Buyers guide: Step 5 Registration and transfer process

Taking ownership of your new home. Understanding the legal aspects of registering your bond and transferring the property to your name.

THE 3 ATTORNEYS INVOLVED ARE:

1. Transfer attorney: Handles the transfer of the property. Selected by the seller.

2. Cancellation attorney: Cancels the seller’s existing bond. Selected by seller’s bank.

3. Bond attorney: Registers the new bond in the name of the buyer. Selected by buyer’s bank.

THE REGISTRATION AND TRANSFER PROCESS

Taking ownership of your new home - this is what happens once the attorneys run with it:

Step 1: Document assembly
The conveyancing attorney receives the deed of sale and all the necessary documents required to register the transfer of the property.

Step 2: Document preparation
Once the home loan has been approved, the conveyancing attorney prepares the documentation for signature by all parties.

The papers that have to be signed are:

• Property transfer documentation

  • Power of attorney – the seller needs to authorise the conveyancing lawyer to appear before the Registrar of Deeds on his/her behalf to register the transfer.
  • Insolvency and marital declarations.
  • Transfer duty declaration to be sent to SARS together with payment of transfer duties.

• Bond registration documentation

  • Power of attorney – the purchaser needs to authorise the conveyancing lawyer to register the bond in favour of the financial institution who granted the loan
  • Insolvency and marital declarations.
  • Standard documentation from financial institution.
    

Step 3: Payment of conveyancing costs
The conveyancing lawyer will prepare a statement of account detailing all transfer costs and bond registration costs that have to be paid.

Step 4: Documents lodged at the Deeds Office
The different lawyers involved with the property must liaise with each other to ensure that all documents are lodged simultaneously at the Deeds Office:

• Property transfer documents.
• Bond registration documents.
• Bond cancellation documents.
  

Step 5: Property is registered
The conveyancer will lodge the documents that he has prepared for registration in the deeds office. If there is a bond to be registered the bond attorney will lodge the bond documents in the Deeds Office for registration simultaneously with the transfer documents.

The Deeds Office will scrutinise the documents to ensure that they comply with all relevant legislation and regulations.

When they are satisfied, they inform the conveyancer that the transaction is ready for registration and thereupon, in the presence of the conveyancer and the Registrar of Deeds, the property is registered in the name of the purchaser. The bond is registered simultaneously.

Step 6: Purchase price is paid to the seller The parties are given final accounts reflecting the Purchase price and all adjustments on, for example, rates, levies, occupational rent and any deposits or other amounts already paid.

Step 7: Title deed released The property is now registered in the buyer’s name. All financial arrangements are usually finalised within 24 hours of registration.

Congratulations!
You are now the owner of a new home.

Now that you have your bucks in a row...
you found your new home...
you've made an offer...
your home loan was approved...
and you are a home owner...

The next step in your First-Time Home Buying Guide is "Moving tips":

1. Getting your bucks in a row
2. House hunting - Homing in on your new house
3. Doing the deal
4. Home loan know how
5. The legal aspects
6. Moving tips