ACQUIRING
Purchasing & The Transfer
What are the legal steps?
T
horough research is essential to make a sound
investment. This can be achieved through a
property valuation performed by your estate
agent, or you can download a full Property Valuation
Report for your selected property through Property24.
com.
With this research in hand, you can negotiate the
terms of the Offer to Purchase. The Offer to Purchase
contains all terms and conditions agreed upon by the
buyer and seller such as the sale being subject to bond
approval or to the sale of another property within a
specified period of time. It is also common for the
property to be sold voetstoots meaning it is sold with all
defects and faults, and therefore it is advisable to inspect
the property carefully and negotiate any necessary
repairs as part of the Offer to Purchase.
Once signed by both parties, the Offer to Purchase
constitutes the Deed of Sale and becomes legally
binding. An attorney can assist to ensure the contract
meets the necessary requirements and that the process
is smooth.
The transfer process
Step 1: The Transfer Attorney, appointed by the seller,
prepares the necessary documentation including the
Title Deed, Rates Clearance Certificate (proof from
the municipality that rates and taxes are up to date) and
www.reimag.co.za
cancellation figures from the bank, and the buyer will
pay transfer duty (for a property worth more than
R600 000) and conveyancing fees charged by the
Transfer Attorney.
Step 2: The Bond Attorney prepares the bond
documentation with the buyer, including the home loan
account.
Step 3: Once received, the Transfer attorney will
submit these documents to the Deeds Office and
the Cancellation Attorney will receive copies for
cancellation of the seller’s bond.
Step 4: Once all documents have been signed and
costs paid, the information will be simultaneously
lodged at the Deeds Office by the relevant attorneys
for verification, and once verified, all attorneys will be
notified.
Step 5: On the day of registration, the bank pays out the
home loan amount and the buyer officially becomes the
owner of the property.
As the process can be a lengthy one. Making sure that
all necessary information is submitted and all necessary
steps are taken, can avoid unnecessary delays in the
registration process.
RESOURCES
Property24
Residential Handbook 2013
31