Buying or selling a home is an exciting milestone, but things can feel a bit unclear when it comes to the legal process. Who is responsible for what? What are the legal steps? And how long does it all take?
A qualified transferring attorney plays a central role in guiding the process and ensuring everything is handled correctly and legally. Here’s a step-by-step explanation of how the property transfer process works and what to expect along the way.
What is a property transfer?
A property transfer is the legal process of moving ownership of a property from one person (the seller) to another (the buyer). In South Africa, this process can only be handled by a qualified transferring attorney, also known as a conveyancer.
Once a property is sold, the transferring attorney is responsible for ensuring the transaction is completed legally and correctly, from drafting documents and paying duties to lodging at the Deeds Office and registering the new ownership.
Step-by-Step: The property transfer process
While the details can vary, the typical property transfer process follows these steps:
1. Agreement of sale
The process begins when the buyer and seller sign the agreement of sale. The transferring attorney receives the contract and confirms instructions with both parties and the estate agent. The deposit is called for and invested (if applicable).
2. Bond cancellation and deposit
If the seller has an existing bond on the property, cancellation instructions are requested from their bank. It’s important to note that banks require 90 days’ notice to cancel a bond, otherwise, penalty interest may apply.
3. Follow-up on suspensive conditions
Any suspensive conditions (e.g. bond approval, sale of the buyer’s property) are closely monitored by the attorney to ensure they are fulfilled before proceeding.
4. FICA and information collection
The attorney obtains FICA documents and any other relevant information from both buyer and seller, and the transfer documents are drafted to reflect the terms of the agreement.
5. Clearance figures
Rates clearance figures are requested from the municipality. If applicable, levy figures are also requested from the body corporate or homeowners’ association, along with any required consents.
6. Guarantee requirements and draft transfer deed
The Transferring Attorney liaises with the bond attorneys, providing them with guarantee requirements and a draft deed of transfer.
7. Signatures and payments
The buyer signs bond documents (if applicable) and pays the required transfer costs, including transfer duty. The seller signs their portion of the transfer documents and pays advance municipal rates. The Transferring Attorney manages these payments and applies for the rates clearance certificate.
8. Payment of transfer duty
Transfer duty is paid to SARS upon receipt from the purchaser.
9. Compliance certificates from the seller
The seller must provide all required compliance certificates, which may include electrical, plumbing, beetle, gas, and electric fence certificates, depending on the type of property.
10. Guarantees and FICA finalisation
The Transferring Attorney confirms that all bank guarantees are in place and that the FICA documentation for both parties is complete.
11. Title Deed and rates clearance certificate
Once the attorney has received the transfer duty receipt and the rates clearance certificate, they request the original Title Deed from the seller. If there is an existing bond, the bond cancellation attorneys obtain the Title Deed from the bank.
12. Lodgement at the Deeds Office
The documents are lodged at the Deeds Office. The examination process typically takes 10 to 14 working days. Once the documents are ready, they come ‘up’ for ‘Prep’, and attorneys have 5 days to register the transaction. If this deadline is missed, the deeds are rejected and must be re-lodged.
13. Registration
On the day of registration, the conveyancer appears at the Deeds Office to execute (sign) the deeds in front of the Registrar of Deeds. If the transaction is linked to a bond registration or cancellation, all matters are registered simultaneously.
14. Disbursement of funds
The proceeds of the transaction (including the estate agent’s commission and the seller’s balance) are disbursed on the day of registration or the following morning, once confirmation is received from the Deeds Office.
15. Delivery of the Title Deed
Roughly three months after registration, the Deeds Office releases the original Title Deed to the Transferring Attorney, who arranges delivery either to the buyer (if there is no bond) or to the bank (if a bond was registered).
A trusted team to guide you
Understanding the property transfer process can make all the difference when you’re navigating a sale or purchase. With Charl van der Merwe Attorneys by your side, you can expect practical support, clear timelines, and a team that keeps you informed every step of the way.
Need help with a property transfer? Contact us to speak to our team — we’re here to make the process smoother and simpler.
The Bond Process
- The attorney receives the bond instruction electronically from the bank.
