Property Transfer and Bond Registration Steps
Do contracts have to be reduced to writing to be valid and binding?
11th Mar 2019Buying or selling a property can be confusing at times, but it does not have to be. We have set out the basic steps of the property transfer and bond registration process for you here.
These are the basic steps of a property transfer and bond registration process:
- An Offer To Purchase is drawn up by an attorney, estate agent or the parties themselves;
- The Conveyancer will request the Title Deed of the property and certain documents from the seller and purchaser to draft the transfer documents and then set an appointment for signing;
- Every transfer will require an Electrical Compliance Certificate from an electrician. Other certificates, such as Borer Beetle, Gas and Electric Fencing compliance may also be required, but your agent or attorney will take you through these.
- All outstanding rates on the property must be paid up in order for a Rates Clearance Certificate to be obtained from the Municipality. For sectional units, outstanding levies will also need to be paid up.
- Once all supporting documents are received and transfer documents are signed. The documents are sent to the Deed’s Office for examination and registration. The turn-around times for each Deed’s Office differ, but your Conveyancer will be able to give you an estimated time frame for this.
- Registration! The property is now registered the name of the purchaser and the seller is paid the purchase price.
Most complications arise when there is a bond registration or linked transfer registration involved. This usually means that more than one attorney is involved and different processes are running at the same time. Let’s break those down…
If you are purchasing a property and taking a home loan to finance the purchase, the bond registration will proceed together with the transfer process set out above. The stages of Bond Registration are set out below:
- Home loan application is granted by the bank
- Home Loan Agreement and Bond Documents are signed with the appointed Conveyancer once ID’s, insurance information, proof of residence, marital documents and any other necessary documents have been provided to the Conveyancer;
- Bond documents are sent to the Deed’s Office for examination and registration simultaneously with transfer documents;
- Registration! The simultaneous transactions will be registered together so that all payments can be made at the same time.
If you are selling your property and cancelling the bond you had over the property, a bond cancellation process will run at the same time as the above transfer process. The bond cancellation process is very simple. Generally, the seller is not even contacted by the cancellation attorney because all the details needed for the cancellation can be obtained from the transfer attorney.
If you are selling your property and buying a new property at the same time, both transfer processes can run together. This just means you’ll be signing one set of transfer documents as seller and one set as purchaser and possibly signing the home loan and bond documents as well (if your new property is financed).
Because so many people are involved with this process it can get confusing, but your Conveyancer is there to answer any questions you may have along the way and you should receive regular progress reports to ensure you know where you are in the process at all times.
We, at Pagdens, pride ourselves in reporting to our clients regularly and in a manner that makes sense. Our aim is to ensure that each client understands, and is comfortable with, the processes and steps involved in their unique transaction from start to end. We are passionate about property law and excited to be part of your transition into your new chapter! If you are considering buying or selling a property, contact us on 041 502 7200 and we can be your guide to the property transfer and bond registration process.
This article is for general information should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact an attorney for specific and detailed advice. Errors and omissions excepted (E&OE)
This article is for general information should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact an attorney for specific and detailed advice. Errors and omissions excepted (E&OE)
