The Conveyancing Process – South Africa
When buying or selling a house ownership of the property’s title deed needs to change hands. This is called the conveyancing process – here is an outline of that process when buying or selling a house in South Africa.
DEED OF SALE is drafted and signed by both the SELLER and the PURCHASER. The PURCHASER will apply for a BOND through a financial institution, and/or deliver GUARANTEES to secure the purchase price.
Once a BOND is APPROVED, the attorneys receive the LETTER OF GRANT/QUOTATION/ PRE-AGREEMENT. Electronic instructions will follow.
Attorneys apply for and receive CANCELLATION FIGURES for the SELLER’S bond as well as CLEARANCE figures from the local authority valid for six months. (In terms of Section 118 of the Municipal Systems Act). The costs to obtain these varies. If sectional title, additional figures are obtained from the body corporate.
Attorneys prepare the BOND, TRANSFER and FICA documentation. PURCHASER to sign the BOND, TRANSFER and FICA documentation. SELLER to sign TRANSFER and FICA documentation only.
PURCHASER pays TRANSFER COSTS. TRANSFER DUTY is payable to SARS when the property is transferred from one party to another. (Please refer to the TRANSFER DUTY table). When VAT is payable, TRANSFER DUTY will not be applicable.
SELLER pays the RATES & TAXES up to the date of REGISTRATION, as well as the COSTS TO CANCEL their existing BOND, if applicable.
Attorneys receive TRANSFER DUTY RECEIPT from SARS, CLEARANCE CERTIFICATE from local authority or CLEARANCE and INSURANCE CERTIFICATES from Body Corporate.
INSTRUCTION is sent to the lodging attorney. If the TRANSFERRING, BOND and CANCELLATION attorneys are all ready, documents are lodged simultaneously at the DEEDS OFFICE.
OCCUPATIONAL RENT is payable to the SELLER, should occupation be taken before REGISTRATION. OCCUPATIONAL RENT is normally payable to the CONVEYANCER who will in turn pay the SELLER on the DATE OF REGISTRATION. If the SELLER occupies the property after registration, OCCUPATIONAL RENT is payable to the PURCHASER.
PREPARATION and REGISTRATION takes place 10 – 15 working days after LODGEMENT.
Leeuwmer Maritz situated in Johannesburg is many years of experience with this process and is able to assist you with the minimum of fuss and bother. Contact Leeuwmer Maritz Attorneys today.
Download our handy guide to the conveyancing process here.