The Legal Process

Buying and Selling Property

How the transfer process works

1.

Make/Accept an offer.

2.

See an attorny to assist with a sale agreement and the transfer of the property.

3.

The purchaser must apply for a loan.

4.

The seller needs to inform its bank that it intends setting its outstanding home loan.

5.

Purchaser's bank appoints a bond attorny.

6.

Seller’s bank appoints bond cancellation attorneys (for its existing bond).

7.

Bond attorneys provides guarantees to the transferring attorneys and cancellation attorneys for payment of the purchase price.

8.

Transferring attorneys arranges with the seller and purchaser to sign all necessary documentation.

9.

Purchaser pays transfer duty to SARS with assistance of the transferring attorneys.

10.

Seller pays the municipal clearance figures and obtain a clearance certificate (note that this could take long).

11.

Seller arranges an electricity/gas certificate.

12.

Purchaser’s bank provides consent to the bond attorneys to register the bond.

13.

Seller’s bank provides consent to the cancellation attorneys to cancel the existing bond.

14.

The transferring attorneys, bond attorneys and cancellation attorneys registers the transactions in the deeds office simultaneously.

Important Information for Buyers

Make the right offer.

Know your market and make sure you do not offer too much or too little. Your estate agent should be able to help here.

Check whether the property has building plans.

Check your sale agreement.

Make sure you are happy with the terms of the sales agreement, your whole transaction is based on this document.

Trust the transferring attorneys.

Get a loan.

Apply with all the banks to increase your chances of getting a loan and ensure that you get the best deal. Although a bond originator could help with this process, first speak to you banker and attorney.

Your Bond Attorney

Find out who the bank appointed as bond attorneys and get into contact with them as soon as possible. Send them everything they need to transfer the property ASAP.

Check the Certificates.

Check the municipal clearance certificate and electricity certificate and make sure you are happy with it. Specifically check whether the municipality is paid up to date, or whether they have only been paid for the last 2 years (that is the minimum requirement to transfer a property).

Check the Garauntees.

Check the guarantees to make sure where the money you have loaned will go to. Remember the bank pays these amounts directly to the recipients and not into your account first.

Important Information for Sellers

Set your price right.

Ask the estate agents to help you with a valuation and trust their valuation. Try to obtain a bank valuation, so you know that the valuation would be acceptable to the purchaser’s bank.

Ensure all building plans for the property is in order.

Check your sale agreement.

Make sure you are happy with the terms of the sale agreement, your whole transaction is based on this document.

Give notice to your bank.

Give notice to your current bank that you intend paying off your home loan. Some banks require a 3 three month notice period, failing which penalties could be payable.

Cancellation Attorneys

Find out who the bank appointed as cancellation attorneys.

Appoint transferring attorneys.

Remember the rule of thumb is that the seller is entitled to appoint the transferring attorneys.

Get your municipal account in order.

Make sure the municipality has the latest water and electricity readings, and that the municipal deposit is paid in full. The transferring attorneys will assist to request clearance figures, but the seller should try to limit any possible surprises.

Arrange the Certificates

Arrange an electricity- and gas certificate from a qualified professional.

Bank Gaurentees

Make sure the bank guarantees provided by the purchaser’s bank is in order.

Stay In Contact

Be in contact with your transferring attorneys on an ongoing basis.