The ins and outs of the property transfer process for buyers

The time when you sign on the dotted line to buy the property of your dreams and the day you are handed the keys to this property can be several months apart. Transferring immovable property from one owner to another is a time-consuming process which is managed by banks, attorneys and the Deeds Office. While its inevitable that this process will take some time, you can prevent unnecessary delays by making sure that you are ready to pay any relevant transfer duties timeously, and that all paperwork related to your purchase is in order.

To start by getting the lingo straightened out, the legal term for the transfer of immovable property is "conveyancing". In other words, conveyancers are the people who will make it possible for you to "take transfer" of your new property.

The process in a nutshell

Essentially, there are five things which need to occur in order for a property to be successfully transferred into the name of its new owner in South African law.

1. Firstly, finance must be arranged and a bond attorney appointed - for which you as the buyer will need to pay.
2. Secondly, the seller appoints a transferring attorney and finalises matters pertaining to any bond that he or she may have on the property.
3. Step three involves both you and the seller signing the transfer documents. Part of this process requires the transfer attorney to obtain clearance from the municipality to verify that all the seller's rates and taxes have been paid.
4. As the purchaser, you will need to pay any transfer duties that are owed, as well as the transferring attorney's fees. It is the transferring attorney's job at this point to ensure that all is in order with the South African Revenue Service. Good news for those buying property for a price tag of under R1 000 000 is that you won't be paying any transfer duties thanks to the threshold being raised.
5. The final step is for the transferring attorney to lodge the required documents at the Deeds Office. Once the Deeds Office has examined the relevant paperwork and given their approval, transfer takes place and it's time to plan your house-warming party!

First things first - get the paperwork together

In order to make the process between signing the papers and getting the keys move forward as quickly and smoothly as possible, you'll need to make sure that you have all the relevant paperwork pertaining to everyone who signed on that dotted line. This includes identity documents, marriage certificates, antenuptial contracts, divorce orders, proof of current residence and the like. The conveyancer is unable to begin drafting the paperwork until all these documents have been received.

Home loan applications made easy

The first thing to do after the offer to purchase has been signed - unless you are in a position to pay cash for your new home - is to apply for a home loan. This has become much easier in recent years, thanks to home loan comparison services coming into existence. Thanks to these services, you simply submit all your paperwork once, and they approach all the banks on your behalf in order to obtain the best home loan deal. Once you have a home loan signed and sealed, a bond attorney will be appointed, and he or she will draw up the relevant paperwork for you to sign.

The good news is that although the conveyancing process may be new and confusing to you, the Jawitz team have been handling it for years, and we are on hand to answer any questions that you may have at any point in the process. We make it our business to take the stress out of real estate transactions and to help you keep your eye on the prize — your beautiful new home. Contact us and we'll help you through every step of the process.