Steps in the registration of transfer

Introduction

After receipt of deed of sale and prior to registration of transfer there are a number of steps which must be taken. Although such steps vary from transaction to transaction, there are certain steps which are uniform throughout and we set those out below, together with a brief explanation. This is not, however intended to be an exhaustive resume of all procedures in every transaction but is intended simply as a guideline.

Procedures

  1. Upon receipt of the deed of sale, it is perused and a note is made of the suspensive and unusual conditions applicable. As the deed of sale is not enforceable until the suspensive conditions are fulfilled, such fulfilment usually precedes any of the following steps.
  2. Details are obtained from the deeds office to confirm the property description, name of the registered owner and to establish whether any bonds and/or interdicts are registered against the property.
  3. Upon receipt, and if no funds are required from Seller or Purchaser, application is made to the Local Authority for a valuation certificate and rates clearance. The reply can take a minimum of ten days but can take several weeks. The annual rates need to be paid in full before the Local Authority will issue a Rates Clearance Certificate.
  4. Beetle and Electrical Certificates are either obtained and/or checked.
  5. Application is made to the registered bondholder (if any) for the title deed and for details of amounts which may be required to cancel any existing mortgage bond.
  6. Once the purchaser’s details are confirmed, transfer documents can be drawn and submitted to the purchaser and seller for signature.
  7. If a mortgage bond is involved, the required information is sent to the Attorneys attending to the registration thereof to enable them to prepare their documents.
  8. After signature of both the purchaser and seller’s documents and once we have been put in funds, the outstanding rates are paid, a rates clearance certificate obtained and transfer duty paid.
  9. The transfer duty receipt is usually issued between two and five days after submission.
  10. Provided that the attorneys registering any new bond are ready to lodge, the documents are lodged in the deeds registry for examination.
  11. Provided that there are no additional complications, transfer should be registered between eight and twelve working days after the deeds have been lodged in the deeds registry.

On payment of the transfer duty

The transferring attorney will then pay the transfer duty and rates to SARS and the City of Cape Town respectively. Approximately 14 days after application, and once they receive the necessary receipts, the transferring attorney will be in a position to lodge.

General

  1. If rates have not been pre-paid, a short delay can result whilst outstanding rates are paid.
  2. Delays can occur as a result of the existing bondholder requiring guarantees prior to consenting to cancellation of existing mortgage bond.