TIPS TO SPEED-UP THE TRANSFER PROCESS
Every contract is only as
good as the parties to it. If everyone cooperates and does what is required
from them, the transfer process can usually be a speedy and painless one. Our firm has recently managed to register a
few transfers of properties within as little as 4 weeks. This was done with the
full cooperation of all parties involved. However, as soon as one of the
parties (usually the purchaser, but sometimes also the seller) delays an aspect
of the process, considerable delays usually result.
Prospective sellers and
purchasers should keep the following in mind:
- A transfer duty issued by SARS is required on transfer of every property even if the transaction if exempt from transfer duty due to its price. If either the seller’s or the purchaser’s tax matters are not in order, SARS will not issue a transfer duty receipt. Depending on the amount of applications received by SARS on its e-filling system, it could take up to 2 weeks to get a transfer duty receipt – even if every party’s tax matters are in order.
- A clearance certificate proving that municipal rates and taxes have been paid in advance and issued by the local authority within whose area the property is situated, must be lodged with every transfer. Depending on the municipality involved, it could take up to 30 days to obtain figures.
- If the property is a sectional title property or if it is situated within a secure estate a clearance certificate is required from the body corporate or the home owner’s association. Sellers should supply the Conveyancer with contact details of the body corporate and/or home owner’s association to eliminate delays.
- Our firm mostly attends to transactions at the Deeds Office in Pretoria. The turn-around time in the Pretoria Deeds Office is currently between 8-12 workdays. I have it on good authority that this is also the case in other Deeds Offices in South Africa. However, this can change in an instant. The Pretoria Deeds Office recently experienced a staff shortage which resulted in enormous delays causing deeds to take up to a month to register.
For most clients the
process is foreign and unfriendly. Here are a few tips which could contribute to
speed-up the process and not cause further unnecessary delays:
1. When the Sale Agreement (Offer to Purchase) is
concluded, supply the estate agent and the Conveyancer with copies of identity
documents, SARS Personal Income Tax numbers and copies of a recent (not more
than 3 months old) utility bill which indicates your present physical address.
2. Sellers should supply the estate agent and the Conveyancer
with the bond account number and details of the financial institution in whose
favour the property is mortgaged. The Conveyancer will then apply for
cancellation figures from the financial institution. If an incorrect bond
account number is supplied, this may cause serious delays. * See note below re
notice to banks
3. If the transaction is subject to mortgage finance, Purchasers
should assist banks or mortgage originators such as BetterBond to the fullest in
supplying them with required documents such as proof of income, copies of bank
statements and the like. It seems that in the present economic climate, banks
prefer salaried clients and mortgage loans are usually granted to these clients
within two weeks. Self-employed purchasers have to supply banks with tons of
supporting documents (including audited financial statements) and the approval
period often takes more than a month.
4. Sellers and purchasers should attempt to sign transfer
documents at the transferring attorney as soon as suspensive conditions
(granting of a bond etc) have been fulfilled.
5. Purchasers will on signature of the transfer documents
be presented with a pro forma account from the transferring attorney. This
should be paid as soon as possible by EFT.
6. Purchasers should sign bond documents at the bank’s
bond attorneys as soon as possible when requested to do so. Guarantees cannot
be issued until this is done. Purchasers should also note that they will also
be required to pay a bond account supplied by these attorneys. Failure to pay
my result in the bond attorneys refusing to lodge their deeds in the relevant
deeds office.
*Notice
to mortgage bank
Owners of property are
usually not aware of the fact that all mortgage bonds require that owners give
90 days’ notice of their intention to cancel the bond. If notice is not given,
the bank is entitled to 90 days’ additional interest calculated on the capital
amount due.
It is advisable that as
soon as owners consider selling their property, that notice is given in writing
to the bank. Ensure that written acknowledgement of the notice is received and
kept as proof. Should the property not sell, no harm would have been done except
that the bond may not be accessed during the notice period.
