|When the Conveyancer receives the copy of the Agreement of Sale, the following is set in motion:|
Assuming that there is a bond registered over the property, the Bondholder (usually a bank) is requested in writing by the Conveyancer to inform him of the amount required to cancel the bond. This is referred to as the "Cancellation figure".
Simultaneously, the Bondholder is asked for the Title Deed. This is forwarded to the Bondholder's attorney, and subsequently to the Seller's Conveyancer.
At the same time, the Municipality (or Managing Agent in the case of Sectional Title unit) is asked for a Rates Clearance certificate. This is a certificate valid usually for a period of three months and serves as proof that the Seller has met his obligations for rates and taxes, water & electricity. For an approximate estimate of how much this will be, multiply the last statement received from the municipality by three.
Upon receipt of the Title Deed, the Conveyancer prepares the Transfer Documents for signature by the parties, who are then requested to sign them. At this stage, the Seller will be asked to pay the Bondholder's attorneys the Bond cancellation fee, which is then transmitted to such attorneys.
To speed up the process, the Seller may be asked to furnish the Conveyancer with the funds required to obtain the Clearance Certificate (discussed above) from the Municipality (or Managing Agent) prior to signing the documents.
Upon signature of the documents by the parties, the Conveyancer collects the transfer duty and fees from the Purchaser and thereafter pays such transfer duty to the Receiver of Revenue and obtains a Transfer Duty receipt.
In most cases, the Purchaser will have applied for a bond over the property. The Conveyancer liases with the bond registration attorneys immediately after being informed of who they are, and furnishes them with the draft title deed.
The Conveyancer will then "call for guarantees" for the outstanding amount of the purchase price, depending on how the contract is structured. Assuming for example that a bond obtained by the Purchaser covers the balance of the purchase price, guarantees will only be received after the Purchaser has signed the bond documentation with the bond registration attorneys and paid the costs.
After the documents have been signed, they are lodged at the Deeds office. Lodgement is done in conjunction with the Bond Cancellation attorneys as well as the Bond Registration attorneys. From this point onwards, transfer takes between ten to fourteen days.