Avoid transfer delays

BUYERS and sellers usually want to conclude their property transaction as quickly as possible but delays are common in the transfer process.

Roger Lotz, franchisee for the Rawson Helderberg Group, explains the most common delays:

• Compliance certificates: Sellers must provide these for electrical, gas and electric fence installations as a condition of sale.

Beetle-free and water installation compliance certificates could also be needed. Lotz says many banks require them before they will approve a bond, so get them upfront as they can last up to two years.

• Buyer financing: Getting pre-approved for finance speeds things up significantly.

• Conveyancing documents: The conveyancing attorney usually begins preparing the transfer while the buyer is securing finance. They will need to Fica both the buyer and the seller.

• Rates clearance: Lotz says rates clearance shouldn’t take more than a week or two, but Covid shutdowns have led to huge backlogs in some areas.

Sars must issue a transfer duty receipt that has to be lodged with the Deeds Office to conclude the sale. Lotz says they use this as a way of enforcing tax compliance across all other tax types. That means both the buyer and the seller need to be registered and tax compliant before the transfer duty application will be processed.

• Deeds office: Once the conveyancer has arranged the documentation, they can lodge the transfer at the Deeds Office for registration.

However, the Deeds Office is also struggling with massive Covid-related backlogs.

There are procedures to be followed before you can take transfer of a home. PICTURE: GREG RIVERS/UNSPLASH