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The Conveyancing Process
(for Dummies)

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Transferring ownership of a property from the seller to the buyer (i.e. conveyancing) is a complicated and often misunderstood process. It involves a number of parties, many of whom have conflicting interests. All of them, however, have to coordinate their efforts to ensure that the documents arrive at the Deeds Office on the same day.
There are other parties, such as the Estate Agent, Mortgage Lender and Mortgage Originator, who have a financial interest in the transaction and often want it to be completed in the shortest possible time.
Understanding the sequence of events will help you monitor the process accurately and also give you an idea of the time remaining at each stage.
Below are some of the steps typically required to transfer a residential property. It has been written in simple language and the diagrams have been used to illustrate the relationships between the various parties.
Much of the jargon and key concepts are explained in the notes on the right hand side.

Vertaal in Afrikaans

Step

Description

Notes

You

sign an offer to purchase a

House

from the

Seller

using an

Estate
Agent

The Sale Agreement (or Deed of Sale) is a binding contract between the buyer and the seller that forms the basis of the transaction.

You

apply to

Your
Bank

for a

Loan

A bond application normally forms part of the "suspensive conditions", i.e. events that need to happen before the sale is finalised. Another common suspensive condition is the sale of an existing property.

The

Estate
Agent

sends the

Sale
Agreement

to the

Transferring
Attorney

The Sale Agreement (or Deed of Sale) is a binding contract between the buyer and the seller that forms the basis of the transaction.

The

Transferring
Attorney

contacts the

Seller's
Bank

and requests the

Original
Title Deed

and the

Cancellation
Figures

If the Seller has a bond over the property, his/her bank will hold the title deed in safekeeping.
The bank will also provide Cancellation Figures (or Discharge Costs), i.e. how much is required to settle the Seller's bond.

Your
Bank

instructs their attorney, the

Bond
Attorney

to register a

Mortgage
Bond

A Mortgage Bond is a special loan which uses fixed property (e.g. a house) as security and it is registered in the Deeds Office

Seller's
Bank

instructs their attorney, the

Cancelation
Attorney

to cancel the Seller's bond

The Cancelation Attorney sends the Title Deed and guarantee requirements (i.e. the Cancelation costs) to the Bond Attorney and the Transferring Attorney

The

Transferring
Attorney

requests a

Rates
Clearance
Certificate

from the

Local
Authority

A property cannot be transferred if there are outstanding rates or taxes.
The Attorney will a lso do a Deeds Office search at this stage to check the details of the property.

The

Transferring
Attorney

assembles and prepares the

Documents

This can take up to 3 weeks

You

will be called by the

Transferring
Attorney

to come in and sign the

Documents

You will be required to sign a Power of Attorney to Transfer as well as a number of affidavits to verify your marital status, financial status and identity.
Remember to take your ID and FICA documents.

You

pay the

Transfer
Costs

and your share of

Rates
& Taxes

You will be presented with a Proforma Account which is an estimate of the costs. You will get a Final Account after regsitration when the actual costs are known. The costs vary because the date of registration is unknown at this stage and some of the costs are determined by this date.
Note: The seller will also pay their share of Rates & Taxes at this time.

The

Transferring
Attorney

instructs the

Lodging
Attorney

to lodge the

Documents

in the Deeds Office

The Lodging Attorney is located near the Deeds Office and acts on behalf of the Transferring Attorney (who may be far away from the Deeds Office - even in another town)

The

Lodging
Attorney

contacts the

Canceling
Attorney

Bond
Attorney

to ensure the documents are lodged together on the same day

The documents have to be registered at the same time because the Seller's bank has guarantees that ensure it will be paid when their bond is cancelled and they are not prepared to cancel the bond until the new bond is registered.

The

Deeds Office
Examiner

carefully checks all the

Documents

This stage is called "on prep". It can take between 7 - 10 working days depending on how busy the Deeds Office is.

The

Deeds Office
Examiner

contacts the

Lodging
Attorney

Bond
Attorney

Canceling
Attorney

to inform them the

Documents

are ready

This stage is called "Up for prep" or "Up for Fees".
It means the documents are all in order and they will be registered the next day.

The

Documents

are registered

The buyer become the owner of the property and the seller is paid out the net proceeds. The Estate Agent is paid their commission.

The

Transferring
Attorney

sends the

Title
Deed

Your
Bank

It can take up to 3 months for the Deeds Office to send the Title Deed to the Attorneys. If you don't have a bond, the Title Deed will be sent to you.