Transferring a property can take up to three months. Here's Why !
Once a buyer has accepted an offer to purchase, the seller must produce proof that that the bond application has been successful.The seller must then appoint a transfer attorney, who will apply for cancellation figures on the seller’s bond – one to 30 days, depending on the bank. Also rates, electricity, water and refuse removal clearance figures must be obtained from the local authority.
Once the attorney has these documents, he will prepare the transfer papers. The transfer attorney requests guarantees from the buyer’s bond attorney (who is appointed by the bonding bank) and supplies a draft deed of transfer to prepare the buyer’s bond documents.The buyer and seller then sign the transfer papers at the transfer attorney’s office. Both parties must supply their original identity documents for FICA purposes and their income tax numbers. Without these, and in the event that the parties’ personal income taxes are not up-to-date, the SA Revenue Service will cancel the sale. At this stage, the buyer is obliged to pay the transfer duty, as well as the transfer attorney’s fees and expenses.
On receipt of guarantees from the bond attorney,the papers are forwarded to the cancellation attorney at the bank that holds the seller’s bond. The cancellation attorney sends the property’s original title deed to the transfer attorney.and the seller’s bank prepares and signs the consent to cancellation papers – eight to 14 days. The transfer attorney pays the transfer fee electronically to the SA Revenue Service and awaits a receipt – 14 to 35 days. He then pays the final rates and utility amounts to the local authority, body corporate or home owners’ association, and draws up new deed of transfer papers and collects all outstanding documents, including the plumbing and electrical compliance certificate. Finally the documents are processed by the Deeds Office – 10 to 15 days.
The transfer, new bond and cancellation of the existing bond are registered simultaneously and the bond attorney advises the bank once registration has happened, and the guarantees are paid over to the transfer attorney. On receipt of these funds, the transfer attorney finalises her accounts and pays the proceeds to the seller and the commission to the agent, refunding any credit that is due to the seller.
For more information on purchasing, renting or investing in commercial and industrial property in Cape Town, please contact Robert Ryll | Cell Number: 082 374 2662 | Landline: 021 552 4100 or Email: email@example.com
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