INCIDENTAL SUBJECTS AFFECTING PROPERTY TRANSFERS: SIMULTANEOUS TRANSFER

by Taryn Davies Stevens • 2 MIN • 328 Words

When two sales are linked together with the intention of registering them simultaneously, Conveyancers speak of lodging them as simul transfers. The purpose is to speed up the registration of the second sale so that it takes place on the same day as the first sale. Otherwise, one has to wait for the registration of the first sale (where B has sold to C) so that the proceeds can become available for the second (A to B) to be lodged. This system can often be counter-productive, however, and it is not wise for a Conveyancer to attempt to register two transfers simultaneously in the following circumstances:

Where the second transfer (A to B) is delayed for any reason. Instead of this transfer being expedited, the first becomes delayed as well. A chain is only as strong as its weakest link. In such cases it is better to let the first transfer be registered before the second;
Where the transactions are lodged in different deeds registries. It is not easy to anticipate when each will come up for registration and so lodgement in each registry cannot always be synchronised. If one of the transactions should be rejected, the other will have to be withdrawn as well.
Where the finances become complicated. This happens when Seller B has committed almost the whole proceeds of his sale to the second sale where Seller A has sold to him. Conveyancers always have to make provision for interest above the capital amount owing on the existing bond and there is likely to be a shortfall. The Conveyancer cannot be expected to advance the funds required for the payment of transfer duty and the required clearance certificate as he will be running an unjustifiable risk. In such cases, the first transfer should be secured before the second is lodged.

Otherwise, it is in the interests of the parties, where possible, to register the matters simultaneously.

CREDIT:

Property Law Publications

John Gilchrist

082 904 1300

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