The Property Transfer Process

What happens between signing the offer to purchase and registration in the Deeds Office.

Buying or selling property in South Africa involves several attorneys, a number of certificates and registration in the Deeds Office. Ownership passes only on registration, not when the offer to purchase is signed or the price is paid. Understanding the process helps you avoid delays and unexpected costs.

Who is involved

Clearance and compliance certificates

Transfer cannot be registered without a rates clearance certificate from the municipality and, for sectional title or estate properties, a levy clearance. Sellers typically also need an electrical compliance certificate and, depending on the property and municipality, certificates for gas, electric fencing, beetle infestation or water installations.

Transfer duty or VAT

Buyers pay transfer duty to SARS on a sliding scale above a threshold, unless the seller is a VAT vendor selling in the course of its business, in which case VAT is included in the price instead.

Common issues

We help clients with:

Step by step

A typical transfer.

  1. Signed offer to purchase
    The sale of land must be in writing and signed by the parties. Suspensive conditions, such as bond approval, must be met by the agreed dates.
  2. Instructions and FICA
    The transferring attorney receives instructions, obtains FICA documents from both parties and requests cancellation figures from the seller’s bank.
  3. Signing and payments
    Buyer and seller sign the transfer documents. The buyer pays the transfer costs and transfer duty, and guarantees for the purchase price are issued.
  4. Certificates and clearances
    Rates and levy clearances, compliance certificates and the SARS transfer duty receipt are obtained.
  5. Lodgement and registration
    The transfer, bond and cancellation documents are lodged together at the Deeds Office. After examination, they are registered on the same day and the seller is paid.

From signature to registration, a typical transfer takes around two to three months, depending on bond approval, municipal clearances and the Deeds Office’s workload.

What to prepare

Documents that help the transfer run smoothly.

Common Questions

By convention the seller appoints the transferring attorney, although the parties can agree otherwise in the offer to purchase. The banks appoint the bond attorneys.
The buyer usually pays the transfer duty and transferring attorney’s fees. The seller usually pays bond cancellation costs, compliance certificates and the estate agent’s commission.
Only on registration of transfer in the Deeds Office. Risk and benefit, such as responsibility for rates and insurance, often pass on the date agreed in the offer, which may be earlier or later.
Common causes are late bond approval, outstanding municipal rates, delays in obtaining compliance certificates, missing FICA documents and queries raised by the Deeds Office.
Only in accordance with the agreement or the law, for example where the buyer is in breach and has been given proper notice. Getting this wrong can itself be a breach of contract.

BUYING OR SELLING PROPERTY?

Our conveyancing team guides buyers, sellers and developers through every step of the transfer process.

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