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Get Close to Property Transfer Cost in South Africa
By arlene | February 20, 2009
Most sellers have one basic aim when it comes to transfer and that is simply getting it through as soon as possible, coupled as closely as possible to the dates for possession and occupation. This is because the proceeds of the sale are almost always paid out only against transfer. The cardinal rule here, however, is to be prepared for something to go awry because it often does and the delays can easily stretch from weeks into months. Reasons for the delay can include factors such as someone having a pre-emptive right over the property which has to be cleared, a long queue for bonds, or problems at the Deeds Office. A seller or buyer may have gone off on holiday without signing all the necessary documents.
Essentially, however, the legalities of transfer come down to two main documents: the Deed of Transfer or Title Deed to the property — a pedigree setting out property ownership and conditions; and the property diagram — setting out its extent, boundaries and location. With the vast majority of deals requiring bonds nowadays, most purchasers never see the Deed of Transfer on their home since it is usually retained by the building society holding the bond and a copy of the deed is filed at the Deeds Registry or Deeds Office. Not that there is any reason why the owner should not see his Deed of Transfer, and in many cases the document contains all sorts of interesting titbits of information that can make good reading for the new owner. Often attached to it is the property diagram. To get the diagram if it is not attached, note the reference number on the Deed of Transfer and furnish this, with a small fee, to the survey section of one of the Deeds Registries. These are found in Pretoria, Johannesburg, Bloemfontein, Pietermaritzburg, Cape Town, King William’s Town, Kimberley and Vryburg.
The Deed of Transfer will note the identity of the conveyancer attending to the transfer, the name of the seller he is appearing for and the authorization for this appearance, the name of the buyer and a comprehensive description of the property. Then comes a list of conditions pertaining to the property, such as restrictions as to the number of dwellings, (e.g. single residential, stipulating that only one residence may be erected on the property), and how the land may be used. Servitudes may be set out in the Deed of Transfer but this is not necessarily so.
Some of the items pertaining to the deed may be conditional — for example, it might have been a requirement that the seller pay an endowment for the provision of services by the local authority as a prerequisite for a new subdivision — and if the conditions have not been complied with, and the plot in question could not be transferred, the deed would be thrown out and the process will have to start all over again from the beginning.
If everything goes smoothly though, it will take about three weeks for an attorney to get his papers into the Deeds Office. The examination period there varies according to the staff complement of a particular office and the number of transactions it has to process. A staff shortage in the midst of a property boom may mean months of delay in the Deeds Office. In other words, make provision for the date of transfer being way off the mark because if you have already taken occupation, you will be landed with occupational interest on the amount of the purchase price still outstanding at the time.
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Topics: Land, Property, Residential, Sale | 4 Comments »
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