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What Happens After The Agreement of Sale Has Been Signed?
Once the attorney has received a copy of the Agreement of Sale and a copy of the relevant documents mentioned herein, and once there is confirmation that the Purchaser’s bond has been approved, the following steps will be taken:
If there is a bond over the Property, the title deeds of the property will be applied for and cancellation figures from the existing bond holder will be requested. The bondholders will then issue cancellation figures and forward the existing bond to their attorneys, instructing them to cancel the bond. The Seller is required to maintain his bond repayments until registration.
The transfer documents will be drawn and arrangements made for signature by the parties. The Purchaser will be required to carry the Transfer Costs.
Once the transfer costs have been paid, the attorney will pay the transfer duty to the SA Revenue Services and obtain a transfer duty receipt.
The attorney will apply for a rates and levy clearance certificate (in the case of a sectional title unit). This is to ensure that the Seller’s rates/levies are up to date prior to registration.
As soon as the cancellation figures are received from the bondholder, the attorney will request guarantees from the new bond attorney.
Once the guarantee has been received, it will be forwarded to the cancellation attorney, who will in turn apply for consent for cancellation of existing bond.
The attorney now liaises with the bond cancellation attorneys to arrange lodgement in the Deeds Office.
This process should take approximately eight to ten weeks.
Should the transfer depend on the sale of the Purchaser’s property, the time taken for registration of the Seller’s Property into the Purchaser’s name may be delayed, but often the respective transferring attorneys are able to link the two transfers to save time.
What Happens After Registration?
Guarantees are payable on date of registration. The balance of the amount that was paid will show approximately 24 hours after registration.
The existing bond gets cancelled and the outstanding bond settled. Credit due to the Seller after cancellation of the bond is paid by the bank within 10 – 14 days after registration.
The Conveyancer prepares the final statement of accounts for the Seller and Purchaser.
The Seller/s final statement of account is debited with the cancellation costs of the existing bond and commission. The account will either be debited or credited (whichever the case may be) with the pro rata levies as well as pro rata occupational rent, if applicable.
The Purchaser is responsible for the rates/levies from date of registration and the Conveyancer calculates the pro rata portion due by the Purchaser from date of registration to the end of the month in which a clearance certificate has to be obtained.
Any proceeds or credit due to either party should be paid no later than the day after registration.