The Transfer Process

Once the transferring attorney has received instructions to transfer immovable property from a seller to a purchaser in accordance with a concluded deed of sale (an accepted offer to purchase), the office of the attorney will attend to the following:

1. an online Deeds Office search to confirm the identity of the seller, description of the property and to obtain details of any bonds, servitudes or other interdicts registered against the title deed;

2. letters by e-mail to both the seller and the purchaser requesting the required FICA documentation and other general information for preparation of the transfer documents;

3. a letter by e-mail to the purchaser requesting payment of the deposit (if provided for) within the number of days stipulated in the deed of sale and providing details of the trust account into which payment has to be effected;

4. an online request to the relevant municipality in respect of the annual rates and taxes (in the event of a sectional title unit, or a property within a particular development, a letter to the Body Corporate for the applicable levies) with a view of determining the appropriate amount that the seller has to pay in advance prior to registration of transfer in order to acquire the Rates Clearance Certificate or Levy Clearance Certificate;

5. a letter by e-mail to the existing bond holder (normally a bank) to acquire its cancellation requirements, a copy of the existing title deed which the bank holds as part of its security and details of the attorney who will be cancelling the bond on behalf of the bank (“the bond cancellation attorney”);

6. a letter by e-mail to the bank where the purchaser has applied for a mortgage bond to ascertain progress with such bond’s processing, details of the attorney who will be registering the bond and to provide the latter with whatever documentation and/or information that may be required;

7. with a printout of the Deeds Office search (1 above), the FICA documentation (2 above), a copy of the title deed (5 above) and details of the rates and taxes (or levies, as the case may be) (4 above) at hand, prepare the transfer documents, comprising one set for signature by or on behalf of the seller and a separate set of documents for signature by the purchaser;

8. present (personally, by courier or e-mail) the two sets of transfer documents to the owner and to the purchaser, respectively, for signature and to the latter a detailed estimate of the transfer costs, comprising the relevant transfer duty (tax), transfer fee (attorney’s fee), levies (if applicable) and any disbursements;

9. a letter by e-mail to the attorney who has to register the mortgage bond in favour of the bank (6 above) to furnish him/her with a copy of the draft title deed in accordance with which the bond documents have to be prepared;

10. on having received payment of the deposit (3 above) and the transfer costs (8 above) from the purchaser, invest the deposit (normally for the benefit of the purchaser) and payment of the transfer duty to SARS and the rates and taxes (or levies) to the municipality (or Body Corporate);

11. request the bank (6 above) by e-mail to issue a guarantee for payment of the outstanding amount of the seller’s bond to the bond cancellation attorney (referred to in 5 above) and the balance of the bond amount to the transferring attorney;

12. request the purchaser by e-mail to furnish a guarantee for payment of the balance of the purchase price, if any, or to pay the amount into the trust account of the transferring attorney to be added to the investment of the deposit in anticipation of registration of transfer;

13. ensure that the original Electrical Certificate of Compliance, the Gas Compliance Certificate (if applicable) and the Borer Beetle Certificate are in his/her possession prior to proceeding to 14 below;

14. liaise with the attorney who will be registering the purchaser’s mortgage bond (6 above) and the attorney who will be cancelling the seller’s existing mortgage bond (5 above) for simultaneous lodgement of their respective documentation at the Deeds Office;

15. on the date that the Deeds Office notifies the respective attorneys that the transaction is ready for registration, attend to whatever the Deeds Office may require prior to actual registration of transfer (commonly being referred to as the documents being “on prep”);

16. upon having satisfied the requirements of the Deeds Office relating to the documents “on prep” (referred to as the Deeds Office’s “notes”), if any, liaise with the bond registration attorney and the bond cancellation attorney with a view of simultaneously “handing the documents in” for registration on the following business day;

17. on date of registration of transfer,
    • advise the seller, the purchaser and the relevant estate agent that transfer has been registered;
    • present the guarantee (11 and 12 above) to the bank for payment;
    • withdraw the investment of the deposit and the balance of the purchase price (if applicable) and transfer the same to the transferring attorney’s trust account;
    • account to the seller in respect of the proceeds of the sale;
    • account to the purchaser in respect of the transfer costs and the accrued interest on the deposit (and the balance of the purchase price, if applicable);
    • payment to the suppliers of the Electrical Certificate of Compliance, the Gas Compliance Certificate (if applicable) and the Borer Beetle Certificate;
    • payment to the relevant estate agent/agency of his/her/its commission;

18. upon delivery of the new title deed by the Deeds Office (normally after a few weeks), forward it to the new owner (purchaser) or the bank in whose favour the bond was registered (6 above) to be retained by such bank together with the registered bond document as part of the bank’s security.