TRANSFERRING YOUR PROPERTY? HERE'S THE CHECKLIST

Everybody's signed on the dotted line, the buyer's home loan application has been approved...and you can see a bright light at the end of the tunnel. It's a time of relief at a job well done.

It is, however, important to know, this is not the end of the journey. A number of processes, procedures, receipts, and documents are required before the sale agreement can proceed satisfactorily to the deeds office to ensure the change of ownership.

There are also costs involved, which you must take into consideration when you put your property on the market. Certain costs which are for the seller's account can be deducted from the proceeds of the property sale.

 Your transferring attorney will not only be able to advise you about the process but will sometimes take on the responsibility of securing professionals and obtaining certain mandatory certifications.

Maria Davey of Meumann White Attorneys compiled a handy list of certificates, receipts and consents which are required in the transfer process. Keep this list - and process - handy if you're about to sell your property. Some tasks rest with you, others with the transferring attorneys or  others - either the estate agent or the transferring attorneys can assist you with obtaining what is required.   

The processes which you, as seller, need to initiate can begin soon, but bear in mind that some certificates are only valid for three or six months - and some cannot pre-date the sale agreement - so look to your transferring attorney for guidance in this regard.

Consent to cancel a mortgage bond.

If you still have a home mortgage bond registered over your property (even if the balance owing is NIL), this consent to cancel an existing mortgage bond has to be obtained and lodged in the Deeds office. It's prepared and lodged by the Cancellation Attorney (once guarantees have been secured for payment on registration) - the bank bondholder instructs an attorney to attend to this cancellation. This attorney then requests guarantees from the Attorney who attends to the transfer to settle any balance owing. These attorneys will all link their transactions to lodge simultaneously at the Deeds Office.

HOA Consent to transfer

A Consent to Transfer is sometimes required from a Homeowner's Association, Developer or other third party, especially if there is a condition relating to its requirement in the existing title deed. This is to be lodged in the Deeds Office by the Transferring Attorney.

Transfer Duty Receipt

This is requested by the Transferring Attorney and is issued by SARS on receipt of the transfer duty payment, which is payable by the buyer. This receipt has to be lodged in the Deeds Office by the Transferring Attorney.

Rates Clearance Certificate

This is requested, and issued by the municipality as confirmation that the rates on the property are up to date. It's issued on receipt of the Rates and Services Payment (advanced for three months). It is to be lodged in the Deeds Office by the Transferring Attorney. Note: The certificate fee is collected from the purchaser and is included in the transfer costs. The amount requested for payment from the municipality is collected from the Seller as this is his/her debt at this stage.  A pro rata amount is collected from the purchaser, retained by the transferring attorney in trust, and used to refund the seller on registration for any charges paid in advance.

Water Clearance Certificate

This is requested by the transferring attorney, and issued by the municipality, confirming that the seller's water bill is paid up. It's not required for all properties - sometimes there is a note on the title deeds, but most commonly the municipality will advise that a water certificate is required when the rates certificate application is submitted.

Levy Clearance certificate

This certificate is issued by the Body Corporate/Managing agent confirming that levies on the property are up to date. It is issued on receipt of payment or an undertaking that the levies will be up to date on date of registration of transfer. This certificate is not required to be lodged in the Deeds Office. The Transferring Attorney is required to lodge a Conveyancer's certificate confirming that they have enquired and have ensured that levies are paid up to date. It is also a pro rata cost.

Electrical clearance certificate

This certificate is issued by a registered electrician, to ensure all electrical work conforms to regulatory standards.

This certificate needs to be received by the Transferring Attorney prior to registration of documents in the Deeds Office but is not lodged in the Deeds Office.  

It is usually arranged by the seller, but in some cases, by the estate agency or the transferring attorney. The cost of obtaining the certificate and attending to any work required so that the certificate can be issued, is for the seller's account and can be paid by the transferring attorney on registration from the proceeds due to the seller.

Entomologist Certificate

This certificate is issued by a registered entomologist, normally confirming that there is no active wood-destroying insect activity on the property. The costs of any treatment to eradicate any such pests = including tenting the property if necessary _ is for the account of the seller.

Like the electrical compliance certificate, these costs can be paid on transfer by the transferring attorney from the proceeds due to the seller. This certificate is not required in terms of any legislation and is only of real relevance in KZN. It has become a standard requirement in most sale agreements.

Gas Certificate

This is only required if there is a gas installation on the property. It must be obtained prior to registration of transfer in the Deeds Office, but not to be lodged in the Deeds Office. This is to be obtained by the seller, but the estate agent or transferring attorney can assist the seller, as is the case with the electrical and entomologist certificates.

Electric Fence Certificate

If there's an electrical fence, this certificate needs to be obtained prior to registration of documents in the Deeds Office, but not to be lodged in the Deeds Office. This is to be obtained by the seller, or in certain instances, the Transferring Attorney.