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Property Transfer and Bond Registration

Transfer Process

Steps in the Transfer Process

 

 

ð Finalize the Agreement of Sale i.e. offer to purchase is accepted by the seller

 

ð The Seller nominates the transferring attorney (conveyancer)

 

ð Buyer applies for a loan from a selected bank or bond broker

 

ð Bank approves bond in principle

 

ð The banks valuation department will inspect and value the property

 

ð Guarantees from the purchasers bank are submitted to the conveyancer

 

ð The conveyancer is instructed by the purchaser to proceed with the transfer

 

ð The conveyancer will source the title deeds from the Seller

 

ð The conveyancer will apply for cancellation figures of any existing mortgage on the property

 

ð The documents are prepared by the conveyancer

 

ð The Electrical, Beetle, Plumbing and other applicable Clearance Certificates are also required in terms of the Deed of Sale arranged by the Seller and/or his Agent

ð The documents are signed by the buyer at the conveyancers office

 

ð The documents are signed by the Seller

 

ð The pro-forma transfer costs and conveyancers fees are payable by the Buyer

 

ð The financial guarantee is obtained from the Bank providing the mortgage

 

ð A rates/levy clearance certificate obtained from the necessary authorities municipality, body corporate or home owners association by the conveyancer

ð The documents are lodged at the Deeds Office

 

ð Registration takes place

 

ð The seller is paid the proceeds of sale

 

ð Commissions are paid to agencies involved

 

ð The Purchaser becomes the new owner of the Property

 

Bond Registration Process

Step 1:  Receive Instructions from the Bank

  • Receive the instruction from the Bank and contact the client to acknowledge receipt of the bond instruction.
  • Request FICA documentation from the client and/or any other documentation pertaining to the special conditions listed in the instruction.
  • A special condition could be that the bond is subject to the sale of the client’s property etc.

Step 2:  Preparation of Bond Documents

  • Where a transfer is involved, request a flysheet (copy of the Power of Attorney) and guarantee requirements from the Attorneys attending to the transfer. 
  • Check the property’s and the client’s details via a deeds office search for any interdicts, insolvencies or other caveats that may be registered against the property and/or against the client’s name.
  • In the case of a further advance, request the title deed from the Bank and prepare the bond documents for signature.

Step 3:  Signature of Documents

  • On receipt of the FICA documentation prepare the bond documents for signature.
  • Contact the client to arrange an appointment for signature.  Discuss payment of bond registration costs with the client when signing the documents.

Step 4:  Guarantees & FICA

  • Guarantees to be sent to the Transferring Attorney once the bond documents have been signed.
  • Forward all the documentation to the Bank in terms of their compliance and to receive your “may proceed” which enables you to lodge at the Deeds Office.
  • Inform the Transferring Attorney when you are ready to lodge and/or advise them whether there are any outstanding conditions that must be met before you can lodge i.e. the Bank requested a copy of the electrical certificate before issuing their “may proceed”.

Step 5: Lodgement at the Deeds Office

  • When the bond registration is linked to a transfer, the Transferring Attorney will notify you when lodgement will take place.  You cannot lodge until you receive your “may proceed” from the Bank.  All the deeds (the transfer, the bond and the bond cancellation (if the seller has a current bond over the property) must be lodged and registered simultaneously.
  • The Examination process takes on average between 10 to 15 working days, before the deeds will come up for registration in the prep room.
  • A deeds office barcode is allocated for the tracking of the bond documents in the Deeds Office once the bond is lodged.  This enables the Bond Attorney to track the bond registration process and to see where and on which level it is in the Deeds Office.  The bond will go up to level three, before it comes up for registration in the prep room.
  • Once the bond comes up for prep a period of 5 working days is available to the Bond Attorney to hand in for registration the next day.  If the Bond Attorneys does not hand in for registration the documents will be rejected and the lodgement process needs to be repeated.

Step 6:  Registration

  • The bond is registered from 10:00 in the morning by the Bond Attorney in the Execution Room.
  • On registration ownership of the property is transferred to the Purchaser, the Seller’s existing bond is cancelled (if applicable) and the Purchaser’s bond is duly registered in favour of the Bank.
  • On day of registration, the client and the Bank is informed accordingly.
  • The Bond Attorneys arrange with the Bank to release the proceeds of the bond amount in accordance with the payment instruction signed by the client.
  • The Transferring Attorney is handed a cheque at the Deeds Office and/or in the case where a guarantee has been issued, the Transferring Attorney will present the guarantee for payment at the Bank.

Step 7:  Delivery of Title Deed

  • After registration takes place the deeds are numbered and micro-filmed at the Deeds Office.
  • This can take up to 3 months.  Once the title deed is delivered to the Transferring Attorney they will send it to the Bond Attorney who will in turn send it to the Bank.   The Bank retains the title deed as security for monies lent and advanced.


INFORMATION SOURCE: ESI Attorneys www.esilaw.co.za