Signing the offer to purchase is only the starting gun. From that moment our transfer team aligns every clearance certificate, payment, and signature so ownership changes hands without friction.
Where there is a linked (new) bond and (existing) bond cancellation
1. Agreement of Sale
- Signed by both buyer and Seller.
- Seller & Buyer legally bound in terms thereof once suspensive conditions are fulfilled.
- Seller appoints the transfer attorneys.
2. Attorneys are Instructed
- The instructed transfer attorneys will wait on the deposit to be paid by purchaser.
- The instructed transfer attorneys will wait on the purchaser to be approved for a home loan and for bond attorneys to be instructed by the bank.
- It is standard for the approval of the home loan to be made a suspensive condition of the agreement of sale. i.e the agreement will lapse if the purchaser is not approved for a home loan within a specified amount of time.
3. Attorneys will Communicate with Each Other
- Once the transfer and bond attorneys are instructed, the bond attorneys will reach out to the transfer attorneys to share required financial information on the property.
- If there is an existing bond on the property, the transfer attorneys will ensure bond cancellation attorneys are instructed.
- All the required financial information on the property will be shared amongst the attorneys involved to ensure the purchase price, estate agents commission and amounts owing to the bank are sufficiently covered.
4.Rates Clearance Certificate
- The transfer attorneys will apply to the municipality where the property is registered to obtain figures to obtain a rates clearance certificate. The City of Cape Town takes approximately 1-2 working days.
- The figures will include outstanding rates and a calculation of approximately 3 months in advance.
- This figure is required to be paid to the transfer attorneys by the seller upfront, unless alternative arrangements have been made.
- Once the amount has been settled and the required documents provided to the municipality, the rates certificate will be issued. The City of Cape Town takes approximately 3-4 working days once the funds reflect.
- A rates clearance certificate is only valid for a stipulated amount of time. The transfer attorneys have to re-apply if the certificate lapses before transfer takes place.
5. Transfer Duty Receipt
- If the purchase price of a property exceeds R1,100,000.00 (ONE MILLION AND ONE HUNDRED THOUSAND RAND) then the purchaser will pay transfer duty to SARS.
- Transfer duty is payable on a sliding scale calculated on the purchase price.
- The amount payable by the purchaser is included in the statement of account furnished to the purchaser.
- The transfer duty amount payable is received from SARS within 1-2 working days after the transfer attorneys apply.
- After the amount is paid to SARS, the transfer attorneys will receive the receipt within 1-2 working days.
- If the purchase price is less than R1,100,000.00 (ONE MILLION AND ONE HUNDRED THOUSAND RAND) then the transfer attorneys will apply for a Transfer Duty Exemption Certificate.
- Section 9 of the Transfer Duty Act 40 of 1949 sets out the other exemptions that apply to payment of transfer duty on a property transfer.
6. Home Owners Consents & Levy Clearance Certificates
- If the property is situated within a Home Owners Association or the property is sectional title, the transfer attorneys will have to get the required consents from such Home Owners Association or Body Corporate.
- These consents are mostly to ensure that all outstanding levies on the property are paid in full prior to the property being transferred.
7. Attorneys to Arrange Lodgement at Deeds Office
- The transfer attorneys will then write to the bond attorneys and bond cancellation attorneys to ascertain whether they are ready to lodge their transactions.
- These transactions will lodge and register simultaneously at the Deeds Office.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
