The Conveyancing Process

Why should you be aware of what is involved in the conveyancing process?

• You are able to speed up the process by obtaining the correct documents and information needed by the conveyancer.
• The communication with the conveyancer is smoother and you are able to efficiently assist in the process. Conveyancers are not able to mislead you if they try to use feeble excuses for delays and if problems occur you are equipped to assist in solving these.
• Your relationship with the conveyancer and paralegals will improve - you communicate more efficiently and they will have more respect for you if you are aware of what their responsibilities are.  A good relationship with the conveyancer and paralegal will often lead to your property being registered quicker - never underestimate the value of this.

Ultimately this leads to a smoother, faster transfer.


In most transfers there are three processes involved :

Registration of Transfer of the Property.
Registration of a Mortgage Bond.
Cancellation of Existing Mortgage Bond.

Registration of Transfer of the Property.

Draft a new title deed and supporting documents.

• The current title deed / a copy thereof
• Details of the purchaser - full name, identity number, marital status, marital regime / co., cc, trust name and identification number.
• Ask the seller to provide you with a copy of the title deed.
• Obtain a copy of the identity document, ck document, company documents or trust deed of the purchaser and seller.
• If the purchaser/seller is married in community of property obtain a copy of the spouses identity document.
• If the purchaser/seller is married out of community of property obtain a copy of the antenuptial contract.
• If the purchaser/seller is a legal entity (co., cc, or trust) obtain a copy of the identity document of the individual signing transfer documents on behalf of the legal entity.
  

Purchase price to be secured

• Deposits due by the purchaser are to be paid.
• Obtain figures for cancellation of the sellers bond from the bank where the sellers bond is held.
• Provide the bond attorney with the figures for bond cancellation and the balance of the purchase price.
• Obtain guarantees for the purchase price and bond cancellation from the bond attorney.
• Provide the bond cancellation attorney with the guarantee to cancel the seller's bond.
• Remind the purchaser to pay the deposit and ensure she knows the bank details of the conveyancer.
• Obtain a copy of the sellers' bond statement / the name of the bank where the bond is currently held and the bond account number.
• Ensure the conveyancer has the details of the bond attorney.

Secure payment of conveyancing costs and transfer duty / VAT from the purchaser

• Always inform the purchaser in advance of the transfer costs and transfer duty / VAT payable before the transfer can be registered

Seller and purchaser to sign transfer documents

• Original FICA documents to be brought in by purchaser and seller
• Contact the parties to remind them about their appointment and the
• Documents they need to take with them

Obtain a transfer duty receipt from S.A.R.S

• Provide S.A.R.S with a transfer duty declaration by the seller and purchaser
• Make payment to S.A.R.S of the transfer duty/VAT
• Obtain the purchaser and seller's tax registration numbers
• Make sure your admin department provides the conveyancer, with a tax invoice for the commission

Obtain a rates/levy clearance certificate

• Obtain a rates assessment from the rates department .
• Obtain a levy assessment from the managing agents or body corporate for sectional title properties
• Make payment of rates/levies in accordance with the assessment
• Obtain the seller's rate number (normally found on the electricity account)      
• Obtain a copy of the seller's levy statement or details of the managing agents
• Inform the purchaser of the approximate amount to be paid in advance for rates (usually three months) or levies (varies from 1- 3 months depending on the body corporate/managing agents.
• Obtain an electrical and entomologist clearance certificate if the agreement calls for it
• Obtain payment from bank and make payment of all costs due from the proceeds of the sale such as the electrician, entomologist and the Estate Agent.
  

Registration of a Mortgage Bond.

Draft a new mortgage bond and supporting documents

• Obtain an instruction to register a mortgage bond.
• Details of the purchaser - full name, identity number, marital status, marital regime / co., cc, trust name and identification number.
• Provide the bond attorney with the details of the transfer attorney.
• Obtain a copy of the identity document, ck document, company documents or trust deed of the purchaser.
• If the purchaser is married in community of property obtain a copy of the spouses identity document.
• If the purchaser is married out of community of property obtain a copy of the antenuptial contract.
• If the purchaser is a legal entity (co., cc, or trust) obtain a copy of the identity document of the individual signing transfer documents on behalf of the legal entity.

Purchaser to sign bond documents

• Original FICA documents to be brought in by purchaser
• Contact the purchaser to remind them about their appointment and the
• documents they need to take with them

Comply with all requirements in the bond instruction which may vary.

• Some banks require electrical and/or entomology certificates, property insurance, life insurance etc
• Obtain guarantee requirements from transfer attorney
• Arrange guarantees for purchase price and bond cancellation
• Provide transfer attorney with all guarantees
• Send documents to the bank and request confirmation to lodge
• Send documents to PMB for collaboration with the transfer and cancellation attorneys, lodged in the Deeds Office and registration of the mortgage bond
• Obtain confirmation form bank to register
• Notify bank of registration so payment can be made in accordance with the guarantees
  

Cancellation of Existing Mortgage Bond.

Obtain instruction and figures from the bank to cancel the existing bond
Obtain a guarantee from transfer attorney for cancellation of the bond
Draft a Consent to Cancel the bond and have it signed (some banks allow the conveyancer to sign the Consent to Cancel depending on the amount required to cancel the bond
Send the Consent to Cancel to PMB for collaboration with the transfer and bond attorneys, lodged in the Deeds Office and cancellation of the mortgage bond