After Sales Process

For all your conveyancing needs contact

  • Tonkin Clacey attorneys on +27.11.880.6695
  • Yammin Hammond inc on +27.11.616.4314

Introduction

At Jawitz Properties we believe that it is important for you to know what happens once you've signed on the dotted line.

This information is presented as a service by us in the belief that it will help you to better understand the whole procedure of transfer of the property into your name once you have bought your new home.

Deposit

The deposit can be considered a sign of good faith and intention. In terms of the Agreement of Sale, it must be paid immediately upon advice from us as your agent that your offer has been accepted by the seller.

It must either be paid to us or to the transfer attorney - whoever is designated in the Agreement of Sale. Either way, you are protected in that the deposit is held in an interest bearing trust account pending registration of transfer, interest to accrue to you and payable on transfer.

Remember it is your legal obligation to pay the deposit timeously - it is not anybody's duty to ask for it. Failure to pay the deposit could result in your being in default of the Agreement.

Attorneys

The seller nominates an attorney to attend to the Transfer of the property from himself to you.

There can be as many as three attorneys involved in your purchase, depending on circumstances:

  • an attorney who will cancel any existing bonds over the property on behalf of the current bondholder
  • another who, duly instructed by the relevant bank, will register your new bond
  • and a third who will attend to the transfer itself.

Bonds

Many banks have out-sourced their bond business to companies who specialise in mortgage origination. Jawitz Properties uses Ooba, who are mortgage (bond) originators representing the major banks in South Africa and who specialise in obtaining bonds for our purchasers at highly competitive rates.

We have our own in-house dedicated Ooba specialist home loan consultants who will assist you with every aspect of your home loan.

If the Agreement of Sale is subject to a loan to be secured by a bond over the property, you will be contacted by our specialist loans consultants. Please make the necessary arrangements with them to fill in and sign the bond application timeously. It will then be submitted by them to the relevant bank.

The bond has to be granted within a certain period of time (usually within 10 working days from date of acceptance of your offer by the seller) and it is imperative that your application is processed within that specified time period.

Once your bond has been granted, you will be advised by the bank to call on their attorney to sign acceptance of the bond and to sign the bond documents.

Please act promptly on their instructions for three reasons. Firstly, your prompt action may speed up the entire process of transfer, minimising the amount of occupational interest you may have to pay. Secondly, the bondholders may cancel any loan not taken up fairly quickly. Thirdly, no guarantees can be issued by the bond attorney until the bond documents are signed.

It is worth remembering that the bond business is highly competitive and even though you may have your own arrangements with your bank, it is highly possible that our loans consultants form Ooba will be able to get you a better interest rate on your bond.

Transfer Documents

After you bond has been formally approved, you will be called in by the transfer attorney to sign the transfer papers. Again, please act promptly upon this request. Some time before this you will be called up by him to furnish particulars of your ID number, date of birth, marital status and, if applicable, your original ante-nuptial contract.

A delay in transfer can occur when the price you paid for your property is lower than the municipal valuation. The Receiver of Revenue may call for an explanation as to why the price is relatively low as he is entitled, if he sees fit to do so, to charge duty on the higher figure.

Guarantees

In terms of the Agreement of Sale, you have to secure the balance of the purchase price by the payment of cash or delivery of guarantee. This is the amount still to be paid by you after deduction of the deposit and the bond amount. (The bond guarantee will be furnished by the bank granting it or by their attorney). Payment must be made to the transfer attorney by the date specified. Any cash will be held in trust until transfer.

Check this date carefully. Remember, it is not necessary for the attorney to chase you - it is your responsibility to contact him well in advance of the guarantee date to ask in what form and for what amounts the guarantees are required.

If the Agreement of Sale is subject to a loan to be secured by a bond over the property, you will be contacted by our specialist loans consultants. Please make the necessary arrangements with them to fill in and sign the bond application timeously. It will then be submitted by them to the relevant bank.

Furnishing the guarantees promptly will help to expedite the transfer. Failure to do so may result in your being in breach of Agreement.

Please remember that you may be required to furnish more than one guarantee - obviously never totalling more than the balance of the purchase price still owing.

For example, if there is an existing bond registered against the property which you've bought, it is acceptable procedure for the purchaser to be asked to furnish a separate guarantee to cover this possibility, if required to do so by the seller.

Naturally, all your guarantees are only payable against the transfer of the property into your name and the cancellation of any existing bonds registered against the property.

Once you have signed all the transfer and bond documents, paid costs and furnished guarantees, all the necessary documents are lodged with the appropriate Deeds Registry Office by the transfer and bond attorneys. You will be advised by the transfer attorney when registration of transfer of the property has taken place.

Only at this stage will you become the registered owner of the property, and all risk and liability as well as all benefits will become yours.

