The essential steps when selling or buying a property
Step 1
The Purchaser and the Seller must sign a written Agreement which is called an Offer to Purchase, when the document is signed by the Seller this then becomes a binding Agreement of Sale.
Step 2
If the sale of the property is subject to a loan from a bank (called a mortgage bond). The sale of the property is often subject to the buyer (purchaser of the property) getting a loan.
The sale will become binding between the parties only when the bond is approved.
Step 3
If the Seller has a mortgage bond over the property, this must be repaid and cancelled. The Conveyancer will notify the Bank and give a notice of repayment to the Bank.
The Conveyancer will arrange a letter of undertaking which is called a Guarantee. This is an arrangement between the Bank granting the Purchaser’s new bond to repay the Seller’s bond when the property is registered at the Deeds Office.
Step 4
The conveyancer will arrange for the signing of additional documents that are needed to effect the registration of the transfer.
The Purchaser may have to sign the bond documents and will have to pay the costs of registering the bond and the costs of registering the transfer.
Step 5
The most important documents needed to transfer a property are:
- The Title Deed
- Cancellation figures from the Bank,
- Rates clearance certificate which serves as proof of payment for rates and taxes from the relevant municipality.
- SARS will issue a transfer duty receipt after receiving payment.
Step 6
The conveyancer will then draft the deed of sale and transfer, which will in turn be lodged with the Deeds Office.
Once all the documents have been signed and all the costs have been paid, it will be lodged at the Deeds Office by the conveyancer.
When the deed of sale is accepted by the Registrar of the Deeds Office, the conveyancer has a period of 5 days to register the purchaser’s bond and transfer. The period in which to transfer the property is a 5-day period.
Bond registration and transfer should take place on the same day.