The property transfer process: Step-by-step guide
Are you doing a property transfer? While this process can be difficult, it’s easier when you have insight into the various steps that must be taken. Getting your documentation in order also contributes to a successful transfer. Don’t let the complexities of a property transfer get in the way of owning your own home. Find houses for sale on GotProperty today.
1. Sign the sales agreement
The first step of the process is where the buyer commits to the sale by signing an offer to purchase. This binding contract is the foundation for the property transfer.
2. Apply for finance
Next, the buyer needs to apply to the bank for financial support. The bond application is typically one of the necessary steps before the sale is completed. The sale of the buyer’s current property is another part of the process that usually needs to occur prior to the sale being finalised.
3. Consult with an attorney
The signed sales agreement must be sent to an attorney who specialises in property transfer. The transfer attorney is part of the legal team who assists with the process.
They’re responsible for contacting the seller’s financial institute to obtain the title deed as well as the cancellation numbers if a bond has already been taken out for the property. These discharge expenses show how much cash is needed to take care of the seller’s bond.
4. Register a mortgage bond
Next, a specialised attorney will be required to complete the registration of a mortgage bond under the instruction of the buyer’s financial institute. Property is used as security for this type of loan.
5. Cancellation of the seller’s bond
The sellers bond needs to be cancelled by the cancellation attorney under the instruction of the seller’s financial institute. As part of this legal process, the title deed is sent to the other attorneys who are a part of the transfer process. The guarantee requirements are also shared during this step.
6. Rates clearance certificate
Legally, the transfer can only go through after all municipal charges have been settled. You’ll need a rates clearance certificate to prove that there are no outstanding fees that need to be paid. The attorney will conduct a deeds office search to review any information regarding the property.
7. Buyer signs documents
Once the transferring attorney has prepared the documentation that is required, the buyer needs to sign them. The buyer can expect to sign various affidavits and a Power of Attorney to Transfer.
8. Buyer pays transfer expenses
The buyer settles the transfer expenses. They’ll also need to cover their share of the rates and taxes during this step of the transfer process. The buyer will be provided with an estimation of the expenses as the account can only be finalised after the registration of the property.
9. The documents are submitted to the Deeds Office
All legal teams involved consult with each other to ensure that all the necessary documents are submitted to the Deeds Office.
10. Documents are reviewed
The documents are examined at the Deeds Office, which can take up to ten business days. Once the documents have been checked, the registration will go through the next day.
11. Buyer’s financial institute receives the title deed
After registration, the buyer is now the proud owner of their new home. The seller receives payment and the estate agent receives their commission. The title deed is sent to the buyer’s financial institute by the legal team.
While the property transfer process can be a long and stressful process, it’s all worth it once you have the title deed to your new home. Find a house for sale on GotProperty and get the transfer process started.