Page 46 - Robin Twaddle PTG 2017 Digital

SALE OF PROPERTY TIMELINE

While the transfer process follows a series of successive stages, the time period involved

varies considerably. Here are some guidelines:

◆◆ Cash transactions may take 6 to 8 weeks, subject to delays at the local authority and/

or SARS and/or the Deeds office.
◆◆ In normal circumstances (including bond approval and registration), approx 2 months.
◆◆ If conditional on sale of purchaser’s property (within 30 days), approx 3 months.

Purchaser and Seller sign agreement Stage 1

◆◆ Seller to advise bank of intention to cancel bond to avoid 90 day cancellation penalty Stage 2
◆◆ Bond approved
◆◆ Fulfillment of other suspensive conditions
◆◆ Deposit paid
◆◆ Transferring, bond and cancellation attorneys instructed
◆◆ Parties to provide FICA documentation and copy of rates account
◆◆ Transfer attorney requests title deeds and cancellation figures from the bank, and prepares

transfer documents for signature by parties
◆◆ Bond attorney advises transfer attorney of amount available for guarantees

◆◆ Purchaser pays transfer costs Stage 3

◆◆ Rates clearance and valuation certificates applied for (seller pays rates and utilities to transferring

attorney). Both parties are advised to ensure that all rates arrears have been paid in full

[S118(1) and (3) of the Local Government:Municipal Systems Act (32 of 2000)]

◆◆ Transfer attorney receives title deed and cancellation figures from cancellation attorneys and

sends draft deed to bond attorney

◆◆ Bond documents prepared once draft deed received

◆◆ Cancellation attorney is requested to cancel seller’s bond on receipt of guarantees from the new

bond attorney

◆◆ Purchaser signs bond documents and pays bond registration costs

◆◆ Purchaser signs transfer documents

◆◆ Seller signs transfer documents

◆◆ Electrical, beetle, gas and electric fence certificates arranged (and plumbing, where appropriate)

◆◆ Transfer attorney pays rates/levies and transfer duty to SARS (electronically) Stage 4
◆◆ Bond attorneys send guarantees to the transfer or cancellation attorneys
◆◆ Transfer attorney obtains consent from the bondholder to cancel the seller’s bond

◆◆ Documents prepared for lodgement at Deeds Office Stage 5

◆◆ Documents lodged at Deeds Office

◆◆ Documents are checked in the Deeds Office (+10 days, regulation: 7 days)

◆◆ Purchaser must have balance of purchase price available and pay it to transfer attorney before

lodgement, or when called for in terms of the agreement

ON REGISTRATION:
◆◆ Financial institution’s attorneys have bond amount available
◆◆ Property registered in purchaser’s name. Seller’s bond cancelled. Purchaser’s bond registered