Whatshot
Property Talk
Property Talk
Date: 2017-05-12
A fascinating statistic is the length of time it takes from the date a sale is concluded to the date of registration of transfer. Taking the last 92 transactions registered through our Seeff Dolphin Coast office the number of days taken to transfer averages 90.68.
I have found over many years and many sample sizes of registrations, that it always seems to average approximately 90 days. The question is then what actions can be taken by both buyers and sellers to limit delays and speed of the process.
In a nutshell the transfer process can be described as follows: An agreement of Sale is signed by the Purchaser and accepted and signed by the Seller. The appointed Conveyancing Attorney receives a copy of the agreement, opens their file and sends out the initial communication, requesting the payment of the deposit from the Purchaser into their trust account. FICA (Financial Intelligence Centre Act 38 of 2001) documents are called for from both parties.
Once the mortgage bond is approved in principle, the Conveyancer will draft the transfer documents. The Seller and Purchaser sign their transfer and bond documents.
The Conveyancers typically apply for a rates clearance certificate from the local authority, a transfer duty receipt from SARS and levy clearance certificates from the Body Corporate and Home Owners Association as the case may be. The Seller provides the Conveyancers with electrical compliance and entomologist certificates.
Once the certificates are in hand, the bond and transfer documents are all sent to and lodged in the Deeds Office. From this date it typically takes between 7 to 14 days for the transfer to be registered. Existing mortgage bonds are cancelled and the new mortgage bond registered. Finally the purchase price is transferred to the Seller, after settling the existing bond. The devil is often in the detail and delays are typically caused by items, which are easily overlooked.
Herewith are some tips to the contracting parties to ensure delays are limited:
Tip1:
Understand that the registration and cancellation of a new and an existing mortgage bond add multiple third parties and complexity to a transfer process - provide the information and sign documents as a matter of urgency when requested.
Tip2:
Prepare your FICA documents in advance and have these ready for submission knowing that the estate agent, mortgage provider and attorney will ask for these.
Tip 3:
Provide specific dates of performance in the agreement of sale. If you as a Purchaser are required to pay a certain amount by a certain date, ensure you have these funds on hand and ready to transfer and these are not invested elsewhere which may require notice periods to free up.
Tip4:
Be aware that offers that are subject to the sale of other properties may cause unexpected delays.
Tip5:
Watch out for special conditions embodied in mortgage bond approval conditions.
Tip6:
Sellers should have as built architectural plans and an occupation certificate on file and in hand.