The transfer of immovable property is referred to as conveyancing and entails the transfer of ownership of property from the registered owner/s to the purchaser/s. The typical process of transferring a property takes about three months, with any number of factors affecting this timeline. To allow the process to run as smoothly as possible, it is important to attend the meetings arranged by our office and to provide the requested documentation.
The transfer of immovable property is registered in the Deeds Office.
It is important to understand your rights, responsibilities and the costs involved with different types of property transfers.
Rights and Responsibilities of Buyers and Sellers
An agreement for the purchase of immovable property must be in writing in terms of the Alienation of Land Act 68 of 1981 (hereinafter referred to as “the Act”). Should the agreement be an installment sale agreement, the agreement must comply with the requirements set out in Chapter 2 of the Act.
The agreement of sale between the buyer and the seller creates reciprocal rights and responsibilities, such as the purchaser’s right to receive transfer of the house or land purchased and the seller’s duty to transfer the land. Likewise, the seller has the right to receive payment of the purchase price as agreed in the contract and the purchaser has a duty to make payment as provided for in terms of the contract.
Different types of property transfers
Every property transfer must have an underlying cause. A cause can be in the form of an agreement of sale or installment sale agreement, as set out above, being the most common underlying cause for the transfer of property, or can exist in the following circumstances:
Deceased estate
This type of transfer occurs upon the death of an owner of immovable property and the passing of ownership will occur in accordance with his/her last will and testament, alternatively, in terms of the laws of intestate succession, should the deceased not have left a valid will.
Gifting of property (Donation)
A donation is any gratuitous disposal of property, including any gratuitous waiver or renunciation of a right. If the person (donee) receiving the donation gives anything in return, it is not a donation. In this form of transaction, a deed of donation must be entered into between the doner and the donee and the parties will have to pay donations tax as determined by SARS.
The person making the donation (donor) is liable to pay the donations tax, however if the donor fails to pay the tax within the payment period, the donor and donee are jointly and severally liable for the donation tax. Donation tax must be paid by the end of the month following the month during which the donation takes effect or such longer period as SARS may allow.
Besides these examples, there are other instances which may also provide a cause for immovable property to be transferred, such as expropriation of land, exchange of properties, subdivision of land, a divorce order etc.
Costs Involved
The typical costs involved with property transfers for the seller/s are the cost of estate agent commission, if any, and the cost of obtaining the necessary compliance certificates, such as plumbing compliance, electrical compliance and wood borer certificates (referred to as a beetle compliance certificate).
The purchaser will be responsible for the conveyancing fees, which fees are determined by the purchase price of the property or the value of the property, whichever amount is higher. The purchaser will also have transfer duty costs, if applicable, which are payable to SARS through the conveyancing attorneys. Transfer duty costs are determined by SARS based on the highest market value of the property.
The conveyancing process might seem like a daunting and complicated process, but rest assured that our team of professionals will make every effort to ensure that the process is as smooth as possible.
Should you require assistance with the transfer of your property, please contact our nearest branch and we will gladly assist you.