The Conveyancing Process

1.    Transfer of ownership of immovable property takes place by way of registration in the Deeds Office. The process varies slightly according to whether the property is owned under a conventional title or a sectional title.

 

2.    The conveyancer who is required to implement the sale agreement is an attorney with additional qualifications whose responsibility is to ensure that the rights of the seller and the buyer and other interested parties are protected throughout the transaction.  The conveyancer must ensure that all the “boxes are ticked” under the sale agreement before allowing registration of the transfer to take place, and also has the responsibility to manage the financial side of the sale.  This is achieved by a combination of undertakings and guarantees issued by the conveyancer which are designed to apply money from the buyer, the buyer’s sale and the buyer’s bank towards settling the seller’s payment responsibilities on the registration date so that the seller’s property is released for registration into the buyer’s name.

 

3.    The transfer conveyancer is required to collaborate with the bond conveyancers instructed by the banks on behalf of the seller and the purchaser to ensure that all of the registrations occur simultaneously in the Deeds Office, and to manage the money flows which are triggered by the registrations.

 

4.    If the seller and the buyer wish to change their deal in any material way then the changes need to be recorded in a signed addendum to the sale agreement.  This can be prepared by the conveyancer on behalf of the parties.

 

5.    A rates clearance certificate has to be obtained from the Municipality and a transfer duty receipt has to be obtained from SARS before the property transfer can be registered in the Deeds Office.  In the case of a property which is in a complex it is also necessary to get a levy clearance certificate from the managing agent, body corporate or home owners’ association.

 

6.    Once registration of transfer has taken place the conveyancer will pay the relevant parties out in terms of the various undertakings and guarantees, which include payment of the sale price to the seller, payment of commission to the estate agent, adjustment between the parties of the pre-paid property rates and occupational interest should the buyer have taken early occupation prior to the transfer date, and payment to the entomologist, electrician and other service providers.

 

7.    The registration documents will be released by the deeds office and returned to the conveyancer a few weeks after registration.  These include the property’s title deed which belongs to the new owner but which will be held by the bank if the new owner has passed a bond over the property.  Copies will be made for the new owner before the documents are handed over to the bank.