All you need to know about the property transfer process

Article summary

• The transfer of property is an example of some of the admin that needs to be conducted on a home purchase.
• The seller appoints the transfer attorney, but the buyer will have to pay the transfer of property fee.
• The transfer attorney conducts most of the admin, such as collecting necessary documents and submitting them to the deeds office.

Transfer of property occurs after your home loan has been approved, and includes transfer fees paid to an attorney and transfer duty paid to SARS. The property is transferred from the seller to you; you pay a fee for it, and the deed is registered.

Yes, it is yet another step in the homebuying process, but don’t let additional admin like this put you off buying your dream home. Here, we simplify the property transfer process.

Note: You can determine how much the transfer of property will cost you using our Transfer Cost Calculator.

Property transfer process: 8 Steps to deed registration

1. The offer to purchase is signed by the buyer and seller.
2. The home loan is approved.
3. The seller appoints the transfer attorney.
4. The purchaser and seller sign the transfer documents.
5. The purchaser pays the transfer fee to the attorney.
6. The purchaser pays transfer duty to SARS.
7. The transferring attorney lodges all the relevant documents with the deeds office.
8. The deed is registered in the buyer’s name.

Step 1: The offer to purchase

• The offer to purchase is the contract between the seller and buyer that dictates the terms of the property sale. Once this is signed, the homebuying process can commence, and the buyer can apply for a home loan with the bank.

Step 2: The home loan is approved

• The bank assesses criteria such as the home buyer’s credit record and determines whether to grant the loan. Once they approve it, the transfer process begins.

Step 3: The seller appoints the transfer attorney

• The buyer may have to pay for the transfer of property, but thankfully they don’t have to concern themselves with the extra admin of appointing the attorney. This is the responsibility of the seller.

Step 4: Signing the documents

• Thankfully, much of the process is conducted by attorneys. They prepare the relevant documents, which are then signed by the seller and buyer.
• These include FICA documents and Power of Attorney

Step 5: The purchaser pays the transfer fee

• The transferring attorney charges a transfer fee which includes admin costs.
• The transfer fee is based on the value of the property (the higher the value, the higher the transfer cost).

You can use our Transfer Cost Calculator to determine what you will have to pay for transfer costs, including transfer duty (discussed below).

Step 6: The purchaser pays the transfer duty

• In addition to the transfer cost paid to the attorney, there is a tax paid to SARS, dependent on the value of the property.
• Properties worth less than R1 100 000 are exempt from transfer duty.

Step 7: The transferring attorney registers the documents

• The transferring attorney lodges all the required documents, together with the new bond and the old bond cancellation, with the Deeds Office.

Step 8: The deed is registered

• It takes 8 to 10 working days for these to be examined and, provided there are no changes, the transaction is registered. The purchaser is now the rightful owner of the property!

Save for additional costs by getting a better deal on your home loan

Transfer fees and transfer duty are some of the additional costs you have to pay on a home purchase, above and beyond the home loan repayments on the property itself.

You can secure a good deal on your home loan, with lower monthly repayments and interest rates; thereby reducing what you pay on the property as a whole once additional costs are taken into account.

Simply apply for your home loan with a home loan comparison service such as ooba Home Loans. We submit your application to multiple banks, allowing you to compare deals and choose the best one.

We also offer a range of tools that can make the homebuying process easier.  Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.