Property Transfers in South Africa: Where to Start? | Barter McKellar

Buying or selling a property in South Africa involves a legal transfer process that can seem complex and overwhelming. Whether you’re a first-time homebuyer, a property investor or selling your existing home, understanding where to start with a property transfer is crucial to ensuring a smooth transaction.

At Barter McKellar, we specialize in property law and conveyancing, guiding buyers and sellers through the property transfer process with efficiency and expertise. In this article, we’ll outline the key steps involved in transferring property in South Africa, helping you navigate the process with confidence.

Step 1: Understanding Property Transfers

A property transfer refers to the legal process of transferring ownership of a property from the seller (owner) to the buyer. This process, known as conveyancing, must be handled by a conveyancing attorney, as required by South African law.

Who is Involved in a Property Transfer?

The following parties play a crucial role in transferring property:

• Seller – The current owner who is selling the property.

• Buyer – The person or entity purchasing the property.

• Conveyancing Attorney – A specialized property lawyer responsible for handling the legal transfer.

• Bond Attorney – If the buyer is financing the purchase with a home loan, the bank appoints a bond attorney to register the mortgage bond.

• Cancellation Attorney – If the seller has an existing bond on the property, this attorney is responsible for canceling the bond with the bank.

Step 2: Signing the Sale Agreement

The first formal step in a property transfer is the signing of the sale agreement (also known as the offer to purchase). This document is legally binding and outlines the key terms of the transaction, including:

• Purchase price and deposit requirements.

• Responsibilities of the buyer and seller.

• Conditions of sale (e.g., bond approval, property inspections).

• Transfer costs and timelines.

Important Considerations Before Signing:

• Ensure all terms are clearly defined to prevent misunderstandings.

• Verify that the property has no restrictive conditions, servitudes or disputes.

• Work with a property lawyer to review the agreement before signing.

Step 3: Appointing a Conveyancer

In South Africa, only a qualified conveyancing attorney can handle property transfers. The seller typically appoints the conveyancer, but the cost of the transfer is usually the buyer’s responsibility.

What Does a Conveyancer Do?

• Conducts a title deed search to confirm ownership and check for any legal restrictions.

• Prepares and submits transfer documents to the Deeds Office.

• Ensures compliance with all legal requirements, including municipal rates clearance.

• Works with bond attorneys to register the buyer’s mortgage bond (if applicable).

Choosing an experienced conveyancer, such as Barter McKellar, ensures that the process is handled accurately and efficiently, reducing the risk of delays.

Step 4: Paying Transfer and Bond Registration Costs

Before the transfer can proceed, the buyer must settle all applicable costs, including:

1. Transfer Duty (SARS Tax)

• If the property is valued over R1,100,000, the buyer must pay transfer duty to SARS.

• Properties below this threshold are exempt from transfer duty.

2. Conveyancing Fees

• Fees paid to the conveyancing attorney for handling the transfer process.

3. Bond Registration Fees

• If the buyer is taking out a home loan, bond registration fees must be paid to the bank’s bond attorney.

4. Pro-Rated Municipal Rates and Levies

• The seller must obtain a rates clearance certificate from the municipality, confirming that all municipal bills are up to date.

A conveyancing attorney will provide a detailed breakdown of these costs, ensuring transparency before proceeding.

Step 5: Signing Transfer and Bond Documents

Once the conveyancer has completed all legal checks, the buyer and seller must sign the transfer documents, which include:

• Power of Attorney to Transfer (allowing the conveyancer to lodge the transfer).

• Transfer Duty Declaration (submitted to SARS).

• Bond Registration Documents (if applicable).

Once signed, these documents are lodged with the Deeds Office for processing.

Step 6: Deeds Office Registration

The Deeds Office is responsible for legally recording property ownership changes. The registration process generally takes 7–10 working days, during which the following occurs:

1. Examination – Deeds Office officials verify all documents for compliance.

2. Approval – Once approved, the property is officially transferred to the buyer.

3. Title Deed Issuance – The new owner receives a title deed, confirming their legal ownership of the property.

Step 7: Final Handover of the Property

Once registration is complete:

• The purchase price balance is paid to the seller.

• The buyer officially takes ownership of the property.

• The estate agent (if applicable) hands over the keys.

At this point, the property transfer is legally finalized, and the buyer becomes the new registered owner.

How Long Does a Property Transfer Take?

The property transfer process typically takes 8 to 12 weeks, depending on various factors such as:
✔ Bond approval delays.
✔ Municipal rates clearance issues.
✔ Deeds Office processing times.

Working with a skilled conveyancer can help expedite the process and prevent unnecessary delays.

Why Choose Barter McKellar for Your Property Transfer?

At Barter McKellar, we provide expert conveyancing and property law services to ensure a smooth and hassle-free property transfer. Our team of experienced property attorneys will:
✔ Handle all legal aspects of your transfer.
✔ Ensure compliance with SARS, Deeds Office, and municipal requirements.
✔ Keep you updated throughout the process.
✔ Provide transparent and competitive pricing.

Whether you’re buying or selling a property, we offer personalized legal support to guide you every step of the way.

Need Assistance with a Property Transfer? Contact Us Today!

Let Barter McKellar simplify your property transfer with expert legal assistance. Contact us for a consultation today.