- The client is contacted to confirm receipt of the instruction, and the attorney will request all personal information and documentation.
- In most instances, a bond is linked to a transfer. In those circumstances, the bond attorney will contact the transfer attorney to request their draft deed of transfer, FICA and guarantee requirements. A deeds office search is conducted on both the clients and the property.
- On receipt of the draft deed of transfer and guarantee requirements, the bond documents are drafted and an appointment is scheduled with the client to sign the documents. The client is issued with an invoice for the conveyancing fees.
- The signed bond and FICA documentation are sent to the bank to obtain a “proceed to lodge” from the bank.
- The guarantees will be forwarded to the transferring attorney after the signature of the bond documents.
- Once all the bank conditions are met and a “proceed to lodge” has been received by the attorneys from the bank, the bond is lodged at the Deeds Office. If the bond is linked to a transfer, lodgment of the bond is subject to the scheduled transfer date of the property and the transfer attorney being ready to lodge. The transferring attorney controls the timing.
- The deeds office takes approximately 10-14 days to examine the deeds. Thereafter, the deeds come “up” for Prep. Once “up” for Prep, the conveyancer has 5 working days to register, failing which the transaction will have to be ‘relodged’.
- On registration, the bank is notified of registration and requested to disburse the bond proceeds in terms of the payment instruction, which would have been signed together with the bond documents.
- Delivery of the title deed and bond from the deeds office can take approximately three months. If the bond is linked to a transfer, the title deed and the bond are delivered to the bank. Alternatively, only the bond is delivered to the bank.
Who Pays for What in the Sale and Transfer Costs?
SELLER
- AGENTS COMMISSION
- PENALTY BOND INTERESTS
- If three months’ written notice is not given to the bank to cancel the Seller’s bond, a cancellation penalty is payable. This equates to approximately one month’s bond instalment for each completed month of notice not given (or pro rata thereof)
- BOND CANCELLATION FEE: (IF PROPERTY IS BONDED)
- Fees range from R5000 to R6000
- If more than one bond is cancelled, the fee increases as per the applicable sliding scale
- NOTE: Still required to cancel the bond registration, even if the bond has a nil balance
- RATES AND SERVICES
- Any arrears, current amounts owing and a 60-day advance collection amount.
- CERTIFIED COPY OF MISPLACED TITLE DEEDS
- Fees range from R5500 upwards, depending on the number of deeds to be replaced.
- LEVY AMOUNTS OWING TO BODY CORPORATE OR HOMEOWNERS’ ASSOCIATION
- COMPLIANCE CERTIFICATES
- Electrical (in order if issued under 2 years ago and no changes made to the installation)
- Beetle (if applicable)
- Plumbing (if applicable)
- Gas (if applicable)
- Electric Fence installation (if applicable)
- Approximately R3000 for all 5 if no repairs are necessary.
- ANY REPAIRS AGREED TO IN THE CONTRACT
- OTHER
- Financial undertaking for seller
- Bridging finance for sale
- Obtain directive from SARS (withholding tax scenario)
- Repatriation of funds
- Foreign investment abroad
BUYER
- TRANSFER COSTS
- Conveyancing fees, as per tariff
- Transfer duty – payable to the conveyancers approximately a month before transfer
- No transfer duty is payable if the seller is VAT registered and the sale forms part of the seller’s VATable enterprise.
- The purchase price will either be recorded in the contract as inclusive or exclusive of VAT
- BOND COSTS (IF REGISTERING A BOND)
- TRIPARTITE AGREEMENT (IF APPLICABLE)
- CONVEYANCERS’ CERTIFICATES RE: TITLE RESTRICTIONS
- May be required if the purchaser intends to subdividing or renovating
- OCCUPATIONAL RENTAL
- If the purchaser moves in before transfer
- Always try and provide a figure in the Agreement of Sale, even if the occupation is on transfer.
- PLANS
- If the agreement does not oblige the seller to deliver copies of approved plans, the purchaser has to incur costs.
Questionnaire for Agents
Asking The Right Questions Will Prevent A Delayed Transfer
- FICA for seller and purchaser – ID and proof of residence, less than 3 months old, etc.
- Confirm/verify the marital status of the seller and purchasers.
