What is Included in Your Property Transfer? A Practical Guide for South African Buyers and Sellers
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Buying or selling a home is a major life decision. It comes with excitement, nerves, and, let's be honest, a fair bit of paperwork. For many South Africans, the process can feel a little intimidating, especially the legal part. But once you understand how it all works, the transfer process becomes a lot less daunting and a lot more empowering.
At LWP Properties, we've walked this road with hundreds of families, first-time buyers, and seasoned sellers. Our job is to simplify the process, support you along the way, and help you feel confident from start to finish.
This article is your go-to guide to understanding the property transfer process in South Africa, without the jargon.
Let's start with the basics.
What Exactly Is a Property Transfer?
A property transfer is the legal process that takes place when ownership of a property changes hands. It's not as simple as signing a sale agreement and shaking hands, the legal title must be transferred through the Deeds Office by a registered conveyancer. That's the only way a property sale becomes official.
Think of the conveyancer as the navigator in this journey. They prepare and submit all the necessary paperwork, ensure the legal boxes are ticked, and manage communication between the buyer, seller, bank, SARS, the local municipality, and the Deeds Office. Yes, it's a lot of moving parts. But that's why you need professionals in your corner.
Step-by-Step: The Property Transfer Journey
Let's break down what happens after the Offer to Purchase (OTP) is signed:
1. The OTP is signed and submitted. It outlines the terms of the sale and sets the wheels in motion. It's legally binding once both parties sign.
2. The seller appoints the conveyancer.
3. FICA compliance comes next. Both parties need to submit FICA documents, ID, proof of address, and supporting information. This is a standard legal requirement.
4. If the buyer is applying for a home loan, this is the next step. Once the bank approves the bond, they appoint a bond attorney who will manage the mortgage registration.
5. The conveyancer obtains the settlement figures from the existing bond holder and obtain the necessary guarantee to settle the seller's bond on registration.
6. The conveyancer applies for a rates clearance certificate. This is needed to prove that the seller has settled all municipal accounts, including rates, water, and electricity. In some instances a levy certificate will also be required where a Home Owners Association or Body Corporate is applicable.
7. Transfer costs including transfer duty are calculated and paid by the buyer. If the property is valued over R1.1 million (as per SARS regulations), the buyer must pay this tax before registration. In some cases, VAT is applicable instead, your conveyancer will explain the difference.
8. All documents are checked, signed, and submitted together with the necessary clearance/levy certificates and transfer duty receipt to the Deeds Office after arranging with the bond and bond cancellation attorneys for simultaneous submission to the deeds office. The deeds office will review all the documents submitted, and if everything is in order, proceed with registration.
9. Registration day! This is the big moment, the property legally changes hands, and ownership is updated at the Deeds Office.
10. Once confirmed, the conveyancer releases the funds to the seller which normally takes place within a day or 2 after transfer as they need to wait for the relevant guarantee/s to pay out, and LWP coordinates the key handover to the new owner.
What Affects the Timeline?
While the average transfer takes around 8 to 12 weeks, several factors can influence this:
- Delays in bond approval
- Delays in obtaining bond cancellation figures
- Municipal clearance backlogs
- Missing or incorrect FICA documentation
- Late payment of transfer and bond costs
That's why we stay involved every step of the way. Our job at LWP is to keep communication flowing and to help prevent or resolve any hold-ups before they turn into problems.
Who Does What in the Process?
Understanding roles can make a big difference in how smooth the transfer goes. Here's a basic breakdown:
The Seller:
- Appoints the conveyancer
- Provides FICA documentation
- Pays the rates clearance figures and levy figures if applicable
- Pays the bond cancellation costs
- Provides the relevant compliance certificates
- Vacates the property at the agreed time
The Buyer:
- Pays the deposit (if applicable)
- Applies for and secures bond finance
- Pays the transfer costs including the transfer duty or VAT
- Signs transfer documents promptly
- Signs bond documents promptly and pays the bond costs
The Conveyancer:
- Provides regular updates to both seller and purchaser
- Prepares the legal documents
- Obtain the necessary rates and levy certificates
- Ensure all applicable compliance certificates are issued
- Ensure all terms set out in the agreement are complied with
- Coordinates with all relevant attorneys for submission to the deeds office
- Registers the transfer at the Deeds Office
LWP Properties:
- Helps with OTP negotiation
- Recommends trusted conveyancers and bond originators
- Provides support throughout the process
- Helps resolve snags before they escalate
Why Choosing the Right Team Matters
Some agencies hand over the sale and step back. At LWP, we believe in doing more.
We actively manage the process, offering consistent communication, updates, and guidance. From property assessment and listing to handover and after-sales support, we're here to make your experience seamless.
We also offer in-house access to mortgage brokers, trusted attorneys, and digital tracking tools so that you're never left wondering what's happening with your deal.
Frequently Asked Questions (FAQ)
Q: Do I have to use the seller's conveyancer?
A: Yes as it is the seller's greatest asset being dealt with and therefore it is the seller's prerogative to appoint the attorneys.
Q: What is transfer cost?
A: Transfer cost is the amount payable to the conveyancer for their services which will include the transfer duty, deeds office fees and other relevant charges.
Q: How much does transfer duty usually cost?
A: It depends on the sale price. Properties under R1.1 million are exempt. The conveyancer will provide an exact calculation.
Q: Can I speed up the process?
A: Submit documents quickly, stay in contact with your agent, and follow up on your bond application. We'll handle the rest.
Q: What if I'm buying in a complex or estate?
A: Additional clearances may be required from the body corporate or homeowners association. Don't worry, we'll guide you through that too.
Final Thoughts
Property transfers might sound overwhelming, but they don't have to be. With the right support and a clear roadmap, the journey from OTP to handover can be surprisingly straightforward, and even enjoyable.
At LWP Properties, we walk this path with you. Whether you're moving up, scaling down, or investing in something new, our job is to make the transition as smooth, informed, and stress-free as possible.
To connect with dependable and trustworthy real estate professionals renowned for their industry expertise, reach out to us below for additional information:
Telephone number: 011 468 5900
For enquiries - https://www.lwp.co.za/contact/
Our address:
72 Kyalami Boulevard
Kyalami Business Park
Kyalami, 1684
LWP Properties holds a Fidelity Fund Certificate issued by the Property Practitioners
Regulatory Authority (PPRA).
Author: LWP Properties