Step by step conveyancing process

By Tamaryn Campbell (Attorney l Conveyancer l Notary)

The conveyancing process includes three different attorneys:

1. Transferring Attorneys : Attorneys attending to the registration of the property;
2. Bond Cancellation Attorneys : Attorneys attending to the cancellation of the existing bond currently registered over the property; and
3. Bond Attorneys : Attorneys attending to the Bond registration instructed by the bank, in favour of the Purchaser.
   To enable you to understand the process of the different roles by the relevant attorneys, here is a step by step process for your consideration:
4. Once the Purchaser/s and Seller/s have signed and concluded an Offer to Purchase (OTP) and the Attorneys attending to the transfer have been inserted into the OTP, the parties will then be contacted by the relevant Conveyancer who will request FICA information from the Seller/s and Purchaser/s. The conveyancers will also advise all parties of the relevant due dates for the suspensive conditions.
5. If the Purchaser/s is paying cash, it will become due and payable into the Attorneys Trust Account, or a bank guarantee will be due by a certain date agreed upon in the OTP.
6. Should the Purchaser/s be buying the property by means of a Bond granted by a financial institution, the purchaser/s will be required to fulfill the suspensive condition and apply to the relevant banks within a certain period. It is important to adhere to the relevant suspensive condition’s dates stipulated in the OTP.
7. Once the quotation / approval in principle and Final Bond Grant has been issued and accepted by the Purchaser/s, the bank will appoint bond attorneys to attend to the registration of the bond. The bond attorneys will advise the transferring attorneys and provide them with an initial letter setting out what they require and what is available for the guarantees; and the transferring attorneys will apply for guarantees on behalf of the Purchaser/s from the bond attorneys.
8. If the seller/s have a current bond registered over the property, the transferring attorneys will apply for bond cancellation figures for the existing bond registered over the property on behalf of the Seller/s.
9. The offer to purchase may also refer to the Purchaser/s property being a condition of the sale. Meaning that the Purchaser/s will use the funds from their sale, to purchase the new property they are looking to purchase. Depending on the Purchaser/s affordability, the bank may also make it a requirement that the Purchaser/s property be sold, in order for the bond to be granted and registered.
10. The bond attorneys, upon receipt of the guarantees, will request the purchaser/s to sign the bond documents. Once the bond documents are signed, the bond attorneys will arrange for the guarantees to be signed and issued to the transferring attorneys. The bond attorneys are required to submit all the information to the bank. Once the bank is satisfied, they will issue the attorneys with a proceed (meaning a yes) that they may proceed to lodge simultaneously with the linked attorneys in the relevant deeds office.
11. The transferring attorneys apply for rates clearance figures from the relevant municipality. The municipality will then send forward projected rates figures which
    the seller/s are required to pay. Once payment has been made, the transferring attorneys will submit the payment to the municipality and request the rates certificate, which is required to be lodged in the deeds office. This is to ensure that all existing and historical debt will be paid, before the purchaser/s take ownership of the property.
12. The transferring attorneys will either apply for levy clearance figures from the managing agents of a sectional title scheme, or a home owners association. The forward projected figures are then paid by the seller/s and the transferring attorneys then request the relevant certificate / consent. This is to ensure that all existing and historical debt will be paid before the purchaser/s take ownership of the property.
13. The transfer documents are drafted by the transferring attorneys and the Seller/s and Purchaser/s will be contacted to sign same.
14. The bond attorneys will contact the Purchasers for signature of the bond documents.
15. Transfer costs are payable by the Purchaser/s.
16. The bond cancellation attorney’s fees are payable by the Seller/s.
17. The transferring attorneys need to obtain a transfer duty receipt or transfer duty exemption receipt from SARS. The transfer duty may either be exempt or payable by the Purchaser depending on the purchase price of the property. If the property is valued under the threshold of R1 100 000,00 then the transfer duty will be exempt Should the purchase price be above the threshold, then the purchaser will be liable for the transfer duty payment. The transfer duty receipt from SARS will be lodged together with the other supporting documents in the Deeds Office.
18. Once the transfer is ready for lodgement, the attorney will prepare the lodgement documents and contact the bond attorneys and bond cancellation attorneys to arrange lodgement in the relevant Deeds office.
19. Once the matter has been lodged in the relevant deeds office, it takes about 8 – 10 workings days until the matter will come up on preparation in the Deeds Office. Thereafter the attorneys hand in for registration if all is in order with the finances.