So you’ve found the property you want to purchase, put in an Offer of Purchase and obtained financing from the bank. What’s next? Registering the property in your name. Although it can be lengthy, the registration process is essential and is much easier if you understand what it entails.
Key Players in the Property Registration Process
As a Buyer, there are 6 key people you will interact with during the property registration process. They include the Seller of the property, a transfer attorney, a bond registration lawyer, a bond cancellation attorney, Estate Agent and Registrar of Deeds.
If you are new to the registration process, here are 5 steps you can use as guidelines to ensure the ownership transfer goes smoothly:
Step #1: Prepare Transfer and Bond Documentation
Once you have the funds to secure your new property, the first step in the transfer of ownership is to prepare transfer and bond documents. The Seller is required to hire a transfer attorney, who is responsible for preparing the Title Deed, and obtaining a rates clearance certificate and cancellation figures.
On your part, you will be required to pay a transfer duty to SARS and conveyancing fees to the transfer attorney. Transfer costs are charged on property worth more than R600 000 and calculated according to the purchase price.
In addition to settling costs, the Buyer needs to prepare bond documents with a bond registration lawyer. At this stage, the attorney can help you set up a home loan account for a fee. It is also a good time to hire an Estate Agent to oversee the process.
Step #2: Cancelling the Seller’s Bond
After your bond registration attorney has prepared the relevant documents, they are given to both the transfer attorney and a bond cancellation lawyer. The Seller is also required to submit their information. It is the job of a bond cancellation attorney to approach the bank and request that the Seller’s bond be cancelled.
Step #3: Signing off Documents
When the Buyer and Seller have successfully registered and cancelled bond respectively, all documents need to be signed off by both parties. This process may be mediated by an Estate Agent and/or attorneys.
Step #4: Submitting Documents to the Deeds Office
The next step is to submit all the signed documents to the Deeds Office, where they will be analysed and verified in the following 2-3 weeks. If all is in order, the Registrar of Deeds will hand over ownership rights to the Buyer. Should there be a discrepancy, all the attorneys will be notified.
Step #5: Receiving the Property Loan
If the registration is successful, the Buyer will receive the loan from the bank to pay for the property. This usually happens on the same day registration takes place. In just 3 weeks, provided there are no delays, the Buyer officially becomes the new owner.