Buying a property is one of the biggest investments you’ll make, and navigating the transfer process can feel like a cross between running the Comrades Marathon and a game of Monopoly. In South Africa, property transfers typically take between 8 to 12 weeks, but this can stretch out depending on a few factors. Let’s take a look at the steps involved in the property transfer process, the approximate time frames, and what you can expect along the way.
Steps in the Property Transfer Process
1. Offer to Purchase
The journey begins when a buyer falls in love with your home and submits an offer to purchase (OTP). This is a written agreement between you and the buyer that outlines the terms and conditions of the sale. It will include the price the buyer is willing to pay and any conditions that may impact the sale, such as all curtains to stay in the home, or that the offer is subject to a clear home inspection by a professional inspection team. You might not accept the buyers first offer, and there may be some negotiating, however once both parties have agreed to the terms, the offer is signed, and it becomes a binding contract.
Time Frame: 1-2 weeks
Key Activities: Negotiation of terms, agreement signing.
2. Bond Approval
If the buyer is financing the purchase with a home loan, the next step is bond approval. The buyer applies for a bond from a bank or financial institution. The bank will conduct a credit assessment and property valuation to determine if they will grant the loan. If you are fortunate enough to have a cash offer, this stage of the process could move more quickly.
Time Frame: 2-4 weeks
Key Activities: Application submission, credit checks, property valuation.
3. Appointment of Conveyancer
Once the bond is approved, a conveyancer (an attorney who specialises in property) is appointed to manage the transfer process. Typically, the seller nominates the conveyancer, but both parties must agree. Remember to do your homework. You don’t have to use the conveyancer recommended by the estate agent. It’s always a good idea to check references on the conveyancer to make sure that previous clients have been happy with their services.
Time Frame: Immediate upon bond approval
Key Activities: Appointment and engagement with the conveyancer.
4. Preparation of Transfer Documents
The conveyancer prepares the necessary documents for the transfer. This includes obtaining clearance certificates from the local municipality, confirming that all rates and taxes are paid up to date, and in the case of the home being in a residential estate, whether it is freehold or sectional title, that the seller’s levy account is up to date.
Time Frame: 1-2 weeks
Key Activities: Document preparation, request for clearance certificates.
5. Signing of Transfer Documents
Both the buyer and the seller must sign the transfer documents. The conveyancer arranges meetings for the parties to sign these documents, which can be done either in person or through a secure digital platform.
Time Frame: 1 week
Key Activities: Scheduling and signing of documents.
6. Lodgement in the Deeds Office
Once all the documents are signed, the conveyancer will lodge them with the Deeds Office. This is a critical step where the property transfer is officially recorded. The Deeds Office examines the documents to ensure everything is in order. If any documentation is missing, the examiner will request further information from the attorney before continuing.
Time Frame: 2-3 weeks
Key Activities: Document lodgement, examination by the Deeds Office.
7. Registration of Transfer
Once the Deeds Office approves the documents, the property is officially transferred to the buyer. The buyer’s bond is registered simultaneously. The buyer becomes the legal owner, and the seller receives the proceeds from the sale, less any fees to the estate agent and conveyancing attorneys.
Time Frame: 1 week
Key Activities: Approval and registration of transfer.
Factors Influencing the Timeline
While it usually takes about 8 to 12 weeks to complete the property transfer process, there are a number of factors that can influence this timeline:
- Efficiency of the Conveyancer: An experienced and efficient conveyancer can expedite the process, however if the conveyancer is slow or inexperienced, delays could occur.
- Buyer’s Financial Preparedness: As the seller, there is little you can do to prevent delays when it comes to the buyer obtaining bond approval, and this can significantly extend the timeline. As a buyer, do your best to make sure that all financial documentation is in order as this can speed up the approval process.
- Municipal Delays: All South Africans understand the challenges of dealing with Eskom or City Power, and local municipalities, which is why obtaining clearance certificates from municipalities can sometimes be slow, especially in larger cities or during peak periods.
- Deeds Office Backlogs: The Deeds Office may have backlogs, particularly during peak seasons or due to administrative delays. In South Africa backlogs happen a lot, so it’s always good to ask your conveyancer what the average lodging time is, at the time of your sale, as it will help you to manage your expectations.
Tips to Expedite the Process
- Choose a Reputable Conveyancer: A good conveyancer can make a world of difference, while a slow one can make you feel like you’re stuck in peak hour traffic when every light is out, and the informal traffic wardens are manning the intersections.
- Prepare Financial Documents: Having all your ducks in a row can prevent delays. As a buyer, it is your responsibility to make sure all necessary financial documents are ready and complete to avoid delays in bond approval.
- Stay in touch: Regular communication with your conveyancer can help identify and resolve potential issues promptly. Never assume that things are running according to plan, and don’t be afraid to ask questions if you’re not sure about particular points in their update communications.
- Plan Ahead: Be aware of potential delays and plan accordingly, if you are the seller, and you need cash to cover the move out costs or to put a deposit down on your next home, consider bridging financ to cover you until the sale goes through. If you are the buyer, you need to make sure you have a contingency plan in place in case the transfer takes longer than expected. There is always the option of paying occupational rent if the seller has vacated the premises early or perhaps the moving company can keep your home contents in storage till your move in date is finalised.
Making your property transfer as hassle free as possible
Understanding the property transfer process and being prepared can help ensure a smooth and timely transfer of ownership. While the typical transfer period in South Africa ranges from 8 to 12 weeks, being proactive and informed can help you navigate this complex process with confidence. Whether you’re a first-time buyer, or a seasoned property investor, knowing what to expect can make all the difference in your property transaction experience.
At Transafrica Property Financial and Legal, we ensure that the process of transferring the property from the seller to the buyer happens without any hassle while keeping you in the loop. Contact us today for all your property transfer needs.
