TRANSFER LINGO
Security documents: This will refer to the paperwork reflecting the legal right, title and
interest relating to the immovable property in question either referred
to as a Title deed, mortgage bond or Notarial Deed
Lodgement: Lodgement is the first step in the Deeds Office process
There are 3 Levels at the Deeds office in terms of which a “vetting” process is undertaken with a Deeds office examiner examines the transfer and or bond application for accuracy and compliance with the applicable regulations.
The examination period takes between 5 – 7 working days. Provided that no queries are raised, the documents will be returned to the conveyancers to prepare for registration (known as “on Prep”).
Up on “prep”: Once the matter is on Prep, this means that the documents were successfully examined, and the Deeds Office will permit registration. The matter can be held on Prep for a maximum period of 4 days, this time is used by conveyancers to finalize any outstanding issues. Once the matter is on Prep and all the linked conveyancers are ready to register, the matter is “handed in” for registration. The matter will then normally register the following day.
Registration: This is the 3rd step where the official change of ownership takes place
Transfer documents: These are the administrative documents the parties sign in order to effect the property documents. They include special powers of attorney, transfer duty declarations, affidavits and FICA documentation
Clearances: A number of clearances have to be obtained and lodged with the transfer documents at the deeds office. These include a transfer duty clearance from SARS, a rates clearance from the municipality and HOA or levy clearances when buying into a complex
FICA: The Financial Intelligence Centre places an duty on attorneys to identify and verify clients in order to prevent money laundering and terrorism. You will accordingly be asked to supply your identity document, proof of address etc. The source of funds used to purchase a property will also need to be verified.
Transfer costs: These are the fees paid to the conveyancer for handling the property transfer. While the seller appoints the attorney, the buyer is responsible for paying these fees. The fee is often a sliding scale based on the property’s value. The conveyancer provides a proforma account with a breakdown of the estimated costs at the beginning of the process. Can be confused with transfer duty, which is a tax paid to SARS (South African Revenue Service) on properties above the prescribed threshold.
Bond Costs: These are the fees paid to the bond attorney appointed by the Bank to register the mortgage bond. Only applicable if the purchaser intends to register a mortgage bond to finance the property. The Bank’s initiation fee may be included in these fees.