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I bought a house - what happens next?

There are normally 3 independent transactions that take place simultaneously, namely:

A Transfer of the property from the seller to the buyer (TRANSFER ATTORNEY);

B Cancellation of the seller's existing bond over the property (CANCELLATION ATTORNEY);

C Registration of the buyer's new bond (BOND ATTORNEY).

Different conveyancers see to the different above-mentioned actions. Keep in mind that as there are 3 attorneys involved, there are three different fees to be paid: transfer- and bond fees by the buyer and a nominal cancellation fee by the seller.

 1. Steps to registration:

1.1 Either the seller or the agent provides the Transfer attorney with a copy of the Deed of Sale, where after the transfer attorney will collect all the relevant information, such as:

(a) Information about full names, identity numbers, marital status etc. from all the parties involved;

(b) Apply for cancellation figures and Title Deed from Seller's Bank;

(c) Apply for Clearance Certificate from the Municipality concerning rates and taxes;

(d) Get information from buyer concerning his new bond;

(e) Do a Deeds Search to establish if there are any interdicts registered against the property or name of the seller, as well as establish the correct property description.

1.2. SIGNING AND PAYMENT

(a) The Transfer attorney sees that the buyer pays the deposit in time;

(b) Bond is granted to the buyer;

(c) Transfer documents are drawn up and both parties are contacted to sign the relevant transfer documents;

(d) Ask buyer to pay all transfer costs and transfer duty.

1.3. BOND ATTORNEY

(a) Receive bond instructions from buyer's new bondholder (the Bank);

(b) Draw up all bond documents;

(c) Buyer signs bond documents and pay bond costs.

1.4. GUARANTEES

(a) Transfer attorney receives cancellation figures from seller's bondholders;

(b) Guarantees are requested from buyer's new bondholders as well as attorneys handling the buyer's previous transaction if he has sold a property.

1.5. BOND CANCELLATION

(a) Transfer attorneys receive guarantees;

(b) Guarantees are delivered to the Cancellation attorneys;

(c) Consent to the Cancellation of the Seller's bond are drawn up and signed by the seller's bondholders.

1.6. PAYMENT OF TRANSFER DUTY AND CLEARANCES (a) Transfer attorney pays transfer duty to the Receiver of Revenue and obtains a Transfer Duty receipt. He also pays the relevant rates and taxes to the Municipality in order to obtain a Clearance Certificate. (Both these documents will be lodged in the Deeds Office.)

 

 2. Lodging of Documents with the Deeds Office

(a) The Transfer attorney contacts the Bond Attorney and the Cancellation Attorney in order to arrange simultaneous lodging of all documents into the Deeds Office;

(b) The documents are lodged, approved by several investigators and noted in the records of the Deeds Office;

(c) Registration takes place.

 

 3. Finalizing the transaction

(a) The Transfer attorney offers the guarantees to the different institutions for payment;

(b) Transfer attorney does all the calculations, statements for seller and buyer, etc.

(c) Transfer attorneys pays the Cancellation attorney, the seller, the buyer (if any credit available) as well as the agent's commission.

 

Unforeseen circumstances may slow down the whole process, but usually it takes 12 weeks to complete the whole transaction.