How to register a property

For property to be transferred, a whole process needs to be followed before property can be registered into the new home owner’s name.

The process normally commences with the buyer and seller signing an offer to purchase which is then the sale agreement.

The agreement is handed to the conveyancer together with the current title deed of the property if it is in possession of the seller.

It might be that there is a bond over the property in which case the title deed will be held by the bank, which keeps the title deed as security until the bond is paid.

It happens regularly that when a seller decides to sell his/her property, he is under the impression that if the bond is settled or paid up they do not have to incur any further costs.

If there was a bond over the property, the bond needs to be cancelled and therefore there will be bond cancellation costs to cancel the bond in the deeds office.

The conveyancing firm that is instructed to transfer the property will prepare various documents including the new Deed of Transfer that will be used to transfer the property into the purchaser’s name.

In order for the conveyancer to attend to abovementioned he will need copies of various documents that will be relied upon to prepare the transfer documents.

If the seller and purchaser are natural persons it will normally be required for both parties to provide copies of ID documents as well as a marriage certificate, if married.

If either of the parties are married out of community of property, a copy of the antenuptual agreement should also be provided to the transferring attorney.

It is also important that the parties provide the conveyancer with their income tax numbers for transfer duty purposes.

For Fica purposes both parties will be requested to provide proof of their residence.

An example would be a municipal account that will reflect both sellers or purchasers physical addresses.

It is important that a deed search is done on the property.

A deed search is a computer printout from the deeds office which contains important detail of the property.

The reason for the search is that it contains a description of the owner(s) and the property.

Furthermore, such a printout will indicate whether the property is mortgaged or not and whether there are any interdicts or caveats, against the property.

Before a property situated within the area of a local government may be transferred, all municipal rates and taxes must be paid.

The conveyancing firm therefore applies for clearance figures from the municipality, which will be loaded with rates and taxes four months in advance. This amount must be paid before the municipality will issue a clearance certificate.

The clearance certificate is lodged simultaneously with the new transfer of the property in the deeds office as proof that all rates and taxes have been paid including the advance payment.

The transferring attorney will also request cancellation figures from the seller’s bank should there be a bond over the property that requires to be cancelled.

It will therefore be advisable for the seller to provide the conveyancer with the bond account number to expedite the request for cancellation figures.

After all documents have been provided, the conveyancer will prepare the new Power of Attorney and title deed.

Various other affidavits are prepared such as a marital status affidavit, solvency affidavit, Vat vendor affidavit, no identity document affidavit , to mention a few.

If transfer duty is payable it is paid by the purchaser on the fair value of the property, which is normally the purchase price but not less than the municipal value.

After transfer duty is paid the receiver of revenue will issue a transfer duty receipt.

This is also lodged together with the transfer documents at the deeds office.

After the seller and purchaser have signed all the prepared documents and all the necessary transfer costs and duties have been paid, will the conveyancing firm be in a position to lodge the transfer documents at the deeds office in order to effect registration.

The purchasers bond (if applicable) will be lodged simultaneously with the transfer for registration.

JUST IN: EMM apologises to property owners for distributing letters with incorrect information