Conveyancing and Property Transfers

 

 

 

Yes, but specific procedures apply, such as signing before a Notary Public and obtaining an Apostille, or signing at a South African embassy.

Typically, the process takes between 8 to 12 weeks from the date the Offer to Purchase is signed, though this can vary based on factors like bond approval and municipal clearance certificates.

Before a property is transferred, the seller is responsible for obtaining and paying for compliance certificates to confirm the property meets safety and legal standards. Buyers should request these certificates early in the Offer to Purchase and ensure they receive copies before the transfer process is completed.

Common Compliance Certificates Include:

Electrical Certificate
Confirms that the property’s electrical installation complies with safety standards.

Water/Plumbing Certificate
Ensures that the plumbing system is in working order and free from leaks, as per municipal regulations.

Gas Certificate
Verifies that any gas installation meets safety requirements.

Beetle Certificate
Required in certain regions, this confirms that the property is free of beetle infestations (wood-destroying insects).

Electric Fence Certificate
Ensures electric fences comply with legal and safety standards if installed on the property.

For a smooth transfer process, both buyers and sellers must ensure these certificates are obtained and valid before finalizing the sale.
 

Transfer Costs

Calculated on a sliding scale based on the property’s purchase price.
Fees are set by the Law Society.
Transfer Duty

Payable to SARS if the property value or purchase price exceeds R1,000,000.
Transfer duty is calculated on a sliding scale.
Not applicable if the seller is VAT-registered, as VAT will apply instead.
Bond Costs

Applicable when a bond is registered. Costs depend on the bond amount.
The bank charges an initiation fee, stipulated in the Letter of Acceptance.
Occupational Rent

If the buyer occupies the property before registration, they pay occupational rent as stated in the Offer to Purchase.
Levies

For Sectional Title Transfers, a levy clearance certificate fee applies.
Pro-rata monthly levies and any special levies must be settled as determined by the Body Corporate.
Rates Clearance Certificate

The municipality charges a fee for issuing a rates clearance certificate.
Homeowners’ Association Consent

If required by the Title Deed, the Homeowners’ Association will charge a consent fee for the transfer.
Agent’s Commission

Payable from the sale proceeds on transfer.
The Offer to Purchase specifies whether the commission includes or excludes VAT.
Bond Cancellation Penalty

Banks require 90 days’ notice to cancel a bond. Penalty interest applies if canceled earlier, calculated on the outstanding bond amount.
Bond Cancellation Fee

Attorneys appointed by the bank charge a fee to cancel the existing bond, even if fully paid up.
Rates and Services

Municipal rates and services must be paid up to date, including any arrears. Refunds for overpayments will be issued to the seller after transfer.
Compliance Certificates

Sellers must provide compliance certificates where applicable, including:
Electrical, Gas, Beetle, Electric Fence, Plumbing, etc.
Costs for necessary repairs are the seller’s responsibility.
Repairs and Title Deed Issues

Any repairs stipulated in the Offer to Purchase must be completed before transfer.
If the original Title Deed is lost (unbonded property), a certified copy must be obtained from the Deeds Office.
Additional Considerations

Funds may be advanced to settle rates figures, with admin fees deducted from the sale proceeds.
Understanding these costs and requirements ensures a smoother property transfer process. For professional guidance on your transfer, contact us today!

The seller's existing bond must be canceled upon transfer, often coordinated by the conveyancer with the seller's bank.

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Understanding Conveyancing

Conveyancing is the legal process of transferring ownership of immovable property from one person or organization to another. This ensures that ownership is legally recognized and cannot be disputed. It also involves the registration of mortgages and other encumbrances.

In South African law, conveyancing includes two main phases

  • Exchange of Contracts Both parties sign a legally binding agreement.
  • Completion The transfer is finalized, and ownership is officially updated.

Conveyancing and Property Transfers

The Importance of a Written Contract

For a sale of land to be valid, the contract must be in writing, and two copies of the sale agreement must be signed. Each party retains a copy, solidifying the agreement.

Why You Need a Conveyancer

After a sale agreement is reached, a conveyancer is appointed to oversee the legal process. Typically, this appointment follows instructions provided by the estate agent and includes

  • Details of the buyer and seller (names, ID/passport numbers, marital status).
  • A copy of the sale agreement.

In South Africa, conveyancers must pass the National Conveyancing Examination to be licensed to practice. This ensures expertise in handling property-related transactions.

Key Steps in the Conveyancing Process

  • Sale Agreement (Offer to Purchase)

The process begins with the Sale Agreement, also known as the Offer to Purchase (OTP). This document outlines the agreed terms, including the purchase price, payment details, and any special conditions.
Timeline - 1 week (varies based on negotiations).

  • Bond Approval (If Applicable)

Buyers requiring a home loan must secure bond approval. The bank conducts credit checks and a property valuation before granting approval.
Timeline between 1–4 weeks.

  • Appointing a Conveyancer

Once the OTP is signed and bond approval is obtained, the seller appoints a conveyancer. The conveyancer ensures all legal requirements are met for the ownership transfer.
Timeline within 1 week after the OTP is finalized.

  •  Initiating the Transfer Process

The conveyancer begins by obtaining the original title deed (if bonded) and preparing necessary legal documents. The buyer must ensure the deposit and balance payment are in place.
Timeline between 1–3 weeks.

  • Obtaining Clearance Certificates

The conveyancer secures clearance certificates from relevant authorities, such as

Rates Clearance Certificate (local municipality).
Levy Clearance Certificate (if applicable, for sectional title properties or estates).
Timeline of 1–2 weeks (delays may occur if there are disputes or arrears).

  • Lodgement at the Deeds Office

The conveyancer lodges all transfer documents with the Deeds Office, where they are reviewed and registered which can take between 1-3 weeks.

Transfer of Ownership

After registration at the Deeds Office, the buyer officially becomes the property owner. The conveyancer notifies both parties and updates the title deed to reflect the new ownership.
Timeline around 7–14 days post-lodgement.

Property Conveyancing Responsibilities

The system of conveyancing ensures the buyer gains ownership of the property and is aware of any restrictions. Buyers should verify that

  • The seller is the legal owner.
  • The property is free of undisclosed liabilities.
  • The title is marketable and free of impediments.

Land registration systems in South Africa help streamline this process, providing public records to facilitate informed decisions.

Choosing a Conveyancer

A skilled conveyancer ensures a seamless transfer by handling all legal requirements and addressing any issues that arise. Firms like [Aucamp / DDKinc] specialize in conveyancing and property law, offering

  • Expertise in the South African property market.
  • Cost-effective and efficient handling of transactions.
  • Guidance on rights and obligations tied to property ownership.

Conclusion

Conveyancing plays a critical role in property transactions, protecting buyers and sellers alike. Working with an experienced conveyancer ensures a smooth process, compliance with the law, and peace of mind during one of life’s most significant investments.