The transfer and bond process, start to finish

Up to three attorneys are involved

This surprises people, but each has a distinct job and none of them 'works for the other side':

• The transferring attorney (conveyancer) registers the change of ownership from seller to buyer. The seller chooses this attorney, and it is named in the offer to purchase
• The bond registration attorney registers the buyer's new home loan over the property, appointed by the buyer's bank
• The bond cancellation attorney cancels the seller's existing bond, appointed by the seller's bank

Nothing starts until the conditions are met

Most offers are 'subject to' certain things, and the transfer clock only really starts once these suspensive conditions are satisfied — usually the buyer's bond being approved, and sometimes the sale of the buyer's own home first. Until then, the attorneys can prepare but cannot proceed. Getting bond approval quickly is the single biggest thing a buyer controls.

The sequence, step by step

Once conditions are met, it runs roughly like this:

• The seller instructs the transferring attorney, who requests the title deed and bond cancellation figures from the seller's bank
• Both parties sign the transfer documents and the buyer signs the new bond documents
• The buyer pays transfer duty (to SARS via the attorney), transfer costs and bond registration costs — these must be paid before lodgement
• The buyer's bank issues guarantees for the purchase price to the transferring attorney
• The seller obtains a municipal rates clearance certificate (and a levy clearance for sectional title or estates)
• The three attorneys arrange simultaneous lodgement of all the documents at the Deeds Office
• The Deeds Office examines everything, and on registration ownership passes and the seller is paid

How long it takes

From a signed offer to registration is typically 8 to 12 weeks when everything runs smoothly. Inside that, the Deeds Office examination itself usually takes around one to two weeks once documents are lodged. The rest is the human work before lodgement — signatures, payments, bank guarantees and clearance certificates — which is exactly where time is won or lost.

Who pays for what

The split is set by law and long practice, and it catches people out:

• The buyer pays transfer duty, the transferring attorney's fees and the bond registration costs — these are over and above the purchase price
• The seller pays estate agent commission, the cost of cancelling their existing bond, and rates and compliance clearances
• Neither pays the other's attorneys, even though the buyer's costs are the larger of the two

What actually causes delays

Transfers rarely stall for mysterious reasons. The usual culprits are avoidable:

• Building plans that do not match the house — unapproved additions are the classic hold-up
• Outstanding municipal rates, or a rates clearance figure that takes the council time to issue
• Slow FICA paperwork (proof of identity and address) from either party
• Bond approval or bank guarantees arriving late
• A chain — the buyer's own home having to sell and register first