If you’re buying or selling property for the first time, the transfer process might seem a little overwhelming or confusing. Here is a list of common questions to help you understand the key steps and make the experience a bit less daunting.
A. What does a conveyancer actually do?
A conveyancer is a specialised attorney who implements the contract entered into between the buyer and seller. He/she oversees the legal work involved in transferring property ownership. They ensure all parties are verified, all paperwork is in order, manage payments like transfer duty (to SARS), clear outstanding municipal rates, obtain Home Owners’ Association Consents and lodge documents at the Deeds Office. Their job is to make sure everything is done legally and efficiently.
B. How long does a property transfer take?
Most property transfers take around 8 to 12 weeks, depending on how quickly documents are submitted and how long it takes to get rate clearance from the municipality. Once the transfer is lodged, registration at the Deeds Office usually takes about 7 to 10 working days.
C. What costs should I expect during a transfer?
There are several fees involved in the transfer process:
- Transfer duty (if applicable): a tax paid to SARS, based on the purchase price.
- Conveyancing fees: a legal fee for the work done by the conveyancer.
- Deeds Office fees: a registration fee based on the property value.
- Municipal clearance: any outstanding rates or taxes must be paid before transfer.
- Body Corporate Levy Clearances
- Home Owners Association Consents
The seller covers rates and taxes up to the date of registration, while the buyer is responsible for most of the legal and registration fees.
D. Who chooses the conveyancer?
In South Africa, the seller usually appoints the conveyancer, unless the parties agree otherwise in the contract. Although the buyer doesn’t get to choose, it’s still important for them to stay in close contact with the conveyancer to make sure all payments, documents, and obligations are handled correctly.
E. What if there are unpaid municipal charges?
The transfer cannot proceed unless a rates clearance certificate is issued by the local municipality. The seller is responsible for settling any outstanding rates and taxes before the property can be registered in the buyer’s name.
F. Can I do a property transfer without a conveyancer?
Property transfers must be handled by a registered conveyancer. It’s a legal requirement in South Africa. A conveyancer protects both parties by implementing the contract and ensuring the transaction complies with all regulations and is properly recorded at the Deeds Office.
G. What happens after the transfer is registered?
Once registered, the buyer officially becomes the legal owner. The conveyancer will provide confirmation and the new title deed. (The newly proposed eDRS system from the Deeds Office will have the result that the State will be the keeper of all titles (not the owner or bank anymore)). From this point, the buyer takes full responsibility for the property, including ongoing municipal charges and maintenance.
H. What are the buyer and seller each responsible for?
- The seller: must provide documents like the title deed and clearance certificates (as well as compliance certificates for electrical, plumbing etc).
- The buyer: must pay transfer duty (if applicable), registration fees, and sign the required legal documents.
(Delays in a property transfer process mostly occurs when one or both parties or any of the other role players (SARS, Municipality, Body Corporate or HOA) do not co-operate with the conveyancer. When all parties co-operate and respond promptly, a property transfer can be finalised in 5 – 7 weeks.
I. Why is proper registration so important?
Until the transfer is recorded in the Deeds Office, the seller remains the legal owner. If the property isn’t properly registered, the buyer cannot legally take ownership or enforce their rights to the property.
Need advice or assistance with a property transfer?
Our conveyancing team is ready to help you every step of the way, from even before you decide to sell. Contact us at info@chrisfick.co.za
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE).