Conveyancing

Roberts Inc does not permit your transfer to enter into a lengthy process. Rather, we have, over many years, fine-tuned our specific process(es) to make us faster than our competitors. Further to this incredible speed, we clear the funds into your account on the day of registration.

Our entire process surrounds realtors and sellers getting their funds as soon as circumstances could have permitted, with no room for the same error twice. All parties are treated in a professional and friendly manner at all times.

In the conveyancing process, it is important for the parties to know, prior to the maturing of the agreement, what costs are for their respective accounts.

Who is liable to pay for what in the transfer and sale process?

SELLER

1. Agent’s commission.
2. Penalty bond interest:-
   • if 3 months’ written notice is not given to the bank to cancel the Seller’s bond, it equates to approximately one month’s bond instalment for each completed month of notice not given (or pro rata thereof).
3. Bond Cancellation Fee (if the Seller’s property is bonded):-
   • fees range from R4000 to R5000 +;
   • if more than one bond is cancelled, the fee increases as per the applicable sliding scale;
   • Note: still applies even if the bond has a nil balance.
4. Rates and Taxes:-
   • any arrear / current amounts owing, as well as a 60 (sixty) day advance collection amount.
5. Certified Copy of Misplaced Deed:-
   • fees range from R3 000 upwards, depending on the number of deeds to be replaced.
6. VAT (Value-Added-Tax):-
   • no transfer is duty payable if Seller is VAT registered and the sale forms part of the Seller’s VAT’able enterprise;
   • the purchase price will either be recorded in contract as inclusive or exclusive of VAT.
7. Levy Amounts Owing to Body Corporate or Home Owners’ Association Certificate/s:-
8. Certificates of Compliance (COC’s)
   • electrical (no need if the seller has one, less than two years old, and no changes have been made since such time);
   • beetle (if applicable);
   • plumbing (if applicable);
   • gas (if applicable);
   • electric fence installation (if applicable).
   • Note – approximately R3 000 – R5 000 for all 5 (five) if no repairs are necessary.
9. Any Repairs Agreed to in the Agreement of Sale.
10. Financial Undertakings.
11. Bridging Finance Interest (if applicable).
12. To Directive From SARS (for withholding tax).
13. Repatriation of Funds.
14. Foreign Investment/s Abroad.

PURCHASER

1. Transfer Costs:-
   • transfer duty - payable to the conveyancers;
   • no transfer duty payable if the seller is VAT registered and the sale forms part of the Seller’s VAT’able enterprise;
   • purchase price will either be recorded in the contract as inclusive or exclusive of VAT;
   • the account to the purchaser may include the cost of obtaining a home owners’ association’s consent to pass transfer;
   • rates clearance certificate;
   • levy clearance certificate (in sectional title transfers);
   • cost of rates clearance certificate;
   • cost of levy clearance certificate (in sectional title transfers).
2. Bond Costs (if registering a bond).
3. Tripartite Agreement (if applicable).
4. Conveyancer’s Certificate in / for Title Restrictions
   • which may be required if the purchaser intends subdividing or renovating.
5. Occupational Rental:-
   • if Purchaser moves in before registration of transfer;
   • always provide for a figure in the agreement of sale, even if occupation is on registration of transfer.

Herewith a Guide to the Conveyancing Procedure in South Africa:-

An agreement to purchase immovable property must be in writing and signed by the seller and purchaser. The agreement is usually prepared by an attorney or an estate agent. The signed agreement is sent to a conveyancer of choice (an attorney specializing in property law, to attend to the registration of transfer of the property

The procedure:

On receipt of the Deed of Sale the conveyancer –

• checks the agreement carefully taking note of the suspensive conditions, financial details and relevant dates;

• conducts a Deeds Office search to confirm any mortgage bonds or interdicts against the property;

• Requests copies of:
  
  • identity documents;
  • marriage certificates and marriage contracts (if applicable);
  • a utility bill – for FICA compliance;
  • parties’ income tax number/s reflected on a SARS letterhead

• calls for the original title deed of the property which is usually held by the financial institution to whom the property is bonded. If the property is not bonded then the seller should be in possession of the title deed.

