The transfer process of property can take up to 6 months. The reason for this is that there are a lot of steps that need to be followed to fully complete the process. Only when all the steps have been completed does the seller receive their money.
Let’s explain how the process works, so that you have a better understanding of why it takes so long.
Instruction
A Conveyancer receives the instruction to transfer the property of the seller.
Communication
The conveyancer will then communicate with the various role-players involved in the transfer process, such as the seller, purchaser, transfer and bond attorneys, municipality, bank, South African Revenue Service (SARS) etc.
Collection
There are certain information and documents required. These are documents such as the agreement of sale, deeds office search, existing deed, and bond cancellation figures from the bank. The conveyancer should continuously report to the various role-players about the progress being made.
Drafting and signing
As soon as all the documents and information have been successfully collected, the conveyancer will draft the transfer documents. Thereafter a request will be sent to the seller and purchaser to sign them. Included in these transfer documents will be a power of attorney and various affidavits.
Financiers
Financial arrangements include requesting an advance payment for the conveyancer’s interim account for certain expenses, requesting a bank guarantee, collecting the purchase price or deposit and so on.
Transfer Duty
This step includes obtaining a transfer duty receipt from SARS and then confirming that the tax relating to the transfer of the property has been paid by the purchaser.
Clearance certificate
Now a clearance certificate from the municipality needs to be obtained, confirming that all amounts in respect of property have been paid for the last two years.
Preparation
The conveyancer prepares for submission/lodgement of the deed of transfer and other documents necessary for registration at the deed’s office.
Registration
Once the deed of transfer and other documents have been lodged, the deeds office will make sure to investigate the documents. If the deeds office is satisfied that the requirement for the transfer of property has been met, the deed of property is registered. The conveyancer will notify the various role-players of the registration.
Accounts
Once registered, the conveyancer makes the necessary calculations and payments relating to the sale, for example, the estate agent’s commission, purchase price etc. The conveyancer’s final account is also drawn up and sent to the purchaser and the seller for payment.
A lot of steps, A lot of time.
Are you selling or planning to sell your property?
Do you really want to wait for all these steps before you receive your money?
We understand how valuable time is to you. And that is why QuickBridge provides short-term finance against the proceeds of a property sale before the registration process is completed.
Visit QuickBridge for more information.