The Property Transfer Process in South Africa: A Brief Step-by-Step Guide for Sellers and Buyers

1. Introduction

Transferring property ownership in South Africa is a legal process that involves several stakeholders and can take around 6 – 12 weeks, depending on various factors. This guide outlines the standard steps involved in a residential property transfer.

2. Key Role Players

Seller – Current owner of the property.
Purchaser – Buyer of the property.
Estate Agent – Facilitates the sale.
Deeds Office – Legal body authorised by the South African government to register the property into the name/s of the purchaser.
Conveyancer (Transferring Attorney) – Legal professional responsible for transferring ownership.
Bond Attorney – Registers the purchaser’s bond (if applicable).
Cancellation Attorney – Cancels the seller’s existing bond (if applicable).

3. Step-by-Step Transfer Process

Step 1: Sale Agreement Signed / Deed of Sale Signed

A written Offer to Purchase (OTP) is signed by both parties.
This becomes the Sale Agreement, a binding legal contract.
Tip: Ensure all conditions (e.g. bond approval, inspections) are clearly stated in writing.

Step 2: Conveyancer Appointed

The seller usually appoints the transferring attorney (conveyancer).
The conveyancer opens a file and begins the legal process of transferring ownership.

Step 3: Bond Application (if applicable)

The buyer applies for a home loan from a bank.
On approval, a bond attorney is appointed by the bank to register the bond.

Step 4: Fulfilment of Suspensive Conditions

Conditions like bond approval, deposit payment, or due diligence must be fulfilled before transfer can proceed.

Step 5: Drafting Transfer Documents

The conveyancer requests:
Original Title deed
Rates clearance figures from the local municipality
Transfer duty receipt (from SARS – South African Revenue Service) or exemption certificate
FICA documents (proof of identity and address etc from both parties)

Step 6: Signature of Transfer Documents

Buyer / Seller sign applicable documents such as:
Power of attorney to transfer
Transfer duty declaration
Affidavits and other required forms

Step 7: Payment of Transfer Costs

The purchaser is responsible for payment of:

Transfer duty
Conveyancing fees

Step 8: Clearance Certificates Obtained

Rates Clearance Certificate from the local municipality
Levy Clearance Certificate from the body corporate (if sectional title)
Compliance Certificates (e.g. electrical, gas, beetle) – usually arranged by the seller

Step 9: Lodgement at the Deeds Office

All documents are lodged at the Deeds Office by the conveyancer.
The Deeds Office examines documents and, if all is in order, registers the transaction.
Expected Processing time: Approximately 7–10 working days.

Step 10: Registration

Once registered, ownership officially passes to the purchaser.
The conveyancer informs all parties and accounts for the finances.

Step 11: Financial Settlement

The conveyancer:
Pays the seller the net proceeds of sale
Pays the municipality, estate agent, and other costs from the trust account

Final Notes

Professional Assistance: Always use a qualified conveyancer and seek advice if unsure.
Communication: Regular updates from conveyancers help manage expectations and timelines.

Should you have any questions kindly contact me on Phillip@sllaw.co.za