The property transfer process in South Africa, step by step

Overview

Ownership of immovable property in South Africa passes only when the transfer is registered in the Deeds Office. Signing the offer to purchase creates a binding sale, but the purchaser becomes the owner on the date of registration. The transferring conveyancer manages the process in between.

A straightforward transfer usually takes 8 to 12 weeks. It can take longer if the purchaser needs a bond, the municipality is slow to issue the rates clearance, or the property is in a deceased estate.

Step 1: The offer to purchase

A sale of land must be in writing and signed by the seller and purchaser (or their authorised agents). The offer to purchase sets out the price, the deposit, any suspensive conditions (such as the purchaser obtaining a bond or selling another property), occupation dates and the conveyancer to be appointed. Read it carefully before signing, or ask us to review it.

Step 2: Instructing the conveyancer

The seller normally appoints the transferring conveyancer. Once instructed, the conveyancer:

• obtains the title deed, or applies for a copy if the original is held by the seller's bank;
• verifies the identity of the parties as required by the Financial Intelligence Centre Act (FICA);
• requests bond cancellation figures from the seller's bank, if there is a bond, and liaises with the bond cancellation attorneys;
• requests the compliance certificates the seller must provide;
• applies to the municipality for rates clearance figures and, for sectional title or estate property, to the body corporate or home owners' association for levy or HOA clearance figures.

Step 3: The purchaser's bond and guarantees

If the purchaser is taking a home loan, the bank instructs its own bond attorney to register the bond. The bank issues guarantees for the purchase price (or the portion it is lending), which are delivered to the transferring conveyancer. Cash purchasers usually pay the price into the conveyancer's trust account, where it is invested until registration.

Step 4: Signing and payment of costs

The seller signs a power of attorney to pass transfer and related declarations. The purchaser signs a transfer duty declaration and other documents, and pays the transfer duty and transfer costs. Signing can take place at the conveyancer's office, with a local attorney or commissioner of oaths, or abroad before a notary.

Step 5: Transfer duty and clearances

• SARS issues a transfer duty receipt (or exemption) once the duty has been paid. Use our transfer duty calculator to estimate the amount.
• The municipality issues a rates clearance certificate once all charges required by law have been paid.
• The body corporate or HOA issues a levy or HOA clearance certificate.

Step 6: Lodgement, examination and registration

When all documents, guarantees and clearances are in place, the transfer is lodged at the Deeds Office together with the bond cancellation and new bond, if any. The documents are examined by the Deeds Office, which usually takes around 7 to 10 working days, and then registered. On the day of registration ownership passes, and the seller's proceeds and the agent's commission are paid out.

What the seller should do

• Provide FICA documents and the title deed details promptly.
• Arrange compliance certificates required by law or by the offer. See compliance certificates when selling.
• Notify your bank of the sale, as most banks require 90 days' notice to cancel a bond without a penalty.

What the purchaser should do

• Apply for your bond promptly if the sale depends on it.
• Provide FICA documents and pay the transfer costs when requested.
• Arrange insurance from the date of registration, or earlier if you take occupation before then.