1. Clarify your obligations

The Deeds Office is often blamed for delaying property transfers.

Delays due to Deeds Office backlogs were extreme during the peak of the COVID-19 pandemic. Now, however, protracted delays are unusual. More often, bottlenecks occur because the buyer or seller fail to meet their obligations timeously.

Sometimes, this is because simple steps are overlooked.

To make sure the transfer of your property goes through as quickly as possible, clarify exactly what’s required from you. Then act to meet these requirements as efficiently as you can.

2. Gather all essential documents

Perhaps the most common hold-up in the processing of a property transfer is a delay in gathering the necessary certificates and paperwork.

Most people only start this process after an offer to purchase is signed and the conveyancer requests them.

There are numerous documents a seller has to organise before a transfer can take place. Many of these can be sorted before or when you put your property on the market.

Essential documents and certificates that can be sorted ahead of time include:

• • electrical compliance certificate
  • electric fence compliance certificate
  • gas compliance certificate
  • rates clearance certificate
  • taxes clearance certificate
  • sectional title levy clearance certificate
  • house plans
  • original title deeds
  • National Home Builders Registration Council Certificate (if your home if less than five years old).

Not all of these documents are needed for every sale, but it’s never a waste of time to organise them ahead of time. Many municipalities require certificates to be in place even if there’s no sale pending.

If an initial sale agreement falls through, many of the certificates and documents can still be used.

However, you’ll need to double-check how long they remain valid. For example, most clearance certificates are valid for 60 days.

3. Budget for the costs of transfer

You will incur numerous transfer costs in the process of selling a property, from the costs of compliance certificates to repairs of your home. If you don’t have the cash to pay for them, you will delay the transfer and risk losing the sale.

Establish how you will finance these costs upfront. Once you have sold your property, you can access funds with property bridging finance from Lamna. Find out more here.

4. Repair defects before the sale

Avoid time-consuming and costly negotiations and repairs by fixing all defects in your home before you put it on the market.

If a buyer makes demands about repairs – especially defects that have been “covered over” – transfer may be halted or delayed. If you can’t afford to repair defects, disclose them up front and write them into the sales agreement.

5. Sign a power of attorney

If you’re moving overseas or are travelling abroad while the sale of your property is taking place, ensure that you have signed a power of attorney beforehand.

In your absence, someone must be able to legal represent you in the processes of transfer – or there will be very long delays.

6. Withdraw funds from an access bond

If you’re going to withdraw funds from an access bond to pay for the costs involved with preparing a property for transfer, do it upfront.

Your home loan will be frozen once the conveyancer requests bond cancellation figures.

7. Give 90 days’ notice to your bond lender

Most lenders require 90 days’ notice that you’re going to cancel your bond or you’ll be penalised. Give early notice to avoid paying a penalty.

That said, the penalty from most bond holders is one month’s instalment. If you haven’t given 90 days’ notice of cancellation and don’t want to delay the transfer, simply pay the penalty.

8. Avoid an offer of sale that contains conditions

If you want a speedy transfer, avoid an offer that contains lengthy conditions that could delay proceedings. These include the purchaser having to sell a property before proceeding.

9. Ensure you have the original title deeds

Employ a conveyancer upfront to establish that the original title deeds of your property are still held by your bank or bond holder. Many title deeds have been lost by banks.

Replacing a lost title deed involves an application and advert in the press that takes five weeks, an unnecessary delay. If you no longer have a bond on your property, ensure you have the original title deed.

10. Establish if your transfer is straightforward

Some transfers are unusual and more complex than others. These can cause lengthy delays.

For example, an estate transfer – the sale of a property owned by someone who has died – requires an endorsement from the Master of the High Court. The sale of a property in a family trust or closed corporation requires approvals from trustees.

How to get a property seller’s advance

If you’ve sold your property and are waiting for the transfer to register, you can access up to 80% of the sale proceeds now, in the form of bridging finance.

This can enable you to cover costs in the interim. For example, you may need to cover registration costs and costs associated with moving home yourself.

The application process is straightforward, and we’ll make contact with your attorney to complete all the necessary paperwork. Once the application is approved, the funds will be paid to you immediately. Upon successful registration of your property, your attorney will repay Lamna on your behalf.

Currently hoping to speed up a property transfer in South Africa? For more information about getting bridging finance while you wait, contact us on 086 111 2866 or simply complete and submit our online application form.