We often get asked what the process is when transferring a property from one person to the other and we have the process summarized below. Conveyancing has its own jargon, and we will define some of the key terms below.

  • Transfer attorney is the attorney that represents the seller and manages the entire process.
  • Bond bank issues the new loan to the purchaser.
  • Cancellation bank is the bank that holds the existing mortgage of the seller.
  • Cancellation attorney represents the cancellation bank and seller.
  • Bond attorney acts on behalf of the bond bank and purchaser.
  • With our key terms simply defined, below is the
  • process to transfer a property.
  1. Reducing the sale of property agreement to writing and having both the seller and purchaser
    sign and/or receiving a copy of the agreement from an agent.
  2. Cancellation figures are then requested from the cancellation bank by the transfer attorney.
  3. The bond bank is also contacted by the transfer attorney to enquire whether a loan has been issued to the purchaser and the value of the loan.
  4. The cancellation attorney provides the transfer attorney with the cancellation figures.
  5. The transfer attorney is informed by the bond attorney that an instruction has been given to register a bond on behalf of the purchaser and bond bank. The amount of the bond will be provided and may be less than, equal to or greater than the purchase price, this is dependable on the economic climate and
    requirement of banks. In the event of the bond being less than the purchase price, a deposit may be required.
  6. The transfer attorney will receive the existing deed of transfer, draw transfer documents, and will be required to have the seller and purchaser sign. Thereafter, the transfer attorney will send the draft deed to the bond attorney to enable them to draw bond documents on behalf of the purchaser.
  7. Cancellation figures are provided by the transfer attorney to the bond attorney, as well as the request for guarantee of payment of the purchase price.
  1. The transfer attorney receives the guarantee that the bond attorney sends.
  2. In the event where there is no mortgage to be cancelled, the only guarantee would be in favour of the transfer attorney, for the remainder of the purchase price. In the event where there is a mortgage that is to be cancelled, two guarantees will exist:
    -A guarantee in favour of the cancellation bank for the cancellation figures plus interest.
    -A guarantee in favour of the transfer attorney, for the remainder of the purchase price owed to
    the seller less interest.
  3. The original guarantee in favour of the cancellation bank is sent to the cancellation attorney by the transfer attorney. The bank receives confirmation and pays out on guarantees. The original guarantee is kept by the transfer attorney.
  4. At the same time, the transfer attorneys make application for rates clearance, and transfer duty (if any) and obtains clearance. For a sectional title, a levy clearance certificate will also be required.
  5. The transfer attorney arranges for lodgement of transfer documents for registration.
  6. Banks issue permission to bond and cancellation attorneys and transfer documents are all lodged at the Deeds Office for simultaneous registration.
  7. Documents are examined by examiners and registration of transfer is executed.
  8. All parties are informed and accounted to Be advised, the above process may differ
    depending on the nature of each transaction.

    We have an admitted conveyancer to take care of all your property transfers and conveyancing related needs. It is our firm commitment to keep our clients informed every step of the way, and ensure fast turn around time. If you have any property related queries and transfers please contact us at ZI Attorneys Inc. on (010) 025 6000 / info@attorneys-at-law.org.za.

    Disclaimer: The opinions expressed in the article are solely thereof the writer. All the rights of ZI Attorneys Inc. remain reserved.