Owning property in South Africa is a major milestone. Whether you’re a first-time buyer or an investor, understanding the property registration process is key. This process involves legal steps to transfer ownership from seller to buyer. Here, we’ll cover the basics of property registration.
Signing an Offer to Purchase (OTP)
When selling a home, nostalgia is a strong emotion. Homes are more than Structures; they hold memories of laughter, tears and everday moments. Saying goodbye means letting go of a part of your history, which can evoke a deep sence of attachment.
The Offer to Purchase (OTP)
Property registration process typically begins with the buyer signing an (offer to purchase), assisted by an estate agent. An OTP is then presented to the seller. Thus, the document outlines the terms and conditions of the transaction, including the sale price, payment terms, suspensive conditions, and any contingencies. Once the seller signs the OTP, it constitutes the Deed of Sale between the seller and the buyer, making it a binding agreement.
Transfer Process
This process can generally take between 1 – 3 months.
Transfer process involves several steps:
• Drafting Transfer Documentation: Once the buyer’s finances are in order, the seller’s conveyancer begins drafting the transfer documentation. These documents outline the specifics of the transaction and are governed by relevant legislation. Both parties must sign these documents.
• Bond Registration: If relevant, the bond attorney prepares documents for bond registration, a process that runs parallel to the transfer.
• Bond Cancellation: If the seller still has a bond over the property, a third attorney applies to have the bond cancelled and handles the cancellation process and this process also runs parallel to the transfer process.
• Clerance Certificates and Transfer Duty: Transferring attorney arranges rates and levy clearance certificates (rates and levy figures are payable by the seller) as well as a transfer duty receipt or exemption receipt (Transfer Duty is payable by the buyer on a purchase price exceeding R1,1 million)
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Lodgement:
The attorneys lodge all relevant documents altogether at the Deeds Office, which is responsible for the registration of property transactions. Officials at the Deeds Office then examine the documents to ensure compliance with legal requirements. Any descrepancies or issues must be rectified, regardless of the circumstances, before registration can be effected.
Registration:
When the documents are in order, the Deeds Office registers the transfer of ownership in the buyer’s name, including the buyer’s bond and cancellation of the seller’s existing bod (if applicate). This updates the Deeds Office records to reflect the new owner’s details, cancelling the old Title Deed and registering a new one. Once the Registrar of Deeds signs the transfer, the buyer formally becomes the legal owner of the property.
Conclusion
In this overview we provide a simplified look at the property registration process. For detailed guidance, your real estate agent and the attorneys involved are there to help.
By demystifying the property registration process, individuals can embark on their property ownership journey with clarity and peace of mind, contributing to a thriving real estate market in South Africa.
