The transfer procedure

Once the Agreement of Sale and Purchase has been signed by the buyer and the seller, it becomes a binding agreement. The estate agent will issue instructions to the Conveyancers to attend to the registration of transfer into the purchasers name.

1. CONDITIONS

When all the subjective conditions have been fulfilled such as the bond being granted, and the wood- borer and electrical inspections done and a clearance certificate obtained, the Conveyancers will start on a set of transfer documents.

2. SETTLEMENT FIGURE

The conveyancer obtains a settlement figure from the Financial Institution holding the current bond over the property. Written applications must be done.

3. TITLE DEEDS

The Conveyancers must obtain the Title Deeds to the property. These are frequently held by the Financial Institution holding the bond over the property. Written application must be made.

4. GUARANTEE

The financial Institution holding the Title Deeds will only release them if and when a guarantee is issued that the existing bond balance will be paid in full on transfer.

5. DOCUMENTS

These are drawn up by the conveyances for the buyer and the seller to sign.

  • Power of Attorney from seller to the conveyancers authorizing the latter to effect transfer into purchaser’s name.
  • Transfer duty declaration to be signed by both parties or by the purchaser only if the property is exempt from transfer duty.
  • Insolvency affidavit to be signed by both parties that they are not un-rehabilitated insolvent.
  • Matrimonial affidavit to verify marital and personal details of both parties.
  • Rates clearance certificate to be obtained by sending a signed application with the prescribed fee to the local authority. Before a certificate is issued, rates must be paid up to date to the end of the current rates year.
  • Levy clearance certificate for sectional title units - a request is sent to the managing agent of the Body Corporate with the required fee. Levies must be up to date before a clearance certificate is issued.
  • Pro-forma account issued to the purchaser advising him of the total costs payable by him with a request to sign all the documents and to pay such costs.

6. PAYMENT OF COSTS

Any delay in the payment of the above costs will stop transfer.

7. TRANSFER DUTY RECEIPT

Obtained from the receiver of revenue upon payment of transfer duty.

8. AGENTS

Once all the documentation is completed, signed and the required certificates obtained, the necessary documentation is sent to Pietermaritzburg Conveyancers “Agents” who will hold them until another 2 sets of documents reach them. I.e. bond registration documents and bond cancellation documents.

9. BOND APPLICATION

Normally attended to by the Estate Agent as soon as the sale agreement as been signed by the seller and the purchase.

10. LETTER OF GRANT

Once the financial institution is satisfied that the purchaser qualifies for the bond in all respects. It will send a letter of grant to purchaser informing him/her at the same time of any conditions relating to the bond & who the bond attorneys will be. The financial institution will instruct the bond attorneys to proceed with the bond registration.

Article by: www.dpgprop.co.za