OPENING OF FILE

• Subsequently we proceed to open our file which include drafting our welcoming letters to the parties involved and the pro forma account containing the Purchaser/s costs for the transfer.
   
• The letter contains a short introduction and sets out all the documentation we will require from the parties in order to proceed with the transfer process, including FICA documentation.
   
• The FICA documentation will depend on the type of seller/purchaser, e.g. natural person, company, trust, deceased estate etc, which will be more fully described in the mentioned letter.

LIAISING WITH THIRD PARTIES

REQUESTING CANCELLATION FIGURES & GUARANTEES

During a conventional transfer there are usually three firms of Attorneys involved, i.e. the transferring attorneys (Matthysen Attorneys), the bond registration attorneys who are appointed by the Purchaser's bank (if the Purchaser/s' are obtaining financing for the purchase price from an accredited financial institution) and the bond cancellation attorneys (if the Seller/s have a bond registered over the property).

Bond cancellation Attorneys:

• Upon receipt of the bond account number of the Seller/s we request the bond cancellation figures from the bank.
   
• Kindly note that the costs of these Attorneys are for the account of the Seller/s.

Bond registration attorneys:

• These Attorneys will provide us with their ‘request for guarantee requirements’.
   
• The requirements we provide will include the exact guarantees we require from them as security for payment of the purchase price and outstanding amount of the Seller/s bond.
   
• Kindly note the costs of these Attorneys are for the account of the Purchaser/s.

REQUESTING CLEARANCE FIGURES

Municipal Clearance Figures:

• In all property transfer matters we must obtain consent for the transfer from the local authority/municipality. The municipality will provide us with a clearance amount which is for the account of the Seller/s.
   
• The purpose for obtaining the consent is to avoid the carrying over of possible historical debts of previous owners/the Seller to the Purchaser/s.

Body Corporate Figures and/or Home Owners Association Consent:

• If the property being transferred forms part of a sectional scheme or estate, Body Corporate clearance figures and/or a fee to the Home Owners Association is payable.
   
• The purpose of this is the same as for the municipal clearances and is likewise for the account of the Seller/s.

Upon receipt of the bond cancellation costs and clearance figures we will provide the Seller/s with their pro forma costs for the transfer. We will then pay the respective entities in order to obtain their proceed and/or consent to proceed with the transfer.

APPLICATION TO SARS FOR THE TRANSFER DUTY RECEIPT

• Another document we require in order to lodge the matter at the Deeds Office is a Transfer Duty Receipt issued by SARS.
   
• Depending on the type of Seller, either transfer duty or VAT will be payable to SARS.
   
• If the Seller is not VAT registered the Purchaser will be liable for payment of transfer duty. If the Seller is VAT registered the Seller is liable for payment of VAT. This will however depend on various ancillary aspects which we will advise on early during the transfer process.

SIGNATURE BY PARTIES

• During the process of attending to the first three steps we will draft the transfer documentation and arrange with the parties for a date and time suitable to them for signature of the transfer documentation.
   
• We will advise the parties of the original documentation to bring along to the consultation which we will either need to keep in our possession for the transfer or which we will need to make certified copies of for the necessary FICA verification.

FOR LODGEMENT & LODGEMENT

• Upon receipt of the original guarantees, consents, transfer duty receipt, signature by the parties and FICA verification we will be ready to lodge the matter at the Deeds Office.
   
• We will timeously advise the bond attorneys and bond cancellation attorneys that we are ready for lodgement and inquire whether they have the required consent from the respective banks to lodge the matter at the Deeds Office.
   
• Once confirmed by these attorneys we will arrange a date for lodgement. Kindly note that the three attorneys lodge simultaneously as the transfer, bond registration and bond cancellation occurs simultaneously at the Deeds Office.
   
• After lodgement at the Deeds Office, registration takes between 7 – 10 workdays to occur. We will keep all parties updated throughout regarding the progress.

REGISTRATION

• On the date of registration we will provide the parties with written confirmation of the registration together with the process to be followed by the parties for the opening and closure of the municipal accounts by the respective parties.
   
• The bond attorneys will simultaneously advise the relevant bank of the registration and the bank will then authorise payment in accordance with the guarantees provided to us.
   
• Depending on the bond bank the monies will reflect in our trust account within 2 – 3 days of registration and payment to the parties will be made as soon as possible thereafter.
   
• We will also notify the Body Corporate (if applicable) of the registration in order for them to process a refund to the Seller.