Property Transfer Guidelines in South Africa

In Cape town, the most inconvenience and considered a big problem that most home buyers are facing is the property transfer.  This is due to the delays of the city department.  The process of the real estate transfer requires patience because the procedure is long as what you have expected.  There are many factors to consider that cause the delays.  However, if you understand the process, you can help yourself avoid many surprises and can prepare yourself to move smoothly into your new house.

When getting a new home, you need to follow the procedures, applicable laws and the regulations.  The procedure includes;

  • Municipal Property Rates Act


  • Transfer Duty Act


  •  Financial Intelligence Centre Act (FICA)


  • Value Added Tax Act

Alternatively, you have to follow the procedure to satisfy the demand of the bank for proper documentation, and you must have a bond coming from the bank in order to finance the purchase.  The lengthy procedure begins by attaining the finance order after the offer is already given.  Then, the real estate agent will help you get the bond originator.  However, if you have all the means, approach the bank anytime you want.  But the process is slower as what you have expected and the technique here is to be patient because the South African real estate is a lengthy process.

The Transfer Procedure

After fulfilling the suspensive condition, the conveyancer is instructed to continue with the transfer procedure.

The Agreement of Sale

The biggest and the most stressful financial commitment we undertake is called selling and buying of property. With all the challenges, it is best to choose carefully the real estate agent you want to hire.  The agent must have the knowledge to explain the sales agreement terms to both parties.  The agent must be sure that the questions being asked and the terms are understandable before contract signing is being done.

The Suspensive Condition

The agreement of sale must have suspensive condition.  The condition must be done before the process of transfer starts.  The widespread suspensive condition is called granting of the purchaser’s bond.  The bond is a kind of cash loan given to the purchaser.

Bond Cancellation

When the seller owes the cash to his/her bank, because the money is used to buy a property, then the bond will be cancelled together when the property is being transferred to the buyer.  The conveyancer will get the property’s deed of title from the bank of the seller who kept the deed of title for security.
If the property is in the name of the buyer and the bond of the seller is cancelled, the bank will pay the seller the balance and the outstanding amount.  The cost of bond cancellation is paid by the seller and deducted from the price of the property before the seller get the full amount.

Mortgage Bond Registration

If the buyer gets a bond to pay for the property, the bond will be registered together with the transfer registration and bond cancellation.  The bank that grant the bond will tell  the conveyancer to attend the bond registration.

Property Transfer

The conveyancer must prepare the documents to be transferred.  The requirements include details of the buyer and the seller, copies of identity documents, certificate of marriage, divorce order, and many more.  After receiving the deed of title and the documents, the conveyancer prepares the document transfer and the proforma account.  Then both parties will be called for document signing.

What are the costs included?

  •  Conveyancer’s fees


  •  Transfer duty fees


  •  Rates

Property transfer in South Africa is not a big deal anymore when you follow the guidelines above.

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