Registration – The Three Month Wait
After months of searching and tormenting yourself by running from show day to show day, searching the internet to no end, speaking to handfuls of agents all promising that they have the perfect property, you finally find your dream home!
You put in an offer and it gets accepted. Fantastic news! You are so ready to move in that you can already hear the screech of the box tape tearing off the roll.However, before you empty all your unwashed clothing into a box and tape it up, let’s discuss the process that your purchase has to undergo prior to registration… The Three Month Wait!
This is the part that Purchasers often find confusing and frustrating as it tends to drag on for some time, seemingly unnecessarily, however this is not the case. Let us break it down, step by step:
Once you have signed an Offer to Purchase and the Seller has agreed to the conditions, it’s important to understand that the transfer process entails more than just the transfer of the property from the Seller’s name into that of the Purchaser’s.
The Bond Originator as well as the Conveyancer are notified of the sale. The Bond Originator will proceed to apply to various banks on your behalf in order to get you the best interest rate on your bond. This process could take anything from 1 week to 30 days depending on your profile and credit history.
The Conveyancer will begin the process of registering the property into your name which could take approximately 6 weeks, in the event of a cash sale; 3 months in the event of a sale requiring a bond or longer in the event of a deceased estate.
The registration process typically includes the cancellation of the Seller’s existing bond and the registration of the new bond into your name. In the event that the Seller is purchasing a new home, there is a knock on effect whereby simultaneous transfer will be arranged if at all possible.
Once your bond application has been approved, the Transferring Attorney will begin to acquire all the necessary documentation, which includes but is not limited to: the Title Deed of the property, the cancellation figures on the Seller’s outstanding bond, the outstanding rates and taxes, a rates clearance certificate from the Municipality and a tax clearance certificate from SARS.
The Bond Cancellation Attorney will need to cancel the Seller’s existing bond upon receipt of a guarantee for the outstanding amount. Once the Transferring Attorney has received the title deed, cancellation figures and all other relevant documentation, then you, the Purchaser, and the Seller will sign the transfer documentation. At this point, the Purchaser will pay the transfer and bond registration costs.
Following payment, the Bond Attorney, Transferring Attorney and Bond cancellation Attorney will lodge their documentation at the Deeds Office simultaneously. The Deeds Office will then examine the documentation and in the event that all is in order, you will receive notification that the matter is on “prep”, which means the property should register within approximately three working days.
Statements of account and the net proceeds are paid out within approximately 24 hours of registration of transfer and the Title Deed and bond documentation will be forwarded to the bank to store as security.
It is important to be aware that various attorneys will be involved at different stages of the transfer and that various fees and expenses linked to the purchase, bond registration and bond cancellation, will apply.
To ensure peace of mind and for more information, contact Intro Real Estate, it’s the right choice.