The step-by-step of property transfers
Category Advice
After months of searching, you've found your dream property (in your first area of choice AND within your price range!). The deal is sealed but now the transfer process needs to happen.
Wait, what? The property transfer process can feel like a cumbersome administrative task but it is simpler than it sounds and is primarily handled by the property agent and the conveyancing attorneys.
"A property transfer often sounds very complex but we always assure buyers and sellers that it's a process we are very familiar with, and we're there to guide and support them every step of the way. So do lean on your property partner in this sense," says Silvana Dos Reis Marques, Principal at Leapfrog Pretoria East.
Simply put, a property transfer is the legal process of transferring ownership of a property from one party to another.
Property transfer must adhere to the terms and conditions laid out in the offer to purchase, which is a legally binding document.
The property transfer steps are as follows:
-
A transferring attorney is instructed - typically by the property agent to attend to the registration of the transfers and receive a copy of the offer to purchase.
-
The buyer, seller and agent are then contacted to submit all relevant information.
-
Next details of the existing bond are obtained from the seller, together with the bond cancellation figures - if applicable.
-
The next step is to confirm the purchase price and receive payment from the purchaser, or guarantee of the settlement from the bond attorney.
-
If all is in order the transfer documents can be signed by both parties.
-
The buyer can now pay the transfer costs.
-
The seller in turn needs to settle any outstanding municipal levies.
-
Next the bond attorney will obtain the rates and/or levy clearance certificates, obtain a transfer duty receipt from SARS and request a copy of the electrical compliance certificate.
-
When all documents are in order, the transfer will be lodged at the Deeds Office where it will be examined.
-
If the Deeds Office is satisfied with the submission, the registration will be deemed successful and the transfer of ownership of the property will be registered accordingly.
Different types of transfers
While a property transfer through sale is the most common, it is worth noting that there are other types too - most notably transfer through divorce and transfer through inheritance.
In the case of divorce the divorce order and settlement agreement determines which spouse the property is awarded to and who will be responsible for the settlement of the bond, where applicable. In terms of the Transfer Duty Act, divorce transfers are exempt from transfer duty, but it is crucial that a transfer duty exemption certificate is obtained from SARS that states the terms of the particular transfer. The two parties involved - i.e. the spouses - then need to obtain independent valuations from two different estate agents to indicate the fair value of the property for the purpose of obtaining the transfer duty exemption certificate from SARS.
In the case of inheritance, the transfer may only take place once the Liquidation and Distribution Account has been approved by the Master of the High Court and has laid open for 21 days. Furthermore, the Master of the High Court must confirm that no objections have been lodged against the intended transfer of the property.
It is only once the conditions outlined above have been satisfied, the transfer documents can be drawn up by the transfer attorneys and transfer duty exemption certificate may be obtained from SARS.
Author: Leapfrog Property Group
