When it comes to buying or selling property in South Africa, understanding the transfer
process is essential. With unique regulations and a thorough legal framework, the journey
from offer to ownership is complex yet crucial for ensuring the legality and smoothness of
transactions. In this guide, we’ll walk you through the property transfer process in South
Africa and shed light on the conveyancing laws and regulations that protect both buyers
and sellers.
1. What is Property Transfer?
Property transfer, or “conveyancing” is the legal process of transferring ownership from
one person or entity to another. In South Africa, this process is overseen by conveyancing
attorneys who specialise in property law to ensure that each step complies with legal
requirements. From drafting and reviewing contracts to lodging the transfer documents
with the Deeds Office, conveyancers play a critical role in the process.
2. Key Steps in the Property Transfer Process
The property transfer process in South Africa involves several steps, each governed by
specific laws and standards to safeguard both parties involved.
Here’s a breakdown:
Offer to Purchase
The process begins with the buyer making an offer to purchase, which, when
accepted by the seller, forms a legally binding agreement. This agreement outlines the
terms of the sale, including the purchase price, deposit, and conditions of sale.
Appointment of a Conveyancer
Once the offer to purchase is accepted, a conveyancer—typically chosen by the
seller—is appointed to handle the legalities of the transfer. Only qualified
conveyancers, who are admitted attorneys with specialised training in property law,
may attend to the conveyancing in South Africa. This requirement ensures the
integrity of the transaction and adherence to the law.
Bond Approval
If the buyer is financing the property through a mortgage bond, they must obtain
bond approval from the bank. Once the bond is approved, the bank will appoint a
bond attorney to attend to the registration of the bond over the property. This
process takes place simultaneously with the transfer of the property into the name of
the buyer.
Clearance Certificates
The conveyancer will secure clearance certificates from the local municipality to
confirm that all municipal charges, rates, and taxes on the property are up to date. If
Applicable the conveyancer will further obtain a clearance certificate from the body
corporate / home owners association to ensure all levy charges on the property are
settled in full.
Drafting Transfer Documents
The conveyancer will prepare the necessary documents, including the deed of
transfer, the power of attorney and any required affidavits or consents. Both buyer
and seller will sign these documents before they are lodged with the Deeds Office.
Lodgement at the Deeds Office
Once all documents are signed and fees are paid, they are lodged at the Deeds Office
for registration. The Deeds Office conducts a thorough examination to ensure all
documents comply with South African property laws. This process typically takes
around 7-10 working days.
Registration of Transfer
Upon successful registration, the buyer becomes the legal owner of the property, and
the title deed is updated to reflect this change. The Deeds Office will issue a new title
deed to the buyer and provide confirmation of ownership transfer.
3. How Long Does the Process Take?
The property transfer process in South Africa generally takes between 8 to 12 weeks
from the date of sale. However, the timeline may vary depending on factors like bond
approval delays, municipal clearance certificate processing times, and the efficiency of the
Deeds Office. Staying in regular contact with your conveyancer can help manage
expectations and keep the process on track.
4. Costs Involved in Property Transfer
Conveyancing fees and other costs are integral to the property transfer process. Here’s
what to expect:
Transfer Duty
Transfer duty is a tax paid by the buyer to the South African Revenue Service (SARS)
on property purchases exceeding a certain value.
Conveyancing Fees
These are fees paid to the conveyancer for handling the transfer process and are
typically calculated based on the property’s value. Conveyancing fees cover various
stages of the transfer, including preparing and lodging documents.
Bond Registration Fees
If a mortgage bond is involved, the buyer will also incur bond registration fees. This
fee is separate from conveyancing fees and is payable to the bond registration
attorney appointed by the bank.
Bond Cancellation Attorney fees
If the seller has a registered bond over the property that will need to be
simultaneously cancelled with the transfer, the seller will be liable to pay the bond
cancellation attorney fees, the bond cancellation attorney is appointed by the bank.
5. The Importance of Professional Assistance
Navigating the property transfer process can be challenging without legal expertise. A
conveyancer provides valuable guidance, ensuring compliance with South African
property law. They not only protect your interests but also facilitate a seamless transition
of ownership. Buyers and sellers are encouraged to engage with a reputable conveyancer
early in the process to avoid delays and ensure that every step is legally sound.
By staying informed and working with trusted professionals, you can navigate the
property transfer process with confidence and peace of mind.
