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 Once
the Agreement of Sale and Purchase has been signed by the buyer and the
seller, it becomes a binding agreement. The estate agent will issue instructions
to the Conveyancers to attend to the registration of transfer into the
purchasers name.
1. CONDITIONS
When all the subjective conditions have been fulfilled such as the bond
being granted, and the wood-
borer and electrical inspections done and a clearance certificate obtained,
the Conveyancers will
start on a set of transfer documents.
2. SETTLEMENT FIGURE
The conveyancer obtains a settlement figure from the Financial Institution
holding the current bond
over the property. Written applications must be done.
3. TITLE DEEDS
The Conveyancers must obtain the Title Deeds to the property. These are
frequently held by the
Financial Institution holding the bond over the property. Written application
must be made.
4. GUARANTEE
The financial Institution holding the Title Deeds will only release them
if and when a guarantee is
issued that the existing bond balance will be paid in full on transfer.
5. DOCUMENTS
These are drawn up by the conveyances for the buyer and the seller to
sign.
- Power of Attorney from seller to the conveyancers authorizing the
latter to effect transfer into purchaser’s name.
- Transfer duty declaration to be signed by both parties or by the purchaser
only if the property is exempt from transfer duty.
- Insolvency affidavit to be signed by both parties that they are not
un-rehabilitated insolvent.
- Matrimonial affidavit to verify marital and personal details of both
parties.
- Rates clearance certificate to be obtained by sending a signed application
with the prescribed fee to the local authority. Before a certificate
is issued, rates must be paid up to date to the end of the current rates
year.
- Levy clearance certificate for sectional title units - a request is
sent to the managing agent of the Body Corporate with the required fee.
Levies must be up to date before a clearance certificate is issued.
- Pro-forma account issued to the purchaser advising him of the total
costs payable by him with a request to sign all the documents and to
pay such costs.
6. PAYMENT OF COSTS
Any delay in the payment of the above costs will stop transfer.
7. TRANSFER DUTY RECEIPT
Obtained from the receiver of revenue upon payment of transfer duty.
8. AGENTS
Once all the documentation is completed, signed and the required certificates
obtained, the necessary
documentation is sent to Pietermaritzburg Conveyancers “Agents”
who will hold them until another 2 sets
of documents reach them. I.e. bond registration documents and bond cancellation
documents.
9. BOND APPLICATION
Normally attended to by the Estate Agent as soon as the sale agreement
as been signed by the seller and
the purchase.
10. LETTER OF GRANT
Once the financial institution is satisfied that the purchaser qualifies
for the bond in all respects. It will send a letter of grant to purchaser
informing him/her at the same time of any conditions relating to the bond
& who the bond attorneys will be. The financial institution will instruct
the bond attorneys to proceed with the bond registration.
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