• applies to the municipality for a rates assessment if the property is freehold or to the body corporate / managing agent for a levy clearance certificate if the property is sectional title

Title Deed:-

The financial institution forwards the title deed, advises of the amount owing under the seller's bond and forwards instructions to cancel the bond to their attorney.

The bond cancellation attorney sends the title deed and guarantee requirements to the conveyancer attending to the transfer.

Cancelling Seller’s Existing Bond:-

Once the conveyancer has the cancellation figures from the bondholder of the amount owing, they will prepare the necessary documents for signature by the seller.

The conveyancer ensures that the seller is able to pay the amount outstanding to the bondholder and is required to furnish the bondholder with a guarantee.

Once the transaction is registered the conveyancer will then pay according to the guarantee.

Preparation of Transfer Documents:-

On receipt of the title deed, personal particulars and confirmation that suspensive conditions have been fulfilled, the transfer documents are prepared by the conveyancer.

A copy of the draft deed of transfer and guarantee requirements are sent to the attorney instructed to register the purchaser's bond. The conveyancer attending to the transfer may also be instructed by the financial institution to register the bond.

Signatures and Transfer Costs:-

The conveyancer makes arrangements for the transfer documents to be signed by the seller and purchaser.

At this stage, the purchaser is required to pay the pro-forma account which is an estimate of the transfer costs. Included in such an account is transfer duty or VAT payable to the Receiver of Revenue (SARS), the conveyancing fee plus VAT, rates and disbursements.

The conveyancer attends to payment of these amounts on behalf of the purchaser.

Preparation of Bond Documents, Signatures and Paying Costs:-

The bond attorney drafts the mortgage bond and arranges for the purchaser to sign and pay costs.

Included in such an account are the Deeds Office registration fee, the conveyancing fee plus VAT and disbursements.

The bond attorney ensures that the bank's requirements have been fulfilled, e.g. insurance, life cover, guarantee from employer. Guarantees for the amount of the bond are prepared and forwarded to the conveyancer.

Documents Forwarded to the Deeds Office:-

Having secured the purchase price, received the transfer duty receipt from the Receiver of Revenue and the rates clearance certificate from the municipality or levy clearance certificate from the body corporate / managing agent, the conveyancer ensures that all other conditions are met.

Lodgement:-

The conveyancer or lodging agent lodges the conveyancer's transfer documents in the Deeds Office will collaborate with the other lodging agents attending to the registration of the purchaser’s new bond and the agents cancelling the seller's existing bond.

All three sets of documents are lodged simultaneously.

Up on Prep for Registration

The linked documents are scrutinized by Deeds Office examiners, and if found in order, the conveyancer, the bond attorney and cancellation attorney are all notified that the transaction/s are to be registered the following day.

On this date the Deeds Office fee is payable, which the conveyancer will already have.

Registration of Transfer:-

The documents are registered by the Registrar of Deeds between 7 to 10 working days after lodgement, subject to extraneous variables.

This is when ownership formally passes to the purchaser and the purchaser's bond is registered.

Finalization of Accounts:-

On the day of registration, the conveyancer presents the guarantees for payment and final accounts are prepared for the seller and purchaser.

The proceeds are distributed according to the sale agreement and any other directions of the seller, and if applicable, the agent commission is paid.

Deeds Office Record and Return of Documents:-

After registration, the deeds office scans the registered documents, updates its records and returns the registered documents to the conveyancer and bond attorney after approximately 3 (three) months. This time period can vary.

Where a mortgage bond has been registered, the original title deed is forwarded to the financial institution by the conveyancer to be held as security for the loan.

Length of Procedure:-

The period it takes to register the transactions in the deeds office is dependent on various factors and a number of parties, as can be seen from the above procedure.

On average, the time taken to register a transfer is six to eight weeks, although unforeseen difficulties may cause the period to be extended.

Lost Title Deeds:-

The Deeds Office keeps a record of all property transactions. If a title deed is destroyed or lost, an application can be made to the Deeds Office for a duplicate original of the deed, at a fee.

The application is accompanied by an affidavit stating that the title deed is lost or destroyed and that a diligent search has been made for the deed.

Once the Registrar is satisfied he will then issue a certified copy of the title deed which will, for all purposes, be treated as if it were the original.