Why is the transfer process so encumbersome?

The process consists of the following stages:

  1. The signing of the Offer to Purchase by the Purchaser and the Seller.
  2. The Purchaser in most cases applies for a bond at one or more banks once his offer is accepted and signed by the Seller.
  3. The outcome of this process can take up to 4 weeks, which is the time frame the banks require to process the application and to adhere to all the legislation, particularly the National Credit Act.
  4. The transfer attorney (conveyancer) can only start with the steps to transfer the property, once the bond of the Purchaser has been approved.
  5. Therefore, even though the attorney might be in receipt of the contract, the process will only start once the bond is approved.
  6. The Seller’s bank takes 7 – 10 working days to furnish the amount required to pay their bond off(called cancellation figures)
  7. The municipality issues the amount required by them for payment to issue the clearance certificate The municipality takes 14 days to issue this (clearance figures)
  8. The bank that granted the bond, sends an instruction to its attorneys to draft and register the bond. This takes about a week from date of grant of the bond.
  9. The transfer documents are drawn and signed by the Purchaser and Seller. This process takes approximately 2 weeks
  10. Once all the documents have been signed, and the transfer costs paid, the municipality and SARS are paid and the clearance certificates and transfer duty receipt issued.
  11. Guarantees are issued to cover the cancellation of the bond.
By | 2017-07-26T20:11:37+00:00 July 26th, 2017|0 Comments

About the Author:

Leave A Comment