Disbursements (Transaction Costs)

These are costs related to transfer and the bond.

Bond

When requesting you to sign the bond acceptance, the bond attorneys will also ask you to pay them the bond registration fees (plus value added tax), stamp duty, inspection fee, interim interest on the bond, and miscellaneous postages and petties as well as the deeds office levies.

Transfer

On signing the transfer papers, you will be requested to pay the balance of the purchase price, as discussed under "Guarantees".

You will be asked to pay by cash or cheque to cover transfer duty, provisional assessment rates or levies (in advance and calculated from the anticipated date of transfer). This pro-rata amount for rates or levies will be reconciled by the attorney on the date of transfer. There will also be attorney fees (plus VAT), deed office fees, postages and petties. Note that generally speaking the attorney cannot proceed with lodgement of documents until these amounts have been paid.

The Deeds Registries Act states that transfer documents cannot be lodged in the Deeds Office without the transfer duty receipt from the Receiver of Revenue. So in order to avoid any delays, it is important to pay these costs promptly.

If you have bought a new property from a developer and Value Added Tax is applicable, (included in the purchase price and paid for by the developer), then no transfer duty is payable.

NOTE: Transfer duty, stamp duty, transfer fees, deeds office fees and bond registration fees are set amounts, determined on sliding scales.

What the Transfer Attorney Still Has To Do Before Transfer Can Be Effected

Rates Clearance Certificate

Before a property can be transferred, any monies owing by the seller for rates and taxes to the municipality must be paid in full in advance. One of the first things the transfer attorney does is to write to the relevant municipality asking for a Rates Clearance Account stating how much is owed. Upon receipt of the account, the transfer attorney will usually advise the seller accordingly and ask for a covering cheque. The municipality will only issue a Rates Clearance Certificate once the account has been paid in full. The Rates Clearance Certificate is issued for approximately a month after the anticipated date of registration. The attorney will then pro-rata and reconcile the amounts owed to each party after the date of registration.

Cancellation of any existing bond

In most cases, a bond is still registered against the property and no property can be transferred without the existing bondholder being paid out. The transfer attorney writes to the bank concerned, asking for the title deeds to the property, and the amount required to cancel the bond.

Any costs incurred in cancellation are for the seller's account

In all probability you the purchaser will be asked by the transfer attorney to furnish a guarantee for this amount in favour of the bank concerned as part of your purchase price. Or, if the seller has no bond, then he usually has the title deeds to the property in his possession and he will be asked to produce them by the transfer attorney.

Deeds Office search of Title Deeds

Simultaneously with the procedures outlined above, the transfer attorney will conduct a search at the Deeds Office of the title deeds of the property. This is to ensure that there are no interdicts registered against it and to verify its' correct description as well as the spelling of the name of the seller, his date of birth and ID Number.

What You Need To Know Specifically About Sectional Title

Don't be intimidated by the different terminology used here. Sectional Title Ownership means that you actually own your own unit (a section) and in addition you have ownership of a undivided share of the land and common property of the complex.

Levy Clearance Certificate

Before transfer can be effected a "Levy Clearance Certificate" must be obtained from the Body Corporate (or the managing agents acting on their behalf), certifying that all levies have been paid in full. The certificate must be valid for a period beyond the date of transfer, and the necessary amount will be paid by the purchaser through the transfer attorney, and credited in the Body Corporate's book of account. A suitable adjustment will be done on transfer.

Basic Sectional Title Terminology

A Section

A "section" is the interior of an apartment or townhouse you have bought. It is an area confined by walls, a floor and a ceiling, and is depicted as such on a registered Sectional Plan.

Common Property

The "common property" consists of land and those parts of the buildings which are not sections. The common property is jointly owned by all the persons who own sections in the development scheme. Examples of common property are staircases, external passages, roof, swimming pool and land on which the building is built.

A Unit

A "unit" consists of a section together with an undivided share of the common property apportioned to the section, in accordance with the participation quota. The only entity capable of ownership is a unit - neither the section nor the common property can be separately owned.

An Exclusive Use Area

An "exclusive use area" is an area of common property reserved and allocated for the exclusive use and enjoyment of one owner to the exclusion of all others.

Participation Quota

The "participation quota" is a fraction calculated by the division of the floor area of the section concerned by the total floor area of all the sections in the scheme. The participation quota determines the extent of an owner's share in the common property and his levy contributions.

Body Corporate

The "body corporate" is a legal entity and is responsible for the control, management and administration of the complex. As a person becomes an owner of a unit in the scheme, he automatically becomes a member of the body corporate.

The Trustees

The "trustees" are elected by the members of the body corporate to perform the functions of the body corporate. The trustees meet on a regular basis and are responsible for the day-to-day running of the development scheme, but need not be owners in the scheme.

