There comes a point in everyone’s lives where they are faced with the dilemma and rigmarole of purchasing a property. Although it is an exciting time, it is often a prolonged process.
Being aware of the overall home buying process will help relieve a lot of your worries. It’s always best to understand each stage of the process and how it relates to another so that, in the end, you will be confident in your final buying decision.
Below is a summary of the registration process in order to have a working knowledge of what goes on behind the scenes before signing on the dotted line.
It is important to bear in mind that the services of a conveyancer are mandatory for the registration of property in South Africa, thus, you should be sure to engage the services of your personal conveyancer to protect your interests.
STEP 1: APPOINTMENT OF YOUR CONVEYANCER
Before approaching your financial institution to apply for a bond, be sure to appoint a conveyancer. Your conveyancer will ensure that all the documents needed for registering the property transfer are in order. The most important documents include the Title Deed and cancellation figures from the Bank, as well as a rates clearance certificate which serves as proof of payment for rates and taxes from the relevant municipality. Once these documents are ready, the municipality will provide your conveyancer with a rates clearance certificate and SARS will issue a transfer duty receipt after receiving payment.
STEP 2: BOND APPROVAL
Upon application of a bond by your financial institution, your bank will accordingly approve your bond application and send an electronic instruction to their Bond Attorneys to attend to the registration of the bond.
STEP 3: DRAFTING OF THE DEED OF SALE AND SIGNATURE OF TRANSFER DOCUMENTS
Your conveyancer will attend to the drafting of your deeds of sale and transfer, which will in turn be lodged with the Registrar at the Deeds Office. Your conveyancer will also request and arrange for yourself and the seller to sign the transfer documents. The purchaser normally bears the cost of the transfer and you will be liable to pay the rates, taxes, transfer duty as well as the conveyancer’s fees for attending to the transfer.
STEP 4: LODGMENT AT THE DEEDS OFFICE
Once all the documents have been signed and all the costs have been paid, the information will be lodged at the Deeds Office by your conveyancer; deeds are registered from 10h00 every morning. Deeds lodged at the Deeds Office will be allocated a barcode for tracking purposes, thus, you are able to follow up and enquire about the status of your Deed.
The Deeds Office will verify the submitted documents whereby the Registrar will examine the deed to ensure compliance with the conditions of transfer, check the legality of the transfer and confirm that proper standards of examination were applied. This process takes 7-10 days to be completed where after it shall come up for registration.
Once the Deed is deemed to be in order by the Registrar, your conveyancer has a total period of 5 days to register your bond or transfer. Furthermore, all Attorneys involved will be notified. The period in which to transfer the property on to your name will be arranged by your conveyancer and your bank’s Bond Attorneys within the 5 day period.
The final step of bond registration and transfer will take place on the same day.
STEP 6: REGISTRATION
In conclusion, the Bond Attorney arranges with the Bank to have the bond proceeds paid. Where after ownership passes from seller to purchaser. The purchaser’s new bond is registered and the seller’s existing bond is cancelled. On the day of registration, you officially become the owner of the property.
Raymond Scott | Consultant | Real Estate
Dominique Dirks | Candidate Attorney