If married by foreign law, ascertain where the husband was domiciled at the time of the marriage. - IF either party is a company or a close corporation:
(1) Is there a resolution in place authorising the signatory to sell or buy?
(2) Is the company still in business on the register of companies, or has it been deregistered? - IF either party has a power of attorney for a third party to sign on their behalf:
Request a copy and ensure that it is dated before the date of sale. - Are there any latent defects?
Ask your seller to make you aware of any defects, such as dampness, leaks, etc. Record these in the Property Condition Report.
Discuss this with the purchaser and ascertain whether the purchaser accepts this or if repairs are to be done. This is to be noted in the sale agreement. - Coastal properties – Please note that a Beetle Certificate is required.
Note that an inspection must be done after the sale unless the sale agreement stipulates that it would be valid for a period before the date of sale.
- Did you know that a Water Installation Compliance Certificate is required for properties in the jurisdiction of the City of Cape Town municipality?
- Has the seller given notice to the bondholder to cancel the bond?
IF NOT, then provide them with the bond cancellation notice period.
If the property is unbonded, does the seller have the original title deed? - Has there been a change in the seller’s marital status since taking ownership? (Married, divorced or widowed)
- IF either party is a TRUST:
Get a copy of the latest Letters of Authority, as there must be a resolution signed by all trustees binding the trust to the agreement of sale. Alternatively, all the trustees must sign the agreement of sale. If not, the agreement will be invalid. - PLEASE NOTE – A purchaser can only sign as a trustee once the trust has been formed.
The sale agreement will be deemed invalid if they sign for a trust still to be formed. - Is your seller a non-resident for tax purposes?
Then possible withholding tax may apply where the purchase price is over R2 million. Applies to individuals and/or entities.
- Sectional title properties:
Ascertain if there is a special levy payable. This is payable by the seller if raised before the transfer, unless the sale agreement stipulates otherwise. - Are the seller’s rates and tax account up to date?
- Is there a tenant in the property?
Get a copy of the lease and ascertain whether the tenant is staying or going. Deal with it in the sale agreement. - Was the Property Condition Report obtained, signed, and shared with the purchaser?
- Is an Electrical Compliance Certificate in place (i.e. one that is less than 2 years old)?
If not, a new inspection and certificate is required. - If the property has an electric fence, then make your client aware that they would have to provide an Electric Fence Installation Compliance Certificate.
- Is your seller a VAT vendor?
If so, is it a VATable sale? - Has your seller or purchaser ever been provisionally or finally sequestrated or liquidated?
- Are there any restrictive title conditions?
Get a copy of the title deed from the Deeds Office or seller and present it to the purchaser to obtain their acknowledgement and acceptance thereof (Contact us to discuss any arduous clauses). - Newly built sectional title unit:
Check if a right to extend has been reserved in favour of the developer. The purchaser must be made aware and confirm that they want to remain bound to the agreement. - Get the details of the homeowners’ association or body corporate to confirm that they are not insolvent.
- Is the income tax of the seller and purchaser up to date?
- Are approved building plans in place for all improvements on the property?
- Gas Certificate of Compliance:
- This is required where there is a gas installation on the property. This certificate must be obtained for each transfer.
- Only electronic certificates are deemed to be valid.
- This is to be issued before occupation or transfer.
Opening And Closing Of Municipal Accounts
Seller
ESKOM (electricity not charged on your City of Johannesburg Account)
- www.eskom.co.za or 0860 037 566
- On the date of occupation, call Eskom and request that your account be closed. They will require your meter reading for this.
Refund: After the account has been closed, the deposit will be paid out. Refunds are paid within 3 months, although this period may be delayed in certain cases.
City of Johannesburg Account
- See the attached infographic of the regional office and its contact details.
- Refer to the local authority’s regional offices between 8 to 10 weeks after registration. They will require the following to close the account:
- Seller’s identity document
- Letter from the conveyancer confirming registration
- A copy of the rates clearance figures, proof of payment and clearance certificate.
Refund: Pay-outs take place after registration and once the purchaser has opened a new account. A refund application form needs to be completed. Refunds are paid into the attorney’s trust account and take between 4 to 24 months.
