What is the process behind a transfer of deed sale. I.E. When I buy your property, what's the process behind the scenes that changes the property details from your name to my name.
It is the estate agent's responsibility to ensure a superior performance in the process of the marketing, sale and transfer of the property in the Deeds Office is performed by a conveyancer. A professional estate agent needs to understand the basic conveyancing procedures performed by the conveyancer.
Conveyancing
The term "conveyancing" describes the legal process whereby a person, close corporation, company or trust becomes registered and lawful owner of fixed property and ensures that such ownership cannot be challenged.The conveyancer is a person who has passed the national conveyancing examination. By law this is the only person who can register fixed property transfers.
The seller usually appoints the conveyancer in the transfer process. This appointment can be negotiated between the parties of sale agreements. You'll very often find that when using a bond originator, it's often best to ask them which attorneys they suggest as they generally manage to get discounted rates with selected attorney panels. Make sure that the estate agent does not force you into using their attorneys. Chat to the seller and come to some sort of agreement. After all it is you the buyer that is paying the transfer fees and not the seller.
Agreement of Sale
The first step in the process of property transfer is to ensure the existence of the Offer to Purchase or Agreements of Sale. This means a valid contract between you the buyer and the seller. A written Offer to Purchase signed by a purchaser and accepted by the seller, after all suspense conditions have been fulfilled, constitutes a binding DEED OF SALE. Oral contracts do not stand.Conveyancing Procedures
On receipt of the signed Deed of Sale, the conveyancer will conduct the following procedures:1. Conduct a Deeds office search to verify the details of the property
2. Prepare the documentation that the seller and you the purchaser will need to sign
3. Liaise with the municipality for valuation certificates and rates clearance forms
4. Electrical Certificates
5. Purchasers (your) bond instructions which they will receive from the bank
Costs
All costs relating to the transfer of fixed property need to be paid prior to registration of transfer and will include the following:
Transfer Duty
Value Added Tax
Rates and Levies
Conveyancing Fees
Bond Registration Costs
Bond Cancellation Costs
Deeds Office Procedures
The conveyancer will lodge the documents they have prepared with the Deeds Office for registration. If there is a mortgage bond to be registered, or a bond to be cancelled, the conveyancers attending to the registration thereof will lodge their documentation simultaneously with the transfer documentation.
Two examiners in the Deeds Office will then examine the documentation to ensure that they comply with all the relevant legislation and regulations. If all the documents are found to be in order and ready for registration they are executed by the conveyancer approximately eight working days after lodged in the Deeds Office.
On registration the purchaser becomes the lawful owner of the property, Approximately one month after registration the Deeds Office releases the Title Deed reflecting the new ownership, which in turn is passed on to the new owner. If a mortgage bond was registered the Title Deed is retained by the financial institution.
Timing
The period of time it takes to register a transfer depends on the cooperation of each party involved. Most transfers if everything runs smoothly happens within 6 - 8 weeks.
That's the end of our first article for 2008. I hope you all enjoyed it.
WizardMan Out!
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