Transfer and Bond Procedure
The Transfer and Bond Process
1. Instructing Jan L. Jordaan Inc
Once we have received a copy of your duly signed sale agreement, we will immediately do the following:
- Write to any bank which holds a mortgage bond over the Seller's property to obtain the original title deed and the bank's cancellation figures (the amount it requires to clear the Seller's bond).
- Write to both the Seller and the Buyer advising them that we are handling the transfer. We will request copies of your ID's and Marriage certificate, as well as Proof of Residence (for FICA), to enable us to prepare the transfer documents for signature.
- Do a deed search to ensure what the correct property description is.
2. Signing and Transfer of Bond Documents
There could be potentially 3 firms of attorneys involved - The Transfer, Bond Cancellation and The Bond Attorneys. It could happen that one firm of attorneys is instructed to attend to the Transfer, Bond Cancellation and Bond.
Once we have all the documents that is needed, we will prepare the documents you have to sign.
If you are the buyer and you have to sign your bond documents at the office of another attorney appointed by your bank, you will be required to sign the actual bond documents, an acceptance form, authorities to issue guarantees, and any other papers the bank requires.
Guarantees and Certificates
Once both parties have signed all transfer and bond documents and transfer costs have been paid, we will attend to the final requirements prior to lodgement (handing in) of the documents in the deeds office.
Three very important documents need to be obtained before we can proceed:
1. Bond Guarantee
Guarantee must be filed with the attorney appointed to cancel the existing bond/s over the property. The guarantee will be obtained from the bond attorney. This will cover the capital amount required by the bank as well as interest due till date of registration of transfer. Most banks over quote the capital amount (to protect themselves against any shortfall) and the payment of accrued interest usually results in the bank being overpaid on registration. If you are the Seller, do not be alarmed if the conveyancer's final account appears to quote an excessive amount paid to your bank - it is a standard procedure and your bank will refund you any overpayment within a week after registration.
2. Transfer Duty Receipt
Transfer duty is payable on most property sales. We have to pay this in advance and file the transfer duty receipt with the other documents we lodge (hand in) in the Deeds Office.
3. Clearance Certificate
The local council's clearance certificate also has to be lodged. Once again, as the council will require prepayment, it may be overpaid by the time registration takes place. A refund will again be made shortly after registration. In a case of Sectional Title sales, a levy clearance certificate also needs to be obtained from the body corporate.
Lodgement and Registration
The final stage in any transfer is the process of lodgement (handing in at the Deeds Office) and registration.
A fairly standard procedure is followed:
1. Lodgement of Document
We will lodge a power of attorney signed by the Seller, the transfer duty receipt, clearance certificate, the original title deed and a draft deed which, on registration, will be certified as the new official deed of transfer. When ready we will proceed to arrange simultaneous lodgement with the attorneys appointed to cancel the Seller's existing bond/s and those registering the Buyer's new bond. All their documents will be lodged in special files on the same day at the relevant deeds office.
2. Registration of Transfer
Between 8 and 10 working days later the lodgment will come up for inspection and correction of possible minor errors. This process is known as being "on prep". As soon as the files are totally correct they will be put forward for registration the next day. The conveyancer will then sign the new deed which transfers ownership of the property to the Buyer.
3. Final Accounts
Provided there are no complications or delays the whole transfer process should take approximately six to eight weeks. On the day following registration we account to both parties.
The Seller's account will reflect the purchase price less deductions for agent's commission, cancellation fees, the amount paid to cancel existing bonds, rates and taxes paid and any other necessary disbursements.
The Buyer's account will also show the purchase price, how it was made up, all costs paid, all transfer and bond costs deducted, as well as any other relevant credits or debits. The new title deed will be forwarded to the Buyer's bank, as they will keep it as security.
Transfer and Bond Costs
A Buyer has to pay the following costs to effect registration of his transfer and bond:
1. Transfer Costs
- Transfer Duty
- Transfer Fee (The conveyancer's fee)
- Sundries (Deeds Office Fee)
- Provisions for Rates and Taxes (Town Council)
2. Bond Costs
- Bond Fee (The conveyancer's fee)
- Sundries (Deeds Office Fees)
- Initiation and Valuation Fee