Advice

CONVEYANCING

1. INSTRUCTION TO TRANSFERRING ATTORNEY AND DUTIES

  • The transferring attorney receives the Agreement of Sale from the agent/seller and attends to the perusal thereof.
  • Attorney acknowledges receipt to agents and informs them of attorney bond panel no if applicable – bank is requested to send instruction to same attorney to expedite transfer.
  • Information of property and parties are verified by means of a Deed Search in the Deeds Office.
  • Cancellation figures of existing bond and title deeds are requested from financial institution (bank) making sure the seller is not liable for early termination penalties and to furnish the new bond attorney with the necessary guarantee/s – bond account number needed.
  • Information forms as supplied to agent are perused, completed Copies of Identity Documents, future addresses, marital status confirmation (FICA) and SARS Income tax/VAT numbers are requested from both Seller and Purchaser
  • A pro-forma statement of account can be issued to the purchaser in order to inform them of the amount payable in advance to SARS for transfer duty.

2. GRANT OF BOND / QUOTATION / PRE-AGREEMENT RECEIVED

  • When the bond is granted and accepted by the purchaser, the bank appoints an attorney to register the bond.
  • The bond attorney requests guarantee requirements from the transfer attorney which can only be furnished if the cancellation figures have been received.
  • All suspensive conditions regarding deposits/occupational rent, etc are followed up by conveyancing attorney

3. PROPERTY RATES & TAXES CLEARANCE FIGURES REQUESTED

  • Rates and tax clearance figures are requested by the conveyancing attorney from the Municipality – on the rates account number provided by the Seller.
  • This amount is approximately 4 month's rates and taxes.
  • In terms of section 92 of the Deeds Registries Act a property rates clearance certificate is required prior to lodgement and transfer.
  • The Seller is responsible for this amount, and should receive a refund from the local council/Municipality if the property registers in the name of the Purchaser before the 4 months lapsed.

4. SECTIONAL TITLE: LEVY CLEARANCE FIGURES AND OR HOME OWNERS ASSOCIATION

  • Levy Clearance figures for approximately 3 months are requested as well as the cost of the certificate.
  • Different Managing Agents/Body Corporate have different policies regarding the payment and obtaining of the levy figures.
  • This certificate is compulsory for the registration of a sectional title unit as the conveyancer can only issue the Section 15(b)(3)
  • Certificate once the clearance certificate is obtained.

5. CANCELLATION FIGURES RECEIVED

  • Figures requested in 1. above has been received and the transfer attorney can now request guarantees from the bond attorney.

6. PROPERTY RATES & TAXES and or LEVY CLEARANCE FIGURES RECEIVED

  • The figures requested in 3. and 4. above have been received and can be paid to the local council and/or body corporate to obtain the clearance certificates from them.

7. DOCUMENTS DRAFTED

  • Documents can only be drawn upon receipt of the FICA documents and title deed from the bank/cancellation attorney as requested in 1. above.
  • Appointments are made with the Seller and Purchaser for signature of the transfer documents

8. TRANSFER DUTY RECEIPT OR EXEMPTION PAID/APPLIED FOR

  • The conveyancing attorney will liaise with clients and Receiver.
  • Transfer duty is payable at a specific rate determined by the Receiver of Revenue.
  • Once the necessary documents have been signed by both parties and none of them are in default with SARS, this amount is paid to SARS via the e-filing system and can take up to two weeks or longer before the receipt is issued to be lodged with our documents in the deeds Office.
  • In the case of a purchase amount being under R600 000-00 or certain matters as divorce settlement or donation or other reason, an exemption receipt will be issued.

9. LODGEMENT IN DEEDS OFFICE

  • Simultaneous lodgement is arranged with the bond and the bond cancellation attorneys when all guarantees and costs are paid/received.
  • Clients are notified of lodgement via sms/e-mail.
  • Deed, Power of Attorney, Rates/Levy Clearance Certificates and Transfer Duty receipt is lodged in the deeds office.
  • All documents are checked by 3 different levels of examiners. This can take 10-12 working days.

10. ON PREPARATION IN DEEDS OFFICE

  • On about the 8-12th day in the Deeds Office, after the examiners have approved all the documents to be in order, the deeds are put on PREP for registration.
  • During this time, 1-3 days, all finances should be finalised and proceed notifications received from the banks to proceed with registration

11. REGISTRATION

  • If all is in order with the Transfer, bond and cancellation attorneys, the deeds are executed by the conveyancer and REGISTERED in the Deeds Office. This is the date of ownership by the Purchaser.
  • Body Corporate/Municipality/Estate Agent/Seller/Purchaser are informed of registration before 13h00 on same date by sms/fax/e-mail.

12. PAYMENT OF PURCHASE PRICE/COMMISSION

  • Guarantees should normally pay out overnight on date of registration.
  • Payouts and final accounts are issued within a day or two from date of registration after receipt of payment as interest is calculated by the bank until date of payment.

13. DELIVERY OF TITLE DEEDS

  • The Deeds Office scan/microfilm all newly registered deeds and delivery thereof only happens 2-4 months after registration.
  • Original title deeds are sent to the bank for safe keeping.
  • A copy can be requested/obtained from the attorney.

PROBLEMS DELAYING THE TRANSFERRING PROCESS

  • Bond is not approved/amended instruction is issued by the bank
  • If the Purchaser or Seller is insolvent Selling price does not cover outstanding balance on bond including interest
  • If property has to be sub-divided
  • If the agreement is subject to the purchaser selling his home Interdict on the property Deceased Estate selling
  • Sale in execution Title Deed is lost Costs/deposit not paid in full
  • Contact details of Seller/Purchaser are incorrect Occupational rent not paid in advance/in full
  • Dispute between Seller/Purchaser Problem obtaining figures for rates and taxes at the local Municipality Township is opened

INFORMATION AND DOCUMENTS REQUIRED BY THE CONVEYANCER

  • Copy of Identity document, proof of residence (FICA) of Purchaser and Seller
  • SARS income tax/VAT numbers of all parties Seller/Purchaser
  • Marital status – married in/out of community (ANC contract) /decree of divorce and settlement agreement date and COUNTRY of marriage
  • Existing bond account number of seller and bank/financial institution holding deeds
  • Electrical Compliance Certificate to be submitted by Seller Parties must specify on Offer to Purchase what must remain on the property Local Municipal rates/utilities account number
  • Body Corporate/HOA contact details
  • If any –SPECIFY WHAT REPAIRS NEED TO BE MADE OTHERWISE SOLD "VOETSTOOTS"

By: GEYSER & COETZEE ATTORNEYS