Buying a new home can be a daunting prospect. Attorneys need to be appointed, bonds registered and agreements signed. There’s also red tape to be waded through before a property is registered in the new owner’s name.
We offer a simple breakdown of what’s involved in transferring a property in South Africa. We also zoom in on the documents required and what costs are incurred by the buyer and seller, respectively.
Agreement of sale
Once the seller agrees to the purchase price, an agreement of sale is drawn up. This document outlines the terms and conditions of the sale, and includes:
- the purchase price
- the deposit, if any
- any conditions of the sale – for example, if a bond or the sale of an existing property is a prerequisite.
The seller signs the agreement, and the purchaser typically applies for a bond.
Cancellation of existing bond
At this stage, the seller appoints a conveyancing attorney.
The seller’s bond cancellation figures are submitted to the attorney. The bank sends the original title deeds to lawyers specialising in bond cancellation, who begin the process of cancelling the existing bond over the property.
Transfer and clearance certificates
The buyer and seller sign the Deed of Transfer drawn up by the conveyancer.
The conveyancer determines whether the rates and taxes on the property are paid up, and requests a rates clearance certificate from the municipality or city council.
Outstanding rates must be paid by the seller prior to the attorney’s request.
Payment of transfer duties
The buyer pays transfer duty to SARS, with the assistance of the conveyancing attorney. On receipt of payment, SARS issues a receipt.
The conveyancing attorney lodges all the required documents at the Deeds Office, such as:
the seller’s bond cancellation document, if relevant
- the buyer’s new bond, if relevant
- the Deed of Transfer
- the transfer duty receipt from SARS
- a rates clearance certificate.
Once the registration process is complete, the property is registered in the buyer’s name, and the seller is paid the agreed purchase price.
Documents required by the buyer
In order to satisfy FICA requirements, the buyer has to provide the following documents:
proof of residence
- certified copy of ID
- bond registration details, if relevant
- income tax number
- declaration of marital status and/or insolvency status.
The seller has to pay estate agents commission; bond cancellation fees, if relevant; and the costs of rates and utilities compliance certificates.
The buyer has to cover the costs relating to the bond registration and the transfer of the property.
For more information about transferring a property in South Africa, consider this guide to the transfer process from LegalWise.
A self-storage stop gap, for buyers and sellers
XtraSpace doesn’t facilitate property transfers or offer expert advice about real estate. But if you’ll be moving home, you might like to investigate our self-storage as a convenient solution for:
temporarily storing furniture and other household items
- storing items you plan to sell because they don’t fit or suit your new home
- protecting items that could otherwise be damaged during a move
- getting clutter out of the way.