| Offer
to purchase:
The registration of transfer is triggered by the acceptance of an
offer to purchase by the seller. The Offer to Purchase should contain
all the essential details regarding the Purchaser, the Seller, the
property description and the payment of the purchase price. The
said document should contain particulars of the existing bondholder
over the property.
Bond
application:
Almost immediately after the acceptance of the Offer to Purchase
an application for the finance of the purchase price must be made
by the Purchaser or his representative to a financial institution.
Instruction
to the transferring attorney:
In order to activate the registration of the transfer process a
copy of the signed Offer to Purchase should be handed over to the
transferring attorney upon acceptance thereof by the Seller.
Cancellation
figures:
After opening the file by the Transfer Attorney, last mentioned
immediately requests cancellation figures from the Seller's existing
bondholder. Upon the receipt of the said request the existing bondholder
will supply the outstanding amount required for the cancellation
of the bond and simultaneously instruct the attorneys to attend
to the cancellation thereof. At the same time the existing bondholder
will also forward the Title Deed which was kept by them as additional
security to the cancellation attorney.
Clearance
certificate:
Simultaneously the transfer attorney will apply for a Rates Clearance
Certificate from the local authorities/Body Corporate. Once last
mentioned has calculated the outstanding balances, the transferring
attorney will be advised accordingly and must then make payment
thereof in order to obtain the necessary Rates Clearance Certificate.
No transfer may be lodged with the Deed Office unless accompanied
by the said Rates Clearance Certificate. Upon approval by the financial
institution of the purchasers' finance an instruction will be forwarded
to the attorney of their choice (usually the transferring attorneys)
to attend to the registration of the necessary bond.
Transfer
duty receipt:
The transferring attorney submits an application for a Transfer
Duty receipt from the Receiver of Revenue. No transfer may be lodged
with the Deeds Office unless accompanied by the said Transfer Duty
receipt. The attorneys attending to the registration of the bond
immediately requests from the transferring attorney the draft Deed
of Transfer. This is necessary to obtain details regarding the title
conditions, purchase price, dates of sales etc. (This is only done
if the financial institution instructs an attorney other than the
transferring attorney.) After instruction to register the bond has
been given by the financial institution the transferring attorney
may now proceed to draw all documents regarding the transfer and
arrange for the signature thereof by both the Seller and the Purchaser.
Similarly the bond attorney upon receipt of the Draft Deed proceeds
to draw all documents pertaining to the registration of the bond
and has the same signed by the Purchaser. The bond attorney then
issues the necessary guarantees in favor of the Seller and / or
the existing bondholder of the Seller to procure the cancellation
of the existing bond.
By this time the transferring attorney would already have received
both the Clearance certificate as well as the Transfer duty receipt
and will now be in a position to lodge the documents for registration
in the Deeds Office.
Lodgement:
The transferring attorney then contacts the bond attorney as well
as the cancellation attorney in order to effect the simultaneous
lodgment of the various deeds in the Deeds Office. The transferring
attorney attends to the registration of transfer of the property
from the name of the Seller to the Purchaser whilst the cancellation
attorney attends to the cancellation of the existing bond of the
Seller and the bond attorney on the other hand sees to the registration
of the new bond to be registered over the property as security for
the Purchasers' loan. The set of three registrations is then submitted
simultaneously in the Deeds Office and after being examined by the
examiners in the Deeds Office, placed on preparation where the attorneys;
both transfer and bond cancellation attorneys; attend to any notes
made by the examiners in respect of the documents. This takes 10-14
working days.
After the documents where cleared by the examiners on prep, i.e.
all the notes where attended to by the various attorneys, last mentioned
are forwarded for registration the following day.
Upon registration the attorneys involved attend to the following:
Present
the guarantees for payment of the purchase price, which is then
allocated towards the payment of the existing bond in the balance
in favor of the Sellers, being the proceeds of the sale.
Adjustment
and apportionment of rates payments are made and the various parties
debited or credited as the case may be. The local authority is advised
of the registration.
Agent's
commission is paid to the estate agent.
The transfer attorney then forwards the Title Deed to the Bond attorney/Bond
holder who retains the same together with the registered bond document
as secured.
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