Property Transfer & Conveyancing: What Buyers and Sellers Need to Know
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 9 | The Property Perspective with Etchells & Young
Once an offer to purchase has been signed and a buyer's finance is in place, the property still needs to legally move from the seller's name into the buyer's name.
In Episode 9 of The Property Perspective on 919 FM, Harry is joined by Louise from MVC Incorporated to unpack the conveyancing process and explain what buyers and sellers can expect between signing the sale agreement and final registration.
In This Episode
Louise takes listeners through the property transfer process and some of the issues that can cause an otherwise straightforward transaction to slow down.
Harry and Louise discuss:
What conveyancing actually means
Why a conveyancer must have specialist qualifications
What happens after the offer to purchase is signed
Bond registration and bond cancellation
Rates, levy and homeowners association clearances
Electrical, gas and other compliance certificates
FICA and why buyers and sellers need to provide supporting documents
Common causes of delays during property transfer
Watch Episode 9
The Property Perspective airs weekly on 919 FM.
What Is Conveyancing?
Conveyancing is the legal process through which ownership of immovable property is transferred from the seller to the buyer.
Louise explains that this work is handled by a qualified conveyancer - an attorney who has completed the additional specialist requirements needed to deal with property transfers.
The process begins once the sale agreement has been signed and the necessary conditions, such as the buyer's finance, are being fulfilled.
What Happens After the Offer to Purchase?
Once the agreement reaches the conveyancing attorneys, the buyer and seller will be contacted and the necessary documentation collected.
From there, several processes may need to happen at the same time. These can include obtaining figures to cancel the seller's existing bond, preparing transfer documents, dealing with the buyer's new bond and obtaining the relevant rates and levy clearances.
Once all the requirements have been met, the documents can be lodged at the Deeds Office for registration.
More Than One Attorney May Be Involved
A property transfer can involve several different parties working towards the same registration.
Depending on the transaction, this may include the transferring conveyancer, attorneys dealing with the seller's existing bond cancellation and attorneys attending to the buyer's new bond registration.
These processes eventually need to come together so that the relevant documents can be lodged and registered simultaneously.
Why Is FICA Part of the Property Process?
Buyers and sellers are often asked for identity, address and other supporting information during a property transaction.
Harry explains that this is not simply unnecessary administration. Property practitioners and other accountable institutions have legal responsibilities around identifying and verifying their clients.
Providing the required information clearly and promptly can help prevent this part of the transaction from becoming an avoidable delay.
What Can Delay a Property Transfer?
Every transaction is different, but Louise highlights several common problems that can slow the process down.
Incorrectly completed agreements, missing documents, unresolved municipal issues and delays in obtaining clearances can all affect the transfer timeline.
She also discusses the importance of making sure the sale agreement itself has been signed correctly before it reaches the conveyancer.
What Should Sellers Prepare For?
One misconception discussed in the episode is that every cost associated with a property transfer belongs to the buyer.
Sellers can have their own costs and responsibilities, which may include cancelling an existing bond, obtaining compliance certificates and making sure municipal and levy accounts are properly dealt with.
Louise recommends that sellers start preparing for these requirements before the transfer process reaches its final stages.
Selling a Bonded Property? Plan Ahead
If there is still a bond registered over the property, sellers should establish what is required by their bank when preparing to sell.
Louise specifically highlights the importance of giving the bank the required notice for bond cancellation rather than leaving it until the transfer is already underway.
Understanding the settlement amount and any potential costs upfront can also help a seller calculate their likely proceeds more accurately.
Don't Leave Compliance Certificates Until the Last Minute
Depending on the property and the sale agreement, several compliance certificates may be required before transfer.
These can include electrical, gas and electric-fence compliance.
Louise recommends arranging the necessary inspections early enough to identify any work that may need to be completed rather than discovering a problem shortly before registration.
Keep Municipal and Levy Accounts Up to Date
Outstanding municipal accounts, levy issues or unresolved queries can become another source of frustration during the transfer process.
Harry and Louise advise sellers to deal with known account problems and keep payments up to date rather than waiting until the property has already been sold.
Preparation can help reduce both delays and unexpected amounts that need to be settled before registration.
A Key Takeaway
Property transfer is a process, not simply a final signature at the Deeds Office.
Buyers and sellers can make that process considerably easier by providing the required documents promptly, keeping accounts up to date, asking questions and dealing with potential issues before they become delays.
As Louise points out in the episode, property is likely to be one of your most valuable assets. When you are unsure, speak to the professionals involved in your transaction rather than making assumptions.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Buying or Selling Property?
A successful property transaction requires more than finding a buyer or signing an offer.
From preparing the sale agreement and coordinating with conveyancers to helping keep the transaction moving towards transfer, Etchells & Young guides buyers and sellers through the property process.
