The buying process

Question 1

Steps of the buying process

Answer 1

1. Buying the property - buyer and seller sign offer to purchase, buyer applies for a bond
2. Bond approval - bank approves bond, Bond Attorney registers the bond
3. Property transfer - seller tells Transferring Attorney to transfer property, title deed and cancellation figures (if seller has a bond) are requested from the bank
4. Bond Attorney contacts Transferring Attorney - Bond Attorney advises Transferring Attorney of amount for guarantees, requests the draft deed of transfer and guarantee requirements
5. Cancellation Attorney - cancels seller’s bond upon receipt of a guarantee for amount owing
6. Transferring Attorney - receives title deed and cancellation figures and sends a copy of the deed of transfer and guarantee requirements to the Bond Attorney, requests buyer and seller sign transfer documents, buyer pays transfer costs and Transferring Attorney pays the rates and taxes and the transfer duty, transfer duty paid to SARS every time, transfer fees paid to Transferring Attorney
7. Bond Attorney - prepares bond documentation with relevant account, buyer signs documents and pays costs, Bond Attorney prepares/issues the needed guarantees, sends them to the Transferring Attorney and prepares the bond documents for lodgement in the Deeds Offices
8. Transferring Attorney - forwards guarantees to Cancellation Attorney
9. Cancellation Attorney - get consent for cancellation from the bank which holds the seller’s bond
10. Documents prepared for the Deeds Office - after documentation signed and costs paid, the transfer, new bond and cancellation bond documents are prepared by respective attorneys for lodgement in the Deeds Office
11. Deeds Office - all documents are sent to the Deeds Office by the attorneys, takes roughly 2-3 weeks to check documents before they are registered
12. Bank pays out the loan - on day of registration the bank pays out the loan according to the guarantees, allow 3 months for registration and transfer of bond, occupational rent might apply, once bond is repaid buyer receives a Title Deed

Question 2

Title Deed and Deed of Sale details

Answer 2

Make an offer to purchase
Once offer to purchase is signed - Deed of Sale
Conditions of agreement must be fair to all parties
Once sale process is done the Registrar of Deeds issues a legal document (Title Deed)
Title Deed provides legal ownership of property
Title Deed is filed at the Deeds Office and reflects in the National Property Register
Do not buy if you can’t be shown the Title Deed

Question 3

Details of the Offer to Purchase

Answer 3

Must contain:
Correct names and residential addresses of the buyer and seller
Clear/accurate description of the property being sold and the purchase price
Date of occupation of the property by the buyer
List of items to remain and be removed
All conditions agreed upon by the buyer and seller - specified in writing
Clause stipulating penalties if one party breaches contract