How to Avoid Delays in the Transfer Process

Buying or selling a home can be an exciting time, but it can also be stressful if the transfer process is delayed. In this blog post, we will discuss some of the most common causes of delays in the transfer process and how to avoid them.

What can delay the transfer process?

There are a number of factors that can delay the transfer process, including:

• The non-availability of either party to sign the transfer documents.

• Delays in the fulfillment of suspensive conditions contained in the Agreement of Sale, e.g. where the financial institution delays the matter by not approving bond finance speedily.

• A delay by the financial institution in delivering the Title Deed to the attorneys.

• A delay in the issue of a Rates Clearance Certificate.

• Complications in a linked transaction.

• Delays relating to guarantees.

• Failure by the purchaser to pay the transfer duty and costs promptly, or failure to pay the balance of the purchase price when required.

• Rejection of the transfer documentation at the Deeds Office.

How can transfer be accelerated?

There are a few things that can be done to accelerate the transfer process.

The estate agents can speed up the process by:

o Supplying full and clear instructions in the Agreement of Sale.

o Ensuring the Offer to Purchase is complete, i.e. giving all relevant details for the purchaser and the seller.

o Enclosing copies of the parties’ FICA documents.

o Where either party is a legal entity, collecting the following documentation and forwarding it to the conveyancers:

▪ Trust: Copy of the Trust Deed

▪ Company: Copies of the Memorandum of Association and Certificate of Incorporation of the Company

▪ Close Corporation: Copy of the Founding Statement or amended Founding Statement (CK1/CK2 forms)

The conveyancers can help by:

o On receipt of the instructions, immediately conducting a Deeds Office search and obtaining a copy of the Title Deed from the Deeds Office.

o Applying for a Rates Clearance Certificate immediately.

o Establishing when both parties are available to sign the transfer documentation.

o Requesting prompt payment by the purchaser of transfer duty and pro rata rates.

o Liaising with all parties to the transaction, including the agent.

o Correctly and accurately drafting the transfer documentation.

The sellers can help by:

o Selecting a competent conveyancer (this is probably the most important factor).

o Providing the conveyancer with full FICA documentation on request.

o Obtaining valid electrical, beetle, plumbing and gas certificates timeously.

o Ensuring rates are paid up to date.

o If there is no bond, having the original title deed of the property to hand.

o If there is a bond, ensuring bond payments are not in arrears and the bank is given sufficient notice of cancellation to avoid penalties.

o If the property is sectional title, obtaining a copy of the latest financial statements of the body corporate, including the budget. Details of any special levy imposed by the trustees and copies of the minutes of the Annual General Meeting (“AGM”) for the last few years should also be supplied, as well as copies of the management and conduct rules of the body corporate. Levies must be up to date. If the title deed of the property requires written consent of the body corporate or homeowners’ association to the transfer (which must be lodged with the transfer documentation), getting this consent quickly will help the process.

o Making the necessary plans to move out of the property on the day before transfer is registered, or on the agreed date.

The purchasers can help by:

o Signing all documentation, both transfer bond documents (if applicable), on request.

o Providing the conveyancer with full FICA documentation on request.

o Applying for bond finance immediately on signature of the Offer to Purchase, or arranging a pre-approved bond before signing the Offer to Purchase.

o Paying all costs along with the deposit and balance of the purchase price on request.

o Synchronising occupation dates with the seller and conveyancers.

By following these tips, you can help to ensure that your property transfer goes smoothly and without any delays.

If you have any questions about the transfer process, please do not hesitate to contact us. We are here to help you through this process and make it as stress-free as possible.

We hope this blog post has been helpful.