CONVEYANCING PROCESS IN A NUTSHELL

1.

We receive instructions from the Seller/Estate Agent on behalf of the Seller.  The Agreement of Sale is firstly perused to establish whether the agreement is subject to suspensive conditions: that is normally the approval of a loan for the purchase price/part thereof, or the successful sale of the Purchaser’s existing property;

2.

Once we have received confirmation of bond approval and/or sale of Purchaser’s existing property, we open a file, conduct a Deeds Office search to confirm ownership.  We also obtain details regarding bond/s registered over the property and to check for any interdicts/caveats recorded against the property that may adversely affect the transfer of the property to the Purchaser;

3.

To avoid delays, we call upon both Seller and Purchaser via email to provide us with all the relevant information/documentation for FICA purposes that will be required by us to prepare the transfer documents for signature by both Seller and Purchaser (see list of documents required below);

4.

We now apply for cancellation figures from the existing bondholder as well as the rates clearance figures from the relevant Municipality/Body Corporate/Home Owners Association;

Note:  As many as three different attorney firms may be involved in a property transaction.  The transferring attorney is instructed by the Seller, the cancellation attorney is instructed by the existing bondholder and the bond attorney receives instructions from the financial institution who granted a loan to the Purchaser;

5.

The bond attorney so instructed by the financial institution will liaise with the transferring attorney to request a draft deed and guarantee requirements from the transferring attorney.  The transferring attorney will normally respond to this request after receipt of cancellation figures and a copy of the Title Deed from the existing bondholder, at which point the transferring attorney will be able to prepare all the necessary transfer documentation that is to be signed by both Seller and Purchaser.  Normally two guarantees are requested from the bond attorney – one to cover the existing bondholder’s settlement figure and interest, and one in favour of the transferring attorney less interest to cover the balance of the purchase price;

6.

Both Seller and Purchaser will now be called upon to sign their documentation at the respective attorneys and the Purchaser will be called upon by the transferring attorney and bond attorney to make payment of the deposit (if not already paid) and transfer costs and bond registration costs respectively.  Once the transferring attorney received payment of the transfer costs, the transferring attorney will attend to the payment to SARS of the transfer duty payable as well as payment of the clearance figures received from the Municipality/Home Owners Association/Body Corporate to obtain the necessary clearance certificates; 

7.

The bond attorney will provide the transferring attorney with the requested guarantees.  The bond attorney will also forward all the documentation relating to the bond and signed by the Purchaser to the bank involved to obtain the bank’s “proceed” instruction.  This instruction will be issued by the bank only if the bank is satisfied that all the documentation is in order;

8.

The transferring attorney will forward the guarantee issued in favour of the existing bondholder to the cancellation attorney together with proof of payment of their cancellation fees to enable the cancellation attorney to obtain the existing bondholders consent for cancellation of the bond;

9.

When all the attorney firms are ready to proceed the documentation will be lodged simultaneously as one batch (transfer, bond cancellation, new bond) in the Deeds Office for registration. 

10.

When the documents have been examined by the Examiners in the Deeds Office and found to be in order, the documents are said to be “on prep” and registration normally follows within the next day or two.

11.

We communicate with all parties concerned throughout the process on a weekly basis via email to keep all parties abreast of the progress made with the transaction.  We advise all parties concerned when the documentation is lodged for registration, on preparation for registration and when it is registered;

12.

We account to both Seller and Purchaser normally the day after registration of transfer and will provide both with formal notification of transfer, a final account and proof of payment of any amount due to the Seller/Purchaser;

13.

Within a week or so, the registration of the transfer will be captured on the Deeds Office data system, and we provide both Seller and Purchaser with a copy of the Deeds Office Property Report confirming the change of ownership.  This report allows both Seller and Purchaser to call at the relevant Municipality to make the necessary arrangements, for the Seller to obtain a final reading/request for termination of services to the property, and for the Purchaser to open a new account, to sign a service agreement and to make payment of the deposit required by the Municipality.  Although our offices also provide a copy of the Deeds Office Property Report to the Municipality with a request that the current account of the Seller be finalised for purposes of refund of any credit due to the Seller on the account, it remains the responsibility of the Seller/Purchaser to attend to the above as it is not the responsibility of the transferring attorney to finalise the Seller’s existing account with the Municipality.  If a refund is received by our offices, it is paid into the nominated account of the Seller.

Note:  We endeavour to complete the process of registration within 6 to 8 weeks but the process may sometimes take longer due to circumstances over which we have no control such as:

  • Shortfalls on the side of the Seller;
  • The Purchaser being unable to pay the deposit and costs timeously;
  • Delays on the Municipality’s side to issue rates clearance figures timeously;
  • Attachments/Interdicts/Caveats against the property;
  • Lost Title Deeds/Mortgage Bonds;
  • Disputes regarding occupation of the property or defects to the property;
  • Agreed delayed date of registration between the parties;
  • 90 days notice period on the cancellation of a bond as required by most banks;
  • Transaction subject to registration of another/other transactions;
  • Transfer from an Estate, Insolvent Estate/Sheriff (repossessed property).

DOCUMENT REQUIREMENTS

The following documents are required by both Estate Agents and Conveyancers in a property transaction:

PRIVATE INDIVIDUALS – SELLER AND PURCHASER:

  • Identity document/Passport;
  • Proof of residential address (not older than three (3) months);
  • Income tax reference number (on a SARS issued document, if issued);
  • Marriage certificate (if applicable);
  • Antenuptial contract (if applicable);
  • Latest rates and taxes account for the property sold (Seller, required to call for clearance figures);
  • Copy of Body Corporate account (if sectional title) (Seller, required to call for clearance figures);
  • Seller to provide existing bond account number (if not completed on the Agreement of Sale) (required to request cancellation figures from existing bond holder);
  • Copy of recent bank statement to confirm banking details.

COMPANY:

  • Copy of full set of latest company registration documentation;
  • Copy of each Director/s identity document/s and share certificate/s;
  • Proof of registered address of company, not older than three (3) months;
  • Proof of physical/residential address of each Director, not older than three (3) months;
  • Tax reference number of company by way of SARS issued document;
  • Resolution of Directors if available alternatively we will prepare.

CLOSE CORPORATION:

  • Copy of full set of latest close corporation registration documentation;
  • Copy of each member’s identity document;
  • Proof of registered address of close corporation, not older than three (3) months;
  • Proof of physical/residential address of each member, not older than three (3) months;
  • Tax reference number of close corporation by way of SARS issued document;
  • Resolution of members if available alternatively we will prepare.

TRUST:

  • Copy of Trust Deed;
  • Copy of Letters of Authority;
  • Proof of registered address of the Trust, not older than three (3) months;
  • Copy of identity document of each donor, trustee and beneficiary;
  • Proof of physical/residential address of each donor, trustee and beneficiary, not older than three (3) months;
  • Tax reference number of the trust by way of SARS issued document;
  • Resolution of trustees if available alternatively we will prepare.

NOTE:  We will require the originals to be presented upon signature of transfer or bond documentation in order for us to make copies thereof to be certified by us to ensure FICA compliance.