Are you ready for a new home? – Part 2
Recently we discussed the requirements of financing a new property. We covered the required documents necessary to purchase a property and how the financing process works. This month we touch on the property registration process.
It frequently takes a lengthy time for a property to be registered leaving buyers and sellers frustrated. With the following explanation on, you will gain a better understanding of the lengthy process.
Step 1: Firstly after obtaining finance and the contract signed by both parties, the contract (offer to purchase) is forwarded to the transferring attorney who will confirm the legality of the agreement.
The attorney oversees compliance and fulfilment of the suspensive conditions. Once the suspensive conditions of the offer to purchase are met, the cancellation figures and title deeds are requested from the bond holder. The transferring attorney will then request municipal figures for rates and taxes.
Step 2: The next step is for all relevant parties to sign the transfer documents and pay the relevant fees. Once the transferring attorney receives the cancellation figures and title deeds, the attorney will draft the draft deed of the transfer. The transferring attorney will then request the guarantees from the bond attorney.
Step 3: The transferring attorney will send guarantees to the cancellation attorneys. On receipt thereof, the cancellation attorneys will obtain the bondholders consent to proceed with cancellation of the property. The transferring attorney will now pay the outstanding rates and taxes to the municipality in order to obtain the clearance certificates. The transfer attorney will also pay SARS to obtain the transfer duty receipt.
Step 4: Once the payments have been made, the transfer attorney will inform all parties that they are ready to lodge. All the documents are then lodged at the Deeds Office, normally registering after 12 to 14 working days. On registration thereof, the property will be transferred to the buyer’s name. The buyer is now the legal title holder of the property.
Step 5: On date of registration, the transferring attorney will present the guarantees for payment. The transferring attorney prepares the settlement accounts for the relevant parties. Delivery of deeds from the deeds office takes around 3 months. The bond attorney will then send the bond title deeds to the bond holder where he or she will acknowledge receipt of the.
In overview of the registration process, you can fully understand why the process feels as if it takes several weeks to finalise. However, this is necessary to complete your purchase. Fortunately Engel & Völkers offers a service that ensures this process is completed for the buyer to relieve all the extra stress that comes with the purchasing of a new property.
Should you have any queries regarding the purchase or selling of property, please feel free to contact us on 012 346 7777
OR sms EV ADVICE with your question and email address to 33903
Should you wish to be pre-qualified and find out what you can afford, please contact Sandy Reddy on 079 500 1954 or e-mail Sandy.Reddy@EVFinance.co.za OR sms EV PREQ with your name or e-mail address to 33903
Via Engel & Völkers