Intro to Property Transfer Process
One of the most important aspects of the service provided by the Property Sales Agent is to ensure a smooth transfer of the property from the Seller to the Buyer. Glitches in the process can be frustrating, stressful and often costly. In employing a professionally qualified agent to manage the sale of your property, you can rest assured that they will monitor the transfer process through to completion. A substantial part of your agency commission covers the cost of this service, which can make the difference between a smooth and efficient registration of your sale and a sale which can collapse and be cancelled right up to the final date of registration.
There are a number of parties involved in the transfer process:
  • The Seller who is required to furnish all FICA documentation (Identity Document, Proof of Residence), tax number, marital documents, bond details and banking details. On request by the Transferring Attorney, the seller is required to sign and complete all relevant documentation related to the Sale. The Seller is also required to meet any special conditions which may have been noted on the Offer to Purchase, e.g., replacing the garage door motor.

    The Seller should ensure they advise their bank that the bond over the property is to be cancelled. Most banks require a minimum of 3 months notice, failing which penalties may apply.

  • The Buyer is required to furnish all FICA documentation (Identity Document, Proof of Residence) and tax number. The Buyer will also complete the documentation necessary for the bond application, which will include supplying proof of income and affordability. On request by the Transferring Attorney, the Buyer is required to sign and complete all relevant documentation related to the Sale.

    On transfer of the property, it is essential that the Buyer register with the Municipality to receive rates accounts for their newly-purchased property. This can either be done at any of the Municipal Customer Centres or can be done online on the COJ website, www.joburg.org.za

  • The Transferring or Conveyancing Attorney’s main function is therefore to coordinate the transfer of property rights and to ensure that the process is done according to legal requirements. On instruction from the Agent, the Attorney will draft all the necessary documents to ensure that the rights of all parties are protected and will then arrange for signature thereof by all the parties concerned.

  • The Bond Attorney (who may also be the Transferring Attorney) will attend to all documentation relating to the bond grant and will ensure that the Buyer complies with all legislation and requirements and that the documents are signed and lodged with the Deeds Office.

  • The Bond Originator. Whilst some Buyers opt to use the service of their personal bank, it is often advisable to employ the services of a qualified Bond Originator which often proves to be the easiest, least expensive and most productive way of applying for a home loan. A Bond Originator provides a free bond application service through all the major banks and whilst the Buyer incurs no cost for this service it can often improve the Buyer’s chances of obtaining a loan or improving the applicable lending rates.
In addition to the parties directly involved in the Transfer Process, there are a number of other external parties who are required to furnish documentation required for the transfer process:
  • The relevant Municipality who furnish the Rates Clearance documentation.
  • In a Body Corporate or a Homeowners Association, the Managing Agent will issue a Levy Clearance Certificate.
  • A registered electrician will complete an inspection of the electrical connections and mains board and will issue an Electrical Certificate of Compliance if all is in order.