is approved and before they can gain access to their new home.
It can be somewhat complicated, but once you understand the process and you have all your documentation in order, it’s a matter of patience that will see the process through smoothly.
The transfer of property from one owner to another is handled by an attorney (conveyancer) who deals with all the parties concerned. The entire process comprises of five steps which end with the official transfer and registration at the Deeds Office.
Step one
The buyer will complete and sign an Offer to Purchase agreement on the property they’d like to purchase, which must be signed and accepted by the seller. The prospective homeowner will then need to obtain a home loan from a bank. Often, if the buyer wants to compare the available options for their home loan, they would approach not only their bank but may go through a bond originator, such as Ooba, to source the best possible deal and rates.
When the bank has approved the home loan, a bond attorney will be appointed to draw up the bond documentation which must be signed by the buyer. The buyer is also liable for the costs of the bond attorney.
Step two
The seller may choose a transferring attorney (conveyancer) to handle the entire transaction. The conveyancer will obtain various documentation from both seller and buyer, such as FICA documentation (ID and proof of residence). They will also request the seller’s bond cancellation figures, after which the bank will send the original Title Deed to the bond cancellation attorneys.
Step three
The conveyancer will prepare the transfer documentation to be signed by both the seller and the buyer. The municipality then provides a statement of the seller’s account to the conveyancer on request, to ensure that the rates and taxes are paid up to date before a clearance certificate can be issued and lodged.
Step four
SARS (South African Revenue Services) will issue a transfer duty to be paid by the buyer. Transfer duty is a tax levied on property transfers as well as the transfer attorney’s fees. The payment is processed via a transfer duty receipt on SARS E-filing, and the conveyancer makes the payment on behalf of the buyer.
Step five
The conveyancer’s office will lodge all the required documentation with the Deeds Office, together with the cancellation of the old bond and the confirmation of the new bond. It takes around four to six weeks for these documents to be processed and the transaction to be registered.
Upon registration, the buyer is the legal owner of the property and may move into their new home.