12/02/2018
An explanation of the Conveyancing procedure:
Selling or purchasing your first property can be an intimidating process to some, which is quite understandable. For some it is the biggest transaction of their lives. You might be purchasing the home where you raise your family and where your children might grow up in. Understanding the process will definitely make your journey easier.
Conveyancing of a property entails the transfer of a property between a Seller, the owner, and a Purchaser. In other word the process of transferring ownership from one party, who is called the Transferor, to another, who is referred to as the Transferee.
The process starts with an Offer to Purchase signed by Purchaser in which he/she makes an offer to purchase the property he/she wishes to obtain at a certain price. Once the offer is accepted in writing by the Seller, it becomes a valid sale of property.
A transferring attorney (also referred to as a Conveyancer) is then appointed by the Seller. The transferring attorney is responsible for the following:
1. Collecting the full purchase price. In the event that the Purchaser obtained a mortgage bond as finance, it is the responsibility of the transferring attorney to collect the deposit (if any) as well as valid bank guarantees for the settlement of the balance of the purchase price.
2. Drafting all documents necessary to be signed by the parties herein, and attending to the signature thereof.
3. Requesting a clearance certificate from the local municipality. A clearance certificate is a certificate issued by the municipality, confirming that all amounts regarding the property have been paid for the last two years.
4. Obtaining a Transfer Duty Receipt from SARS. A transfer duty receipt confirms that the tax relating to the transfer of the property has been paid by the Purchaser.
5. Attend to lodgment and registration of the transaction in the relevant Deeds Office.
6. Once registered, the transferring attorney makes the necessary calculations and payments regarding the sale, for example, the estate agent’s commission and the purchase price.
7. Attending to final arrangements, which includes informing the municipality of the transfer and new ownership details as well as delivery of the new title deed to the Purchaser. In the event that a bond was registered by the Purchaser, the title deed will have to be delivered to the relevant Bank for safekeeping.
With the assistance of our firm the process does not have to be nerve wrecking. We will assist you in every step of the way.
Contact our offices for more details or for a quote on transfer costs at any time. Our dedicated staff will be more than happy to assist you.
Cloete & Neveling inc. is situated in the town of Harrismith adjacent to the N3 midway between Durban and Gauteng.
