Buying Or Selling A Home? Know The Process
The transfer process is synonymous with building a house. The foundation must be laid and certain parts are built simultaneously in order for the process to be completed as one cannot be done without the other. There are many parties involved in a transfer process and each one has an important role to play.
The following are the steps involved in the transfer of property:
CONTRACT OF SALE
The nominated transferring attorney, usually appointed by the Seller, acknowledges receipt of the instruction to all parties involved, being the Seller, Purchaser, and Estate Agent, if one was used.
The transferring attorney peruses the agreement to familiarise themselves with the terms and conditions. The attorney makes a point of mentioning any suspensive conditions that may be listed in the contract sale, for example, the date of when the Purchaser shall confirm whether he/she has obtained a bond, should the sale be subject to the Purchaser obtaining a bond.
Once the Purchaser’s bond has been approved by the financial institution and the attorney is informed of this, the attorney shall request all supporting documents from the Seller and the Purchaser, such as FICA documents and any other necessary documents to proceed with the transaction.
Furthermore, the attorney conducts a deeds office search to verify the property details that is being sold/purchased. The attorney shall, as soon as possible, contact the Seller’s financial institution, who has an existing mortgage bond over the property, to advise that the property is being sold.
COLLECTION OF DOCUMENTS AND FIGURES
This step follows from the above-mentioned, whereby the transferring attorney continues to gather all required figures, such as rates clearance figures and certificates issued by a municipality, and clearance figures from the Body Corporate or Homeowners’ Association, should the property be a sectional title or in an estate. Bond cancellation figures are requested from the bond holder, being the existing financial institution.
The title deed is requested from the bond holder. The Seller must be informed to start obtaining the electrical compliance certificate, beetle certificate, and plumbing certificate, which are all required to transfer the property.
COLLECTION OF PURCHASE PRICE AND COSTS
The attorney must ensure the collection of the deposit, transfer duty, and conveyancer’s costs from the Purchaser and clearance costs from the Seller. The collection of documents and figures as well as the collection of costs run concurrently.
DRAWING AND SIGNING OF TRANSFER DOCUMENTS
The attorney commences drafting the transfer documents, which is the new deed of transfer, power of attorney, and any other supporting documents that may be required to be lodged to pass transfer. The draft transfer documents are forwarded to the attorney that is registering the new bond. The Seller and Purchaser will sign the transfer documents at the attorney’s office.
Upon receipt of the monies from the Purchaser as stated above, the attorney will pay the transfer duty to SARS in order to obtain a transfer duty receipt.
The attorney shall pay the municipality and/or the Body Corporate or the Homeowners’ Association in order to obtain the clearance certificates. It is important to note that transfer will take place should these clearance certificates not be obtained from the appropriate body.