Seller’s occupation AFTER registration of the transfer
- If the seller occupies the property after registration, the seller is liable for electricity and water consumed (subject to the agreement of sale).
- The Council does not account for this arrangement, and therefore, the Seller will have to reimburse the Purchaser, who will receive an account for such usage.
Buyer
ESKOM (electricity not charged on your City of Johannesburg Account)
- www.eskom.co.za or 0860 037 566
- On the date of occupation, attend to Eskom to open a new electricity account by completing the application and providing them with:
- meter reading
- identity document
- copy of the agreement of sale
- deposit
- copy of the electrical compliance certificate
- unique reference number received from the seller
City of Johannesburg Account
- https://eservices.joburg.org.za and go to “How do I?”
- Rate accounts are created between 8 to 10 weeks of registration, but may be delayed in certain cases.
- Refer to the local authority’s regional offices between 8 to 10 weeks after registration. They will require the following to open a new account:
- letter from the conveyancer confirming registration
- purchaser’s identity document
- purchaser’s contact details.
- A deposit will be payable by the purchaser. The deposit will be included in the purchaser’s first account upon its creation.
Purchaser’s occupation BEFORE registration of the transfer
- If the Purchaser occupies the property BEFORE registration, the Purchaser is liable for electricity and water consumed (subject to the agreement of sale).
- The Council does not account for this arrangement, and therefore, the Purchaser will have to reimburse the seller, who will receive an account for such usage.
Sectional Title
- The accounts for sectional titles are no different from full title properties. However, sectional titles exclude water and electricity and include refuse disposal.
- Water and electricity: Billed on the Body Corporate’s Levy Statement and dealt with exclusively by the trustees or managing agent of the sectional title scheme. This means that one need not attend to the Council to open an account.
- Rates Account: These are created within 8 to 10 weeks of the property being registered and may be delayed in some cases. The deposit to open this account may only be paid after an account number has been issued.
Certificates Of Compliance In Property Transactions
Sale agreements can provide for up to five different types of compliance certificates to be obtained by the seller before a property transfer is registered. These may be required in both conventional and sectional title transactions.
Here follows a summary of the important aspects of each compliance certificate:
ELECTRICAL
- Certifies that the electrical installation on the property complies with the required safety standards.
- Governed by the Occupational Health and Safety Act.
- Current certificates are valid if issued less than 2 years before transfer. However, if any modification was made to the installation after the certificate was issued, a new certificate must be obtained.
- Best for the inspection and remedial work to be carried out as soon as possible after the deal is concluded, and prior to the purchaser moving in.
ELECTRIC FENCE
- The certificate must be obtained on installation of an electric fence, and if any change or amendment is made, a new certificate must be obtained.
- Certifies that the electric fence installation complies with the prescribed safety standards.
- Governed by the Occupational Health and Safety Act.
- An existing certificate may be transferred by the seller to the purchaser. A seller only needs to obtain a new certificate if a change was made to the installation after the current certificate was issued.
- The requirement also applies to sales of sectional title units if there is an electric fence system situated on common property.
GAS
- The certificate must be obtained on the installation of the gas appliance, and if any change or amendment is made, a new certificate must be obtained.
- Certifies that the gas installation on the property complies with the prescribed safety standards.
- Governed by the Occupational Health and Safety Act.
- A new certificate must be obtained every time there is a change of ownership.
WATER/PLUMBING
- Certifies that the water installation at the property is in line with municipal and building guidelines.
- Governed by the City of Cape Town Water By-law. Only applicable to transfers within the municipal jurisdiction of the City of Cape Town.
- A new certificate must be obtained upon change of ownership.
- The seller is required to submit the certificate to the City of Cape Town municipality prior to transfer.
BEETLE
- Usually valid for 3 to 6 months only.
- When there is a change of ownership, this certification is often called for; it is not obligatory.
- Certifies that the accessible wood of permanent structures on the property is free from certain wood-destroying beetles.
- Not governed by any specific law, but a practice that has evolved over the years.
- Parties can contract out of this; however, if parties agree that no certificate is necessary and the bank requires it for the purchaser’s bond, then this is for the purchaser’s expense
