Changing ownership of properties In South Africa
1.
Understand What Change of Ownership Means
The seller (current owner) transfers all legal rights and responsibilities to the buyer (new owner).
Ownership is only official once the Deeds Office registers the transfer.
The process is handled by a conveyancing attorney, who ensures all legal requirements are met.
2.
Appoint a Conveyancing Attorney
A conveyancer is a lawyer specialized in property transfers.
Usually, the seller appoints the attorney, but this can be agreed otherwise.
The attorney handles:
Preparing transfer documents
Checking property title deeds
Ensuring rates, taxes, and levies are paid
Registering the property at the Deeds Office
Confirm that the attorney is registered with the Law Society of South Africa.
3.
Prepare the Required Documents
The following documents are typically required for a property transfer:
For the Seller:
Original Title Deed of the property.
Copy of South African ID or company documents if owned by a business.
Clearance certificate for municipal rates and taxes.
Bond cancellation documents if the property is financed by a bank.
For the Buyer:
Copy of South African ID or company registration documents.
Proof of funds or home loan approval (bond approval from a bank).
For the Property:
Offer to Purchase (OTP) signed by both parties.
Sales agreement detailing purchase price, conditions, and occupation date.
Compliance certificates for electrical, plumbing, and gas (if applicable).
4.
Settlement of Finances
The purchase price is usually paid via the conveyancing attorney.
The attorney handles:
Bond registration if the buyer is financing the property.
Bond cancellation for the seller if the property had an existing mortgage.
Deduction of transfer costs, agent commission, and rates clearance fees.
Note: The property transfer only proceeds once all funds are available and all debts against the property are cleared.
5.
Municipal Clearance
The conveyancer requests a Rates Clearance Certificate from the local municipality.
This certificate proves that all rates, taxes, and levies are paid up to the date of transfer.
The municipality may include final charges for water, electricity, or sewerage.
6.
Transfer Documents and Lodgement
The conveyancer drafts the transfer documents, including:
Transfer duty declaration
Power of attorney to register the transfer
Clearance certificates
These documents are lodged at the Deeds Office.
The Deeds Office checks the property’s title and ensures there are no disputes or encumbrances.
7.
Registration at the Deeds Office
Once approved, the Deeds Office registers the property in the buyer’s name.
The registration process can take 4–8 weeks, depending on workload and complexity.
The conveyancer receives the updated title deed and notifies both parties.
8.
Handover of Property
On the agreed occupation date, the buyer takes physical possession of the property.
Conduct a handover inspection to check for agreed repairs or conditions.
Keys, garage remotes, and any manuals or warranties are handed over.
9.
Costs Involved in Property Transfer
Transfer Costs (usually paid by the buyer):
Transfer fees: Paid to the conveyancing attorney for registration.
Deeds Office fees: Charged for recording the transfer.
Transfer duty: Government tax applicable on properties above R1.1 million (as of 2025).
Other Costs:
Bond registration fees (if the buyer is financing).
Bond cancellation fees (if the seller has an existing mortgage).
Rates and taxes clearance fees.
Estate agent commission if an agent was used.
Post-Transfer Considerations:
The buyer must update all utility accounts (water, electricity, and rates) in their name.
The seller should cancel any insurance or bonds linked to the property.
Keep copies of all documents, including the new title deed, for legal and tax purposes.