A conveyancer (also referred to as the transferring attorney) will attend to the registration of the transfer.
Once the sale agreement was signed between the seller and the buyer, the conveyancer will draft all the necessary documents, obtain transfer duty receipt (SARS), levy certificates and municipal clearance certificates.
Once all the steps were completed, the conveyancer will lodge the documents at the Deeds Office and the transfer from the seller to the buyer will be registered.
TIME PERIOD FOR A PROPERTY TRANSFER
If all goes well a property transfer can take 4 to 6 weeks,
If all goes well a property transfer can take 4 to 6 weeks, but usually, there are bonds to be cancelled and payments to be made.
If there are the usual delays (slow banks, slow Deeds office, clients who delay etc), it seems that the new 4 – 6 weeks is 3 months.
Most of the time the banks delay matters as they have their red tape that has to be dealt with by their attorneys.
There are many role players in a property transaction and if one party delays, the whole transfer is delayed.
We do our best to register a property transfer as soon as possible.
COSTS OF TRANSFER
The conveyancer gets paid by the purchaser.
The transfer costs includes the fee of the conveyancer, as well as fees for the deed’s office and usually VAT.
The fee is prescribed and is based on the value of the property.
This is a tax payable to the government on each property transaction above R900 000.
it is prescribed by legislation and calculated on the purchase price.
If the Seller is NOT registered for VAT, transfer duty is payable.
VAT (Value Added Tax)
It is irrelevant whether the purchaser is registered for VAT or not.
The determining issue is whether the seller is registered for VAT.
If both parties are registered for VAT and the property is part of a going concern, it will be a zero VAT’ed transaction.
VAT will still be payable, but it will be a zero rate.
THE ROLE-PLAYERS IN A PROPERTY TRANSACTION
The conveyancer (transferring attorney) attends to the registration of the transfer and is the director of the orchestra.
The bond cancellation attorney attends to the cancellation of the existing bond over the property.
The bond attorney attends to the registration of a new bond for the purchaser over the property.