By Marlon Shevelew
In this month’s law feature, we focus on common issues affecting the transfer of properties. Our expert in the field is Marlon Shevelew of attorneys, Marlon Shevelew & Associates Inc. Marlon provides us with information regarding conveyancing and problems with conveyancing, and provides advice about how to avoid delays.
Role players in a property transaction
Property Practitioners: Experienced estate agents guide clients through the process. A smooth transfer is more likely if the agent and transferring attorney have a good working relationship.
Transferring Attorney: The transferring attorney co-ordinates with various parties like SARS for transfer duty and the municipality for rates clearance certificates. Timely submission of necessary documentation is crucial. The transferring attorney also liaises with the bond registration attorney and/or bond cancellation attorney.
At what stage of a property transfer can a delay occur?
Delays in property transactions can occur. After a sale is confirmed, the transfer process involves multiple parties, procedures and documentation, and each of these elements carries risks of delays.
What sort of situations most often result in delays in the transfer of properties?
Common reasons for delays include:
● Out-of-sync timelines, especially in linked deals where funds from one sale are needed for another;
● The Purchaser is struggling to secure bond finance. Sometimes the parties have to extend the due date for the transfer so that more time is available for the finalisation of the bond by the bank;
● Incorrect budgeting for transfer and bond registration costs;
● The seller having to evict a tenant for the transfer to proceed;
● Unforeseen circumstances such as a burst geyser or leak in the roof that must be repaired;
● Lost title deeds – This is a common scenario when the property is unbonded and the seller has misplaced the title deed;
● Difficulties getting the documents signed by all the parties, especially if, for instance, one of the parties is travelling or does not live in South Africa;
● Delays with securing the various compliance certificates that are needed, e.g. an electrical compliance certificate;
● Delays in receiving rates clearance certificates from Council and transfer duty receipts from SARS
Tips for buyers and sellers
Sellers
● It’s advisable for homeowners considering selling to give a 90-day notice of bond cancellation to their bank. This helps avoid late cancellation fees and delays.
● Ensure you know where to find the original title deed.
Buyers
● Approaching a bond originator – these are financial institutions like ooba and Better Bond – at an early stage is good because it will help you to know what price category you should be considering when looking for a property to buy.
● Clients should be transparent about their financial situation from the start. This allows agents to facilitate the process, including pre-qualification by a bond originator and a credit check.
● Buyers, especially those who are self-employed, should avoid making expensive purchases that could affect their creditworthiness and should apply for pre-approved bonds to avoid a lengthy bond application procedure.
All parties
● Effective communication and co-operation with transferring attorneys and agents is key.
● For clients outside South Africa, granting power of attorney to someone within the country can help.
• Published in the March 2024 issue – Click here to start reading.
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