Your attorney will give notice of cancellation to any financial institution holding a bond over the property. Your attorney will request all the necessary documents i.e., original title deed, identification documents of all parties etc. If applicable , the following fees and costs need to be paid by the seller:
- Bond cancellation fee and penalty interest
- Beetle, electrical, plumbing and gas inspection fees
- Costs of repairs in order for compliance certificates to be issued
Prior to transfer a rates clearance certificate must be obtained from the city; this requires rates to be paid in advance for the balance of the financial year. The buyer will refund the seller on transfer with the conveyancer establishing the pro rata amounts due. In the case of the transfer of a sectional title unit a levy clearance certificate is also required prior to transfer.
Once the offer has been accepted, you will enter the transfer stage which typically takes 3 months from signature. Your attorney will exercise “due diligence” by asking for certain key documents from you, the seller and the relevant authorities. These typically include:
- Copies of identity documents of all concerned
- Proof of marital status
- Original title deed
- Transfer duty receipt from SARS
- Rates clearance certificate
- Tax clearance certificates from SARS
- Proof of residence
- Bond account details from the seller
- Bond approval from the buyer
- The deposit is usually held in the conveyancing attorney’s trust account until the transfer date. Normally, any interest earned accrues to the purchaser.