1. Purchase of Property
Buyer and seller sign the deed of sale drawn up by your estate agent or attorney.
2. Bond Approval
The purchaser or estate agent applies through the financial institution of his choice.Once the bond is approved, the bank will instruct the Bond Attorney to register the bond in the purchaser’s name.
3. Transfer of Property
(a) Seller or Estate Agent instructs Transferring Attorney to transfer the property.
(b) Attorney requests Title Deed and cancellation figures from the Seller’s Bank which holds a bond over the property.
(c) The Transferring Attorney will provide the Purchaser with a pro forma account, which must be paid upon demand when the Transferring Attorney calls for the same. Estimated rates or levy figure together with Transfer Duty /Vat will be included in this account.
(d) Bond/Transferring/Cancellation Attorneys liaise simultaneously.
(e) The Bond Attorney advises the Transferring Attorney of the amount available for guarantees, i.e. (funds made available to the purchaser for purchase of property).
(f) The cancellation Attorney is requested to cancel the Seller’s bond upon receipt of a guarantee for the outstanding amount.
(g) The Transferring Attorney receives the Title Deed and cancellation figures from the Cancellation Attorneys and sends a copy of the draft Deed of Transfer and guarantee requirements to the Bond Attorney.
(h) The Seller / Agent to provide the Transferring Attorney with an Entomologist Clearance Certificate and an Electrical Compliance Certificate.
(i) The transferring Attorney will then call upon both the Purchaser and the Seller to sign the transfer documents.
(j) The Purchaser will also be liable for a portion of the annual Rates for conventional and sectional title transfers. If it is a sectional title transfer, then the Purchaser is also
liable for a portion of the levy.
(k) The Bond Attorney prepares the Bond documents together with the account.
(l) The purchaser is then called in to sign the Bond documents and pay the Bond costs.
(m) The Bond Attorney prepares and issues the necessary guarantees and forwards them to the Transferring Attorney.
(n) On receipt of the guarantees by the Transferring Attorneys, they are then forwarded to the Cancellation Attorney who the obtains a Consent to the Cancellation from the bank which holds the Seller’s Bond.
(o) Once signature of all Bond documents has been affected by the relevant parties, including all costs paid-the-transfer, new Bond and Cancellation Bond documents are prepared by the various Attorneys to be lodged in the Deeds Office in Pietermaritzburg.
(p) Once the Transfer and Bond documentation has gone through the Deeds Office process and any queries attended to (this can take between 10 to 14 days), registration of all the matters will take place on the same day.
(q) On the date of registration, the Bank pays out the loan according to the guarantees issued. The Transferring
Attorney prepares final accounts, which will be submitted, to the Purchaser and Seller and any adjustments/refunds will be made.
(r) The Purchaser is now the official owner of the property, and the Bank holds The Title Deed while the Purchaser/Owner is indebted to the Bank. Should there not be a bond over the property, the Title Deed will be forwarded to the new Owner once released from the Deeds Office. This can take 6-8 weeks.