Selling your home and wondering how the property transfer process works? Therefore, a top agent will help you navigate the process swiftly and with ease. Be sure to read “why work with a prominent estate agent“.
How the property transfer process works
- Meet with an agent. Get a free property valuation.
- Discuss the right asking price. Above, all, this must always be market-related.
- Go through the type of mandate that you are considering (sole or open) and sign to get the ball rolling.
- Your agent will want to arrange a time to get a photographer out if they don’t take photos themselves.
Fast Forward – selling your property
- Your estate agent will bring interested buyers to view your home.
- If a buyer is interested in buying your property, they will need to complete an Offer to Purchase (OTP).
- If you accept the offer as the seller, your agent will send the OTP to a transferring attorney.
- Your buyer will apply for bond finance. Most importantly, your agent can assist with this.
- The bank where your buyer has applied for finance will need to value your property.
- The transferring attorney is responsible for registering the property in the new buyer’s name.
- Your transferring attorney obtains the FICA documents (proof of address, ID documents).
- As the seller, you need to cancel your bond to avoid cancellation costs.
- Your transferring attorney will apply the transfer duty that’s payable.
- They will also apply for a rates clearance certificate from your local municipality.
- Finally, the bank where the buyer is applying for finance will select the bond attorney.
Signing the docs
- The transferring attorney will contact you as the seller to sign the bond documents.
- You may be required to sign an affidavit, a power of attorney and a transfer duty receipt.
Moreover, the registration of the transfer and also the payment of the bond amount are linked. Furthermore, both processes take place together in the Deeds Office. Finally, remember the property is the bank’s security for approving the bond to the buyer.
How long will it take?
The process in the Deeds Office can take between 6 weeks and 3 months. But, the process can take longer if there are problems like:
- If there are rates and taxes outstanding.
- Is there an outstanding invoice with Eskom.
- Finally, are your levies up to date if you live in a complex, etc?
Occupational rent is payable a month in advance. As a seller, you decide on the occupational amount. This amount is also then pro-rated. Your buyer will pay these monies directly into your bank account.
The transfer duty is a tax that is payable to SARS or the SA Revenue Service. In other words, this applies whenever ownership of a fixed property with a purchase price of more than R1,000,000 takes place. Subsequently, there are also costs that apply to the buyer which include:
- Registration feeds which are payable to the deeds office.
- Rates clearance feeds payable to the municipality.
- Professional fees which are payable to the bond and transferring attorneys.
The calculation of the rates clearance and deeds registration fees are based on the purchase price. The attorney feeds are prescribed by the Registrar of Deeds. Most importantly, attorneys must adhere to this pricing.
- Once all transfer and the bond documents are signed.
- And all the monies are paid over.
Then the transferring attorney will lodge all the required documents at the Deeds Office. In conclusion, this process only takes 8 – 10 working days. The Deeds Office examines all the documents before registration is finalised.
Team up to win with the best agent in your area
EA Connections will help you team up to win with the best real estate professionals in your area. An experienced estate agent will know how to navigate the property transfer process on your behalf. Also, the most prominent estate agents will know what is coming next in the process and more importantly, your property agent will know how to make sure the process moves head quickly.
Submit your details by clicking here and we will call you back to arrange for the top estate agent in your area to contact you. Let us help you get an accurate property valuation booked so you can get off to a good start with the sale of your property. We are here to help you sell your property fast and for the best price.