Bond Registration and Property Transfer Process

Conveyancing is the legal process of obtaining registered and lawful ownership of fixed property - including improved and unimproved land, houses, farms and flats. As well as registration of bonds and other rights to fixed properties. It entails the transfer process from the date the deed of sale is signed to the date of payment of the finances and the delivery of the deeds.

Parties Involved in the Sale

  • Seller
  • Estate Agent
  • Purchaser
  • Transferring Attorney (appointed by the seller to transfer the property into the buyer's name)
  • Bond Attorney (appointed by the bank granting the bond to register the bond)
  • Cancellation Attorney (appointed by the bank cancelling bond of seller to cancel the previous bond)
The same attorney could be appointed to handle more than one or even all of the above transactions.

The Transfer Process

While the transfer process follows a series of successive stages, the time period involved varies considerably. Generally the following guidelines apply: - A cash transaction might take approximately 6 weeks - In normal circumstances, including bond approval, approximately 8 weeks - If conditional upon the sale of the purchaser's property (within 30 days), approximately 12 weeks.
Stage 1 - Purchase of a Property
  • Property can be sold by way of a written Deed of Sale, signed by the purchaser and the seller, as well as their spouses if they are married in community of property. Witnesses need to sign the Deed of Sale as well.
  • A verbal contract for the sale or mortgage of fixed property is invalid.
  • The Deed of Sale must be carefully examined to ensure that it accurately reflects the parties' full agreement, especially with regard to the amount payable, the method of payment, all verbal promises made by the seller or his estate agent, the incorporation of all special conditions to suit the parties' particular needs and the time of the buyer's physical occupation of the property (which may coincide with registration) and transfer of the property.
  • If physical occupation and transfer do not coincide, the deed of sale must specifically provide for occupational rental payable between the dates of occupation and transfer.
  • If the sale is subject to the buyer obtaining a bond, this must also be specified in the deed of sale, as must the period within which bond approval must be obtained to avoid the deal being delayed indefinitely.
  • Stage 1 is finalised when the Agreement/Deed of Sale is concluded/signed between the purchaser and the seller, having been brought together by the estate agent.
  • It must be noted that Estate Agents are not always a party to the sale and are therefore not compulsory to the registration process. Estate Agents have their own Deeds of Sale, although an attorney can draft one specifically suited to the needs of the parties concerned.
Stage 2 - The Deposit
Stage 3 - Bond Application/Approval
Stage 4 - Property Transfer
Stage 5 - Rates Clearance Certificate
Stage 6 - Delaying Factors

The Bond Cancellation

  • The Cancellation Attorney obtains consent to the cancellation from the bank which holds the seller's bond.
  • Lodgement at the Deeds Office After all the documentation has been signed and the costs paid, the transfer (including rates clearance certificate), new bond and cancellation bond documents are prepared by the respective attorneys for lodgement in the Deeds Office.
  • All Bond and Transfer documents are inspected by the deeds registry and if correctly prepared, come up for Registration. It usually takes approximately 2 to 3 weeks to check the documents before they are ready for Registration.
  • At this stage the purchaser must have the balance of the cash purchase price available, and the financial institution's attorneys have the bond amount available.
  • If the purchaser is not able to make the funds available, the seller's conveyancer will delay registration, which may be postponed for no more than 3 to 4 days before the deeds are rejected and will need to be re-lodged. The purchaser may then be put to terms and given 7 days written notice to rectify the default. Allow at least 12 weeks for the registration and transfer of the bond.

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