Where and how does property transfers start?
First step for the buyer is the Offer to Purchase to be accepted and thereafter the Deed of Sale to be signed by the seller.
If you are applying for a bond the following will be required from you:
- Your proof of address,
- Your ID and your income tax number. These documents are for FICA requirements.
- Proof of earnings from your employer.
- A monthly budget and
- Your personal asset and liability statement.
- Your company’s financial statements, if you are self employed.
To obtain a bond might take anything from 15 to 45 days, depending on how speedily you can supply the bank with the required documentation.
While you are waiting for bond approval, the conveyance attorney will start the procedure to transfer the property:
- First of all they will also do a FICA test.
- Applying for transfer duty and rates clearance certificates form Municipalities and Body Corporates or Home Owners Associations.
- At the same time they will contact the bond attorneys, whose task it is to issue a guarantee that the funds are available from your bank to purchase the property.
- If the purchase is financed by cash, you will be asked for a guarantee that the cash will be available when due.
Many of these procedures can run concurrently, but some must be completed before the next step can proceed. Although time frames are subject to change depending on the many variables, the average durations that you can expect the processes to take are as follows:
- To obtain bond approval: 18 days from the offer being accepted by the seller.
- To signing the documents at the conveyance attorney: 18 days from bond approval.
- To lodge the transfer with the Deeds office: 39 days from signing at the attorneys.
- To transfer the property: 14 days from lodgment at Deeds Office.
Each transfer is unique and there are many variables that can change the whole scenario as well as the time frame to registration. Under normal circumstances, this should take anything from 6 to 12 weeks from the date your offer is accepted to the date of transfer. Recently new legislation has also been heaping more and more extra obligations upon the conveyancer as well.
Other variables that could cause delays in the process are: incorrect income tax numbers, not being able to meet with attorneys timeously, outstanding municipal rates that are not paid up immediately, documents relating to the building are not available (electrical compliance certificate, NHBRC certificate, Occupancy certificate, Council Approved Building Plans and Completion Certificate), delays in the many government and municipal departments and inconsistencies between agreement of sale and bond documents such as erf numbers and suburb names.
After all of that, eventually, you will have a valid certificate proving that a specific property legally belongs to you.
Time consuming? Yes. Expensive? Yes. Worth it? Yes.