An Offer to Purchase is signed between Seller and Purchaser.

The Purchaser pays the deposit/full purchase price to the transferring attorney. All funds is paid into an interest.

The bond is approved and the bond attorney receives an instruction electronically via the internet.

The tansferring attorney requests:

• Copies of the Seller and Purchaser’s ID documents.
• Marriage certificate and Antenuptial contract (if applicable)
• If either party is a Company, Close Corporation or Trust registration documents would be requested.
• FICA documents from the Seller and/or the Purchaser (proof of residence not older than 3 months).
• Title Deed and balance on outstanding mortgage loan from present Bondholder as well as the details of the attorneys who will cancel existing bonds.

The transferring attorney applies for cancellation figures, (if there is an existing bond over the property) and rates clearance figures. (Clearance figures are to be paid in advance for six months) If the property is a sectional title a clearance figure is requested from the relevant Body Corporate or managing agent.

The transferring and bond attorneys prepare the documentation for the Seller and Purchaser to sign.

The Purchaser must pay the transfer costs:

• Transfer duty payable to SARS when a property is transferred from one person to another.
• Transfer Duty is calculated as follows:
• On the first R900 000.00 of the purchase price no transfer duty is payable,
  *R900 001.00 to R1 250 000.00 – 3% of value above R900 000.00;
  *R1 250 001.00 to R1 750 000.00 – R10 500.00 + 6% of the value above R1 250 000.00;
  *R1 750 001.00 to R2 250 000.00 – R40 500-00 + 8% of value above R1 750 00.00;
  *R2 250 001.00 to 10 000 000.00 – R80 500 + 11% of the amount above R2 250 000.00. *R10 000 001.00 and above – R933 000 + 13% of the amount above R10 000 000.00.
• If the property is sold as a going concern, the transaction is zero rated.

The Seller must pay :

• Rates and taxes (up to six months in advance).
• Sectional title or Body Corporate levies ( up to six months in advance).
• Cancellation fee for the cancellation of the existing bond (R2500.00 – R3500.00).
• If the seller is a Vat vendor, VAT of 15% is payable and no transfer duty is payable.

The transferring Attorney pays:

• The transfer duty to SARS in order to obtain transfer duty receipt.
• The municipal levies in order to obtain a rates clearance certificate.
• The levies to the relevant Body Corporate or HOA in order to obtain the levy and insurance certificate.

The transferring attorney requests guarantees from bond attorney.

The transferring attorney requests guarantees from bond attorney.

Transferring attorney pays cancellation attorneys their costs and issue them with guarantees.

Transferring attorney obtains Electrical Compliance Certificate from Seller.

Documents are lodged in the Deeds Office when the transfer, bond and cancellation attorneys are ready.

Between 8-10 working days after lodgment the transfer, bond and cancellation are registered. Occupational rent is payable by the Purchaser to the Seller if the Purchaser occupies the property before it is transferred into his/her name.

Guarantees are paid out the day following registration and final accounts are sent to the Seller and Purchaser (with payments, is applicable).

After microfilming and capturing on the Deeds Office data system, the new Title Deed and bond are released from the Deeds Office. Title Deed and mortgage bond are sent to the Bondholder (Bank), or (new owner if no bond is registered) for safe keeping.