Transferring Ownership of Property: What You Need To Know

Transferring Ownership of Property in South Africa

The process of transferring ownership of a property from one party to another is referred to as a transfer of property in layman’s terms. The legal term that is used to refer to a property transfer is the ‘conveyancing process’. A transfer of property ownership most often occurs following the sale of a property, or when in a deceased estate the property is either inherited/sold to someone else. 

The owner must be in possession of a document called the deed of transfer or deed as proof of ownership. For the deed to be considered valid, it must be registered with the deeds office and bear the seal of the Deeds Office.

The Role of Conveyancing Attorneys in a Property Transfer 

It is a legal requirement in South Africa that all property transfers be completed by a conveyancer or conveyancing attorney. A conveyancing attorney is responsible for ensuring that the process meets the strict requirements of the Deeds Office regulations. 

As per the Deeds Registries Act No. 47 of 1937 S. 15 substituted by s. 4 of Act No. 170 of 1993, by  Proclamation No. R.9 of 1997 and by s. 2 of Act No. 93 of 1998, all transfer deeds, mortgage bonds, title certificates, and registration certificates must be prepared by a conveyancing attorney in order to be attested, executed and registered. 

What Exactly Is an Agreement of Sale?

An agreement of sale is a contract stipulating the terms and conditions of a property’s sale. The buyer and the seller negotiate these terms and conditions amongst themselves or an estate agent assists them regarding same. An agreement of sale contains important information including,  the terms and conditions of the sale, personal information of both parties, the purchase price and deposit amount and how the payment will be made for example: cash purchase or by way of a mortgage bond, and a description of the property. 

An agreement of sale is only valid when the following conditions are met:

•  All parties involved must reach an agreement
•  The parties concerned must have contractual capacity
• The agreement of sale is in writing (oral agreements are not legally binding) 
• The seller and the buyer have both signed the agreement of sale 
•  The seller must be able to deliver the property that has been sold to the buyer

A written agreement of sale is an essential part of the process of transferring ownership of property. Transfer of property ownership cannot occur without a valid written agreement of sale as well as adherence to the terms and conditions stipulated in the written agreement. 

Transferring Ownership of Property: The Property Transfer Process South Africa 

Transferring ownership of property in South Africa can be a confusing and sluggish process – much to the frustration of both the seller and the purchaser. There are several steps that take place in order for a transfer of property ownership to occur. From signing the offer to purchase, the conveyancing process, payment of transfer duties/VAT to SARS if applicable, collection of clearance certificates from Municipality and or the Body Corporate and deed registration in the Deeds Office. 

Both the seller and the purchaser must sign the offer to purchase as a first step. Following bond approval, steps are taken to cancel the current owner’s bond, if applicable, to register a new bond for the buyer and then to transfer the property to the new owner. Once transfer duties/Vat have been paid, all required documentation and certificates will be lodged at the Deeds Office. Shortly thereafter the deed will be registered at the Deeds Office. This concludes the property transfer to the new owner. 

Read our article Buying a Property: A Guide To Conveyancing and Conveyancing Fees, for an in-depth look at the steps of a property transfer. 

To ensure that the transfer of property ownership proceeds timeously, and is concluded successfully, it is advisable to employ the services of conveyancing attorneys with ample experience and knowledge of such proceedings. 

Alan Levy Attorneys: Efficient Conveyancing, Property Transfers and Notarial Services in Johannesburg 

According to South African legislation, the process of transferring ownership of property referred to as conveyancing, must be performed by a conveyancer. Before selling or buying a property, research and choose an attorney that will be able to help you quickly and seamlessly transfer ownership. Our team of experienced conveyancing attorneys at Alan Levy Attorneys offer the best legal advice for matters concerning conveyancing, property transfers and notarial services in Johannesburg and Gauteng. Contact Us for assistance with any of these matters. 

This article does not replace professional consultation with an attorney and is not intended as legal advice. This article should be seen as an educational summary of the applicable legislation and procedures pertaining to transferring ownership of property in South Africa. Should you require assistance to transfer ownership of property, Contact Alan Levy Attorneys today.