Although hiccups and stumbling blocks can occur at any point of the transaction, they most commonly occur at the following stages:
- Bond Approval;
- Bond Cancellation;
- The signing of transfer documents;
- Obtaining valid compliance certificates;
- Issues encountered at lodgements requiring the removal of notes by the Registrar of Deeds;
Transfers which are unusual and more complex, such as estate transfers which require an endorsement of the Master of the High Court, which can cause a delay. Most of these delays can easily be avoided through good communication and prompt co-operation with the transferring attorney and agent or, if they are outside of South Africa, by giving a valid power of attorney to a person within South Africa who can sign the necessary documents and act on their behalf.
One of the transferring attorney’s key roles is to co-ordinate and control all the role players involved in a transfer, including SARS (transfer duty), the municipality (Rates Clearance Certificate) and the bank.
And, in order to coordinate the process as seamlessly as possible, it is essential that both the buyer and seller submit all the necessary documentation in time, as per the legal requirements and without omissions. This is especially important if either party resides in another country or is otherwise difficult to contact for information and signatures.
It’s also vital that clients are completely up front with their agents regarding their financial situation from the onset.
We can then facilitate and expedite the process by having our bond originator prequalify them and the thorough credit check will reveal any potential snags.
This step is particularly important for buyers who are self-employed as banks are very strict about the documentation that they require for a bond application. At this stage I also advise clients to avoid making any expensive purchases that could negatively impact their affordability.
An experienced estate agent will be able to guide their clients every step of the way and, as long as they are upfront with their realtors, there should not be too many problems to circumvent.
And, as the transferring attorney and agent work closely together behind the scenes to ensure a smooth transfer, it’s always an advantage if they already have an established working relationship.”
Writer : Tracy Bartlett
Courtesy of Grahame Diedericks, Manager Principal in Midrand for Lew Geffen Sotheby’s International Realty & Private Property