1.
INSTRUCTING AUSTIN JORDAAN INC.
As soon as your sale contract has been signed your estate agent
will forward a copy to AUSTIN JORDAAN INC. We will immediately do the
following:
o
Write to any bank which holds a mortgage bond
over the Seller's property to obtain the original title deed and the bank's
cancellation figures (the amount it requires to clear the Seller's bond);
o
Write to both the Seller and the Buyer advising
them we are handling the transfer. We will request copies of your ID's and
Marriage certificates to enable us to prepare the transfer documents for
signature;
o
Apply for clearance particulars from the local
council to ascertain what rates and taxes and other charges will be payable in
advance ( 4 months) to obtain a clearance certificate.
2.
SIGNING TRANSFER AND BOND DOCUMENTS
Once we have all the documents that we need we will prepare the
documents you have to sign. If you are the buyer and you have to sign your bond
documents at the office of another attorney appointed by your bank, you will be
required to sign the actual bond documents, an acceptance form, authorities to
issue guarantees, and any other papers the bank requires.
GUARANTEES AND
CERTIFICATES
Once both parties
have signed all transfer and bond documents and transfer costs have been paid,
we will attend to the final requirements prior to lodgement
of the deeds in the deeds office. There are three major documents that we need
to obtain:
1.
BOND GUARANTEE
A guarantee must be filed with the attorney appointed to cancel the
existing bonds over the property. The guarantee will be obtained from the bond
attorney. This will cover the capital amount required by the bank as well as
interest due till date of registration of transfer. Most banks over quote the
capital amount (to protect themselves against any
shortfall) and the payment of accrued interest usually results in the bank
being overpaid on registration. If you are the Seller do not be alarmed if the conveyancer's final account appears to quote an excessive
amount paid to your bank - it is a standard procedure and your bank will refund
you any overpayment within a week after registration.
2.
TRANSFER DUTY RECEIPT
Transfer duty, is payable on most property sales. We have to pay it
in advance and file the transfer duty receipt with the other documents we lodge
in the Deeds office. Transfer Duty is calculated as follows:
On immovable property (on or after 1 March 2006).
Transfer duty, if property is purchased by natural persons:
|
Property value |
Rates of tax |
|
R0 to R500,000 |
0% |
|
R500,001 to
R1,000,000 |
5% on the value
above R500,000 |
|
R1,000,001 and
above |
R25,000 plus 8%
on the value above R1,000,000 |
Transfer duty, if property is purchased by companies, close
corporations or trusts, is a flat rate of 8% on the full purchase consideration.
There are a few cases where transfer duty is not payable where a
property is purchased purely for religious purposes, or where the Seller is
liable for VAT (such as a property developer).
3.
CLEARANCE CERTIFICATE
The local council's clearance certificate also has to be lodged.
Once again, as the council will require prepayment, it may be overpaid by the
time registration takes place. A refund will again be made shortly after
registration. In a case of Sectional Title sales a levy clearance certificate
is obtained from the body corporate.
LODGEMENT AND REGISTRATION
The final stage
in any transfer is the process of lodgement and
registration. A fairly standard procedure is followed:
1.
LODGEMENT OF DOCUMENTS
o
We will lodge a power of attorney signed by the
Seller, the transfer duty receipt, clearance certificate, the original title
deed and a draft deed which, on registration, will be certified as the new
official deed of transfer.
o
When ready we will proceed to arrange
simultaneous lodgement with the attorneys appointed to cancel the Seller's
existing bonds and those registering the Buyer's new bond. All their documents
will be lodged in special files on the same day at the relevant deeds office.
2.
REGISTRATION OF TRANSFER
Between 8 and 10 working days later the lodgment will come up for
inspection and correction of minor errors. This process is known as being
"on prep" . As soon as the files are totally
correct they will be put forward for registration the next day. The conveyancer will then sign the new deed which transfers
ownership of the property to the Buyer.
3.
FINAL ACCOUNTS
o
Provided there are no complications or delays the
whole transfer process should take approximately six to eight weeks. On the day
following registration we account to both parties.
o
The Seller's account will reflect the purchase
price less deductions for agent's commission, cancellation fees, the amount
paid to cancel existing bonds, rates and taxes paid and any other necessary
disbursements.
o
The Buyer's account will also show the purchase
price, how it was made up, all costs paid all transfer
and bond costs deducted, as well as any other relevant credits or debits. The
new title deed will be forwarded to the Buyer's bank, as they will keep it as
security.
TRANSFER AND BOND COSTS
A Buyer has to
pay the following costs to effect registration of his transfer and bond:
1.
TRANSFER COSTS
o
Transfer Duty.
o
Transfer Fee. (This is the conveyancer's
fee)
o
Sundries.
o
Deeds Office Fees.
o
Provision for Rates.
o
Value-Added Tax.
2.
BOND COSTS
o
Bond Fee
o
Stamp Duty.(Always coma two percent of the bond
amount)
o
Sundries and Valued-Added Tax.
o
Deeds Office Fee..
o
Bank Administration Fees.
CONTACTING US AT 0861
LAWYER