WHO DOES THE DEPOSIT GET PAID TO?
The deposit is to be paid to the conveyancing attorney attending to the transfer, to be held in their trust account. In the past, the estate agency responsible for the sale was allowed to hold the deposit, however, due to the inception of the Property Practitioners Act, estate agencies are no longer allowed to hold a purchaser’s deposit. Thus, the deposit is to be paid directly to the conveyancing attorneys in order to avoid any delays. Once you have paid the deposit into the conveyancing attorneys trust account, you will receive an acknowledgement of receipt. The purchasers are never to pay the deposit directly to the sellers, as the sellers are not entitled to the funds until the registration of transfer in the Deeds Office.
IS THE PURCHASERS ENTITLED TO THE INTEREST ACCRUED ON THE DEPOSIT?
The conveyancing attorneys can arrange that the purchasers deposit be invested in an interest-bearing account. This can only be done if the purchaser gives the conveyancing attorney written consent to do so, as well as the necessary FICA documents. The interest will be paid to the purchaser once the transfer has registered.
WHO DOES THE OCCUPATIONAL RENTAL GET PAID TO AND WHEN?
The agreed occupational rental can be paid either directly to the seller, the conveyancing attorney, or to the estate agency, as stipulated in the sale agreement. If the occupational rental is paid to the conveyancing attorneys or estate agency, they will make sure that the money is paid to the seller. If the purchaser pays the money directly to the seller’s, the purchaser will need to send proof of payment to the seller, estate agency and the conveyancing attorney. Occupational rental is generally paid monthly in advance by the first day of the month, unless otherwise agreed by both parties. Occupational rental generally excludes utility usage, however, the utilities can be included in the occupational rental, which works in both parties’ favour.
HOW LONG DOES THE REGISTRATION AND TRANSFER PROCESS TAKE?
The transfer process takes approximately three (3) months without any delays. There are many factors that need to be taken into consideration including: the due date for the buyer’s bond to be granted, the guarantees stipulated in the sale agreement and the rates figures obtained from the Municipality. If it is a deceased estate transfer the Power of Attorney needs to be endorsed by the Master’s office. Your conveyancing attorney will keep you up to date with the progress of the transfer and notify you if there are any delays.
WHAT WILL THE TRANSFER AND BOND COSTS BE?
The transfer costs, transfer duty (payable to SARS) and applicable disbursements are charged on a set tariff according to the purchase price of the property. The conveyancing attorney will be able to provide a proforma account once they receive the sale agreement. The bond costs are also set on a tariff according to the value of the mortgage bond that you register over the property.
PLEASE NOTE: The bond registration cost is separate from the transfer costs and must be paid to the bond registration attorneys.
If you would like an estimate of costs prior to signing an offer to purchase, contact us for more details or contact email@example.com
WHEN ARE THE TRANSFER COSTS DUE AND TO WHOM ARE THEY PAID?
Once the sale is conclusive, the conveyancer will request that the purchaser pays the transfer costs. The conveyancing attorney is required to pay the transfer duty (to SARS) in advance, rates and/or levies due to obtain the necessary clearance certificates. If you delay in making the payment – it will unnecessarily delay the transfer.
PLEASE NOTE: The Municipality requires payment of 3 months rates and utilities in advance, payable by the seller before a clearance certificate is issued. Any adjustments in respect of rates are done on registration of transfer whereby the purchaser is billed for their portion of the rates.
WILL SOMEONE CONTACT YOU TO LET YOU KNOW THAT THE PROPERTY HAS REGISTERED?
The conveyancing attorney will contact you as soon as the transfer has registered. Once registration has taken place you will receive a final statement of your account. Your bank will send you a letter advising you of the registration of your bond and the date that your first instalment is payable.
If you have registered a bond over the property, the original title deed will be sent to the bank for security, and you will receive a copy for your records.
PLEASE NOTE WHO’S RESPONSIBLE FOR PAYING WHAT:
- Occupational Rental, if occupation is taken prior to registration.
- Transfer Costs (including transfer duty).
- Bond registration costs.
- Agents Commission (from transfer proceeds).
- Bond Cancellation (existing bond and attorneys cancellation costs).
- Compliance Certificates (from transfer proceeds).
- Occupational Rental, if still in occupation after registration.