From the acceptance of the offer, to the purchase by the seller, and the registration of the deeds in the Deeds Office takes approximately two to three months, depending on the terms and conditions of the offer to purchase.
The seller and purchaser sign the offer to purchase, which is then sent to the seller’s transfer attorney, who will request:
- FICA from the seller and the purchaser.
- Payment of the deposit and pro forma transfer costs from the purchaser.
- Electrical, plumber, beetle, gas, borer, fencing compliance certificates from the seller.
- The title deed and bond cancellation figures from the current bondholder.
- Rates clearance figures.
The purchaser pays the deposit into the transferring attorney’s trust, after which the purchaser’s bond is approved and he/she advises the transferring attorneys.
- The bank will appoint bond registration attorneys.
- The transferring attorneys liaise with the bond registration attorneys who supply the amounts available for guarantees, and request guarantee requirements to cancel the existing bond.
The bond cancellation attorneys will be appointed by the existing bondholder. Following this:
- The bond cancellation attorneys send a copy of the title deed and bond cancellation figures to the transferring attorneys.
- The transferring attorneys use the bond cancellation figures to send a request to the bond registration attorneys to issue guarantees to cancel the existing bond.
Transfer documents are drafted and the seller and purchaser are called to sign.
- The bond documents are drafted and the purchaser is called to sign and to pay their bond registration fees.
Once payment of the pro forma transfer costs is received from the purchaser and all transfer documents are signed, the transferring attorneys will pay the rates, levy clearance figures and the transfer duty.
- The purchaser must pay the remaining balance of the purchase price.
The transferring attorney receives the original guarantees covering the purchase price from the bond registration attorneys.
- The transferring attorney sends the original guarantees to the bond cancellation attorneys and pays the bond cancellation attorney’s costs on behalf of the seller.
- The transferring attorney receives the rates clearance certificate, the levy clearance certificate, and the transfer duty receipt. At this stage, all suspensive conditions to the offer to purchase must have been met.
The transferring attorney arranges with the bond cancellation and bond registration attorneys for simultaneous lodgement of their deeds.
- Once all parties are ready to proceed, the deeds are lodged.
The documents are examined in the Deeds Office, after which the attorneys are called to sign off their documents for registration.
- The transfer takes 8-10 working days to register.
- At this stage, all finances must be in order to ensure that the purchase price is covered in full.
On registration of the deeds, the purchaser becomes the new owner of the property and the seller’s bond is cancelled. The bank is then presented with the guarantees for payment of the purchase price.
- All parties are advised of registration and the transferring attorney draws a final statement of account for both the seller and the purchaser.
- Any credit balances and the purchase price are paid normally within 2-3 working days after registration.
The Deeds Office releases the title deed and mortgage bond after 3-6 months, once the deeds have been data captured and microfilmed.
- The original deeds are sent to the transferring and bond registration attorneys for delivery to the current bondholder.