Attorneys Notaries and Conveyancers

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Property Law

PROPERTY TRANSFERS

The following is an exposition of the standard steps normally involved in the average property transaction involving:- 

  1. the cancellation of the seller's existing bond;

  2. the registration of transfer from seller to purchaser

  3. the registration of a bond by the purchaser

This list is not an exhaustive one but merely a guide to help parties to property transactions understand the steps involved in matters attended to by a Conveyancer.

  1. A deed of sale is entered into between seller and purchaser;

  2. The deed of sale is forwarded to a conveyancer to attend to transfer

  3. The Conveyancer will acknowledge receipt of the instruction to all parties concerned and request any outstanding documentation necessary for them to prepare the transfer and other documentation for example Identity Documents and Seller's Title Deed;

  4. The Conveyancer would attend to a Deeds Office search in order to confirm the correct property description and to ascertain whether there any impediments preventing transfer in the normal course;

  5. Cancellation figures and the seller's Title Deed are requested by the Conveyancer from the mortgagee in respect of the property (the mortgagee being the financial institution holding the seller's bond) (Cancellation figures being the amount required by such financial institution to settle the seller's bond);

  6. The Conveyancer prepares the necessary transfer documentation, namely :-

In the case of the seller:-
  • Power of Attorney to pass transfer
  • Declaration by seller confirming the purchase price and nature of property
  • Affidavit of insolvency confirming that the seller is not insolvent
  • A marital status affidavit confirming the marital status of the seller
In the case of the purchaser:-
  • Declaration by purchaser as to purchase price and nature of property purchased
  • Affidavit of insolvency confirming that the purchase is not insolvent
  • A marital status affidavit confirming the marital status of the purchaser
  • An investment authority authorizing the Conveyancer to invest any large sums of money deposited in trust in an interest bearing account for the account of the purchaser

A Deed of transfer is prepared on the strength of the aforesaid information, the said draft Deed of transfer to become the holding deed in respect of the property when registered in the Deeds Office.

A copy of the draft Deed is forwarded to the Conveyancer attending to the registration of the purchaser's bond to enable him to prepare the necessary bond documentation.

Simultaneously with the aforesaid, the Conveyancer will request a guarantee for payment of funds upon registration of transfer simultaneously with registration of the purchaser's bond.

The necessary guarantees are forwarded to the seller's bondholders cancellation attorneys who, when satisfied that their client's bond will be paid on registration of transfer, will forward a consent to cancellation to the deed office which will be lodged simultaneously with the transfer and new bond documentation.

The outstanding rates (or levies in the event of Sectional Title) on the property are ascertained (the rates in respect of the property) to be paid to the end of the rates-year namely 30 June
A pro-forma statement of account is forwarded to the purchaser calling for payment of costs, rates/levies,  Transfer duty, etc
A rates-clearance and/or levy clearance certificate in the sale of Sectional title property is applied for.
A transfer duty receipt or exemption is applied for from the Receiver of Revenue.

The transfer documentation  and rates/levy clearance certificate, transfer duty receipt, bond documentation and bond cancellation are forwarded to Cape Town for simultaneously lodgment in the Cape Town Deeds Registry.

The documentation proceeds through a process of examination taking 8 - 10 days whereafter the transactions are registered in the Deeds Office.

Upon registration of this typical property transaction the seller's existing bond will be cancelled, the property transferred and the property mortgaged in favour of the purchaser's new bond holder and only at this stage does the purchaser become the owner of the property and the seller become entitled to the proceeds of the purchase price.
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Legal Disclaimer:
This information is not intended for use without professional advice.

 


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