Understanding Delays in the Property Transfer Process in South Africa

Buying or selling a property is usually an exciting journey. However, it’s essential to acknowledge that this process is not without its challenges. In this article, we delve deep into the common reasons for delays in property transfers, shedding light on potential hurdles that may dampen the excitement of moving into your new property.

Common Reasons for Delays

Delays Caused by Incomplete or Inaccurate Deeds of Sale

One of the initial steps in any property transaction is the signing of the Deed of Sale. This document sets the tone for the entire process. Delays can ensue if it is incomplete or inaccurately completed, a responsibility that can fall on the buyer, seller, or real estate agent. This document is pivotal for the subsequent bond application process, and any issues must be resolved before moving forward.

Validity of the Deed of Sale

Ensuring that the Deed of Sale is valid and binding between parties is crucial. If not, a new valid contract must be established, further elongating the process.

Delays Due to Failure to Provide Personal Information or FICA Documents

Another stumbling block can be the failure to provide necessary personal information or FICA (Financial Intelligence Centre Act) documents promptly. Failure to do so can hinder the transaction’s progress, making cooperation from both parties vital.

Delays Related to Signing Bond and Transfer Documents

Timely signing of relevant bond and transfer documents is crucial. Any delays in this regard can have a cascading effect on the entire process, causing further setbacks.

Issues with Original Title Deed

The seller’s provision of the original title deed of the property is essential. However, if this document is lost or damaged, obtaining a duplicate from the Deeds Office can be a time-consuming process, sometimes taking up to three weeks.

Cash Shortfall

A smooth property transfer often hinges on cash flow. Delays can be triggered if buyers are unprepared for additional costs beyond the purchase price. Similarly, sellers may face cash flow issues if the selling price doesn’t cover an outstanding bond.

Transfer Duty Receipt and Bond Cancellation

A Transfer Duty receipt is a prerequisite for conveyancers to initiate the registration process. The buyer must pay the transfer costs to obtain this receipt. On the other hand, sellers must provide at least 90 days’ notice to cancel their existing bond, resulting in a potential three-month delay if this notice is not given.

Role of the Transferring Attorney

The transferring attorney plays a central role in coordinating various aspects of the transaction. This includes notifying mortgagees and initiating the bond cancellation process, which can be delayed due to notice periods.

Obtaining Certificates and Consents

Obtaining certificates, receipts, and consents can be time-consuming. These include rates clearance certificates, transfer duty receipts, and homeowners’ association consent, among others.

Delays Due to Property Inspections

Property inspections by professionals, such as plumbers or electricians, may uncover the need for significant repairs or improvements before certificates are issued, causing delays.

Delays in Deceased Estate Transactions

In transactions involving deceased estates, obtaining the consent of the Master of the High Court is a prerequisite. Delays may occur if certain requirements are not met.

Simultaneous Lodgement at the Deeds Office

To expedite the process, all attorneys involved must simultaneously lodge documents at the Deeds Office. This step requires approval from the mortgagee and consents for bond cancellation.

Deeds Office Time Frames

Time frames at the Deeds Office can vary, and they may also change during the course of a transaction. To stay informed, it’s advisable to consult your conveyancer for up-to-date information.

Understanding the intricacies and potential delays in the property transfer process is essential for a smoother experience. While delays are sometimes inevitable, careful planning, cooperation, and seeking professional guidance from a property law attorney can help navigate these hurdles effectively.