Do you wonder how long a property transfer takes in South Africa? Find out the answer and how to achieve property ownership!

If you are looking into acquiring a property, you have probably asked yourself how long does a property transfer take South Africa? Well, we have the answers to help you with this process of transferring ownership.

So, let’s talk about what it is, how long it takes, how it affects you, and what are the steps involved. Also, if you want to check out more financial tips on our website, you can click on this link!

What Is a Property Transfer?

In simpler terms, it is the legal process of changing ownership of a real estate asset from the seller (transferor) to the buyer (transferee). This official handover involves various administrative tasks and legal checks to ensure a smooth and secure transition.

How Does a Property Transfer Happen?

1. Application and Approval of New Bond:
   • Upon signing the purchase offer, the buyer initiates the process by applying for a bank-approved bond;
   • A bond attorney is engaged to prepare the necessary paperwork, with fees borne by the buyer.
2. Cancellation of Existing Bond:
   • The seller appoints a transferring attorney;
   • The transferring attorney requests cancellation figures from the bank regarding the existing bond;
   • The seller settles any outstanding amounts on the bond;
   • The bank sends the original title deed to the bond-cancellation attorneys.
3. Municipal Clearance:
   • Both parties sign the transfer documents;
   • The property’s rates and taxes are assessed, and any outstanding payments are made by the seller;
   • The municipality issues a municipal clearance certificate.
4. Payment of Transfer Duty:
   • The transferring attorney handles the payment of transfer duty to the South African Revenue Service (SARS) on behalf of the buyer;
   • SARS issues a transfer duty receipt.
5. Lodgment of Documents at Deeds Office:
   • All relevant documents, including bond approval and cancellation papers, clearance certificates, and receipts, are lodged with the Deeds Office;
   • Upon verification of compliance, the property is officially registered in the new owner’s name.

How Does It Affect Me?

It affects both buyers and sellers. For sellers, a quicker transfer means faster access to sale proceeds, while buyers can take possession sooner and start enjoying their new property. Delays can lead to extra costs and have an impact on the plans for the property. It can also affect market liquidity and confidence in the real estate sector.

How Long Does a Property Transfer Take in South Africa?

Generally, expect the property transfer process to take anywhere from 3 months, when there are no hold-ups or delays, up to 6 months. The timeframe for it, in South Africa, can vary depending on several factors, including:

• Efficiency Of The Parties Involved: a proactive seller with readily available documents and a responsive attorney can expedite the process;
• Complexity Of The Transaction: cash purchases generally proceed faster than those involving bonds;
• Workload At The Deeds Office: deeds offices in major cities may experience higher backlogs, potentially impacting processing times.

Here’s the estimated turnaround time for each one of the stages previously mentioned:

• Application and Approval of New Bond: up to 4 weeks;
• Cancellation of Existing Bond: could take more time than the mandatory 90-day bond cancellation notice period;
• Municipal Clearance: 15 working days;
• Payment of Transfer Duty: 20 working days;
• Lodgment of Documents at Deeds Office: 8 to 10 days.

Common Causes Of Delays In The Process

Selling a property can involve additional steps, such as waiting for the buyer’s current home to sell. In South Africa, properties typically stay on the market for an average of 67 days. For sectional title units (apartments or townhouses), obtaining a levy clearance certificate from the building’s management can take up to 20 business days. There are other common causes of delays in the process, such as:

• A missing title deed for the property (obtaining a new one from the Deeds Office can take several weeks);
• An incomplete or inaccurate Deed of Sale (which could be the fault of the seller, buyer or real estate agent);
• Delays in the seller signing bond and transfer documents or in providing necessary FICA documents to the attorneys;
• Cash flow issues on the part of the buyer, who may underestimate costs associated with the property transfer;
• Cash flow issues on the part of the seller, who may need to repay an outstanding bond and cover costs associated with buying and/or moving to a new property;
• The need to cancel an existing bond – a process that takes at least three months.