Property Transfer
Property transfer is the legal process through which ownership of immovable property is transferred from one party to another and officially recorded in the Deeds Registry. Only an admitted conveyancer may prepare and lodge the required documents, and no transfer takes effect until the Deeds Office completes registration.
The process ensures that the buyer receives valid title, that the seller’s ownership is correctly terminated, and that all statutory requirements linked to the transaction have been met.
What is Property Transfer?
Property transfer in South Africa is governed by the Deeds Registries Act, municipal clearance requirements, SARS regulations, and the terms of the sale agreement. Each component must align before the Deeds Office will proceed with registration. Conveyancers manage this alignment by drafting the transfer documents, verifying the seller’s title, coordinating payments, and confirming compliance with the legal and financial conditions of the transaction.
How Property Transfer Works
Every property transfer follows a structured sequence that begins with the sale agreement and ends with the registration of ownership. The conveyancer’s role is to ensure that the transaction complies with statutory requirements and that all supporting documents and certificates are obtained before lodgement.
The process starts once a valid sale agreement is signed. The conveyancer then examines the existing title deed to confirm ownership and identify any conditions, restrictions, or bonds registered against the property. Suspensive conditions in the sale agreement—such as obtaining loan approval—must be fulfilled before the transfer can progress. Throughout this period, the conveyancer prepares transfer documents, obtains municipal and sectional title clearances where necessary, and ensures that SARS requirements for transfer duty are met.
The transfer is lodged at the Deeds Office once all documents, payments, and compliance items are in order. Deeds examiners review each document to confirm its validity. Once passed, the transfer is registered, and ownership lawfully changes hands.
Stages in the Transfer Process
Although each transaction has its own details, most property transfers follow the same core stages:
1. The Sale Agreement
The transaction begins with a signed sale agreement that sets out the terms of the transfer, including the purchase price, conditions, timelines, and obligations of each party. This agreement forms the legal foundation for the transfer and determines the steps that follow.
2. Appointment of the Conveyancer
A conveyancer is appointed to prepare and manage the transfer. The seller usually appoints the transferring attorney, but the buyer pays the associated fees. The conveyancer’s responsibilities include preparing the transfer documents, verifying the title, coordinating with banks regarding bond cancellations or new bond registrations, and ensuring statutory compliance.
3. Title Verification
The conveyancer conducts a title search at the Deeds Office to confirm ownership and identify any conditions, servitudes, or bonds that affect the property. Any obstacles—such as an outdated restriction or unresolved debt—must be addressed before the transfer can proceed.
4. Clearance Requirements
Before a transfer can be lodged, the conveyancer must obtain the certificates required to confirm that all financial obligations linked to the property are settled. These certificates allow the Deeds Office to proceed with registration without inheriting outstanding liabilities.
For conventional properties, the municipality issues a rates clearance certificate confirming that rates, taxes, and service charges have been paid for the prescribed period. For sectional title and homeowners’ association properties, a levy clearance certificate is obtained from the managing body to certify that levies and related charges are up to date. These certificates are mandatory: the Deeds Office will not allow lodgement without them.
Where legislation or the sale agreement requires additional compliance documentation—such as electrical, gas, or water installation certificates—these must also be provided before the transfer proceeds. The seller typically arranges these items, but the parties may agree otherwise.
5. Transfer Costs and Related Charges
The buyer is responsible for the costs associated with transferring ownership. These include the conveyancer’s fee, Deeds Office charges, statutory disbursements, and transfer duty payable to SARS. Each item must be settled before the transfer is lodged, as the Deeds Office will not accept incomplete transactions.
If the buyer finances the purchase through a mortgage bond, additional fees arise for the bond registration. These are separate from the transfer costs and are handled by the bond attorney. The timing of bond approval influences the overall transfer timeline, as the transfer and bond must often be lodged together.
The conveyancer provides a cost estimate early in the process so the buyer can prepare for the full financial outlay. Because transfer costs vary depending on property value, location, and legislative requirements, accurate planning helps prevent delays at the stage of lodgement.
6. Bond Registration (Where Applicable)
When a buyer secures financing through a home loan, a bond must be registered in favour of the bank. This process is conducted by a bond attorney and often runs concurrently with the property transfer. The bond attorney prepares the bond documents, verifies the loan conditions, and aligns the registration with the transferring conveyancer to ensure both instruments are lodged together.
The Deeds Office examines the transfer and bond simultaneously. Registration occurs only when both sets of documents comply with statutory requirements. This coordination ensures that the bank’s security is established at the same time ownership is transferred to the buyer.
7. Lodgement and Registration at the Deeds Office
Once all documents, certificates, and financial requirements have been met, the conveyancer lodges the transfer documents at the Deeds Office. Deeds examiners review each document for formal and substantive compliance. If corrections are required, the documents are returned for amendment before re-lodgement.
When the Deeds Office approves the documents, registration takes place, and the transfer is finalised. Ownership passes to the buyer by operation of law at the moment of registration. The conveyancer then informs all parties, arranges the release of funds, and closes the transaction.
Types of Property Transfers
Property ownership can change hands in several legally recognised ways, each with its own requirements and supporting documentation. While many transfers arise from an ordinary sale, others occur through operation of law, court orders, family arrangements, or succession. The conveyancer’s role is to ensure that the correct legal process is followed for the specific type of transfer.
- Transfers Arising from a Sale: This is the most common form of transfer and occurs when a buyer acquires property through a private sale or auction. The conveyancer works from the signed sale agreement to prepare and lodge the transfer.
- Transfers in Deceased Estates: When a property owner dies, the executor transfers the property to heirs or legatees in accordance with the will or, if there is no valid will, the laws of intestate succession. The Master’s authorisation and estate documentation are essential.
- Transfers Following Divorce: A divorce order may require property to be transferred between spouses. The conveyancer works from the court order or settlement agreement to implement the required transfer.
- Transfers by Donation: A donor may transfer property to a donee as a gift. A written donation agreement and compliance with tax requirements are necessary before lodgement.
- Transfers by Prescription: Where a person has possessed property openly and continuously for an extended period under the conditions recognised by law, a court may order that ownership be transferred. The conveyancer acts on the court order to register the change.
- Transfers Involving Insolvent Estates: When a person is declared insolvent, ownership of their property vests in the trustee. Certain transfers follow as a consequence of administering or rehabilitating the estate.
- Transfers Arising from Error or Rectification: If a property has been incorrectly registered, the Deeds Registry may correct the record through a transfer based on evidence of the mistake and supporting documentation.
- Transfers Involving Expropriation or Statutory Succession: In specific circumstances, property may be transferred to the state or a successor entity under authorising legislation. These transfers are effected on the strength of the statutory instrument rather than a private agreement.
The type of transfer determines the supporting documents required, who may sign on behalf of the parties, and the regulatory steps the conveyancer must follow.
VDM Attorneys – Property Transfer Attorneys
VDM Attorneys assists clients with all forms of property transfers, including conventional sales, estate transfers, court-ordered transfers, and transactions involving statutory or administrative requirements. We prepare and lodge the necessary documents, coordinate compliance with the Deeds Office and relevant authorities, and guide parties through each stage of the process to ensure that ownership passes lawfully and without unnecessary delay.