TRANSFER & BOND COSTS

The offer to purchase is the contract between the seller and buyer that dictates the terms of the property sale. Once this is signed, the home-buying process can commence, and the buyer can apply for a home loan with the bank.

STEP 1: THE OFFER TO PURCHASE

STEP 2: THE HOME LOAN IS APPROVED

The bank assesses criteria such as the home buyer’s credit record and determines whether to grant the loan. Once they approve it, the transfer process begins.

STEP 3: THE SELLER APPOINTS THE TRANSFER ATTORNEY

The buyer may have to pay for the transfer of property, but thankfully they don’t have to concern themselves with the extra admin of appointing the attorney. This is the responsibility of the seller.

STEP 4: SIGNING THE DOCUMENTS

Thankfully, much of the process is conducted by attorneys. They prepare the relevant documents, which are then signed by the seller and buyer. These include FICA documents and Power of Attorney.

STEP 5: THE PURCHASER PAYS THE TRANSFER FEE

The transferring attorney charges a transfer fee, which includes admin costs. The fee is based on the value of the property (the higher the value, the higher the transfer costs).

STEP 6: THE PURCHASER PAYS THE TRANSFER DUTY

In addition to the transfer cost paid to the attorney, there is a tax paid to SARS, dependent on the value of the property. Properties worth less than R1,100,000 are exempt from transfer duty.

STEP 7: THE TRANSFERRING ATTORNEY REGISTERS THE DOCUMENTS

The transferring attorney lodges all the required documents with the new bond and the old bond cancellation with the Deeds Office.

STEP 8: THE DEED IS REGISTERED

These are examined in 8 to 10 working days, and, provided there are no changes, the transaction is registered. The purchaser is now the rightful owner of the property!

PARTIES INVOLVED TO THE TRANSFER PROCESS

Bond cancellation attorneys

Attorneys appointed by a financial institution to attend to the cancellation of the mortgage bond registered over the property being sold by the seller.

Bond registration attorneys

Attorneys appointed by a financial institution to attend to the registration of the mortgage bond over the property bought from the seller.

Conveyancer

An attorney admitted as a conveyance by a High Court of South Africa with the prerequisite expertise and knowledge to attend to the transfer of immovable property.

Conveyancing typist

A trained typist with specialised knowledge in the administration pertaining to the transfer process.

Transferring attorneys

The attorneys appointed by the seller to attend to the transfer of immovable property.

Click here to download a PDF document that indicates transfer and bond costs.