Levy

The "levy" is an amount paid to the body corporate or the managing agents as the owner's share of the estimated running expenses. The common expenses would include rates and taxes, insurance, wages for caretakers, water and electricity for common property, management fees (where managing agents are employed to administer the scheme), audit fees, lift maintenance and garden services. The levy is payable by each owner on a monthly basis. Usually water and electricity for the unit is paid for separately.

Rules: Two types of rules generally exist:

  1. Prescribed Management and Conduct rules
    Rules set down in terms of the Sectional Title Act at the outset of the scheme which can only be changed by unanimous resolution of all owners. An example would be to hold an annual general meeting and to establish a levy budget.
  2. House Rules
    Rules made by the Board of Trustees for day-to-day running matters to promote harmonious relations between owners. An example would be a limitation on the ownership of pets.

What You Need To Know About Clusters

All erven within a cluster development are held by freehold title.

Most cluster developments are liable for the maintenance of the internal services and roads within the complex. Section 21 companies (i.e. a company incorporated not for gain) are normally registered to take transfer of the internal roads and to maintain the internal services within the development. Owners of erven in the development are all members of the Company and are required to pay a monthly levy to the Company as determined by the board of directors from time to time. This is similar to a levy in a sectional title scheme.

When you sell your property in a cluster development, the Section 21 Company is required to furnish a clearance certificate certifying that all levies are paid up to date of transfer.

Some Reminders

Water, Electricity and Gas

Remember to visit your new local municipal authority to sign service supply agreements and to pay the deposit for connection of these services a few weeks before moving into the property. You may require authorisation from us to do so (that is, confirmation that you have purchased the property). The chances are that the seller of the property will have instructed the municipality to read meters on the last day of his occupation and will have requested the return of his deposit - or its transfer to another address within the same municipality.

In this event, if you have not paid your deposit, you may find yourself without power or water on date of occupation. If you have bought a sectional title unit, the above will not apply.

Electrical Certificate of Compliance

In terms of the Agreement of Sale the seller has undertaken to provide you with the prescribed Electrical Certificate of Compliance, either on date of occupation or registration of transfer - whichever is the earlier. Please ensure that you obtain the certificate directly from the seller.

Moving

Movers will be cheaper during the month and during the week than at month ends and weekends. Book your movers well in advance and remember that some movers do not have insurance. Ensure that your belongings are insured during the move.

Telephone

Make your application well in advance of your move. 

Occupational rent/interest

If you take occupation of your property prior to transfer, you are liable to pay the agreed occupational rental (as per the agreement of sale) directly to the seller on the first day of occupation and monthly thereafter on the first day of each month until registration of transfer. Likewise, if the seller is in occupation after transfer has been registered, you have to collect the agreed occupational rental directly from the seller.

In the event of transfer being registered after you've already paid occupational rent, the seller must refund to you the proportionate amount, calculated from the date of transfer until the end of that month.

Insurance

If you're getting a bond on your new property, the bank granting the bond will automatically insure the property - the cost is for your account. It is also considered advisable to cover the amount of the bond with life insurance to give you and your family greater security. If you choose to do so, this can be arranged either through your own insurance broker or the bank's broker. However, if you're paying cash please make sure that you insure the property through your own broker, effective from date of transfer of the property into your name. In the case of a purchase of a sectional title unit the body corporate must insure the unit and your share of the premium is included in the levy.

Bond repayments (after transfer has been registered)

Try if possible to make your bond repayments before the end of the month prior to the month in which the bond payment is due. Also to pay a bit more than the minimum amount required. You will find that by paying an extra amount every month, you will reduce the term of your bond by years and save thousands of rands. Discuss this with us, our Ooba consultant or your financial advisor.

Speed is of the essence

The onus is on you to act timeously and it will be in your interests to keep in touch with the transfer and bond attorneys in order to speed procedures to transfer. If you experience any problems, please keep us fully informed so that we can be of assistance where necessary. It is important to remember that the cancellation of the existing bond, the registration of the new bond and registration of the transfer are done simultaneously in the appropriate Deeds Office.

We trust all the information given here will be of interest and assistance to you. Every effort has been made to ensure that it is correct. If you need our advice, remember that we are only a telephone call away and we will be happy to assist. Please feel free to call us.

Although every effort has been made in the preparation of this information, we cannot be held responsible for any errors or omissions.



Property Developments
Jawitz Property Developments
Current Property Developments

Proud Member of
Click Here

 
RELO Search

RELOHomeSearch.com is an exclusive service of the Leading Real Estate Companies of the World® real estate network.

Relo Home Search


 
Jawitz Properties | Elsewhere

Namibia

Namibia


Mauritius

Port Louis


Jawitz Properties | Terms & Conditions

Follow us on