Glossary
ATTORNEYS INVOLVED:
Transfer Attorney: Transfers the property from the Seller to the Buyer Bond Attorney: Registers the new bond on behalf of the Buyer’s Bank Cancellation Attorney: Cancels the Seller’s existing Bond.
BOND:
When the buyers lend money from a bank or financial institution to purchase a property.
CANCELLATION FIGURE:
This is the settlement figure the Sellers still owes to his bank to cancel his bond.
COMPLIANCE CERTIFICATE:
The Sellers are required to obtain the following certificates, stating the that properties Electrical, Plumbing, Gas Beetle and Electrical Fence is in working order.
DEEDS REGISTRY:
The deeds Registry is responsible for the registration, recording and management of the property register in South Africa.
FICA COMPLIANCE:
The Financial Intelligence Centre Acts compels accountable institutions such as bank’s and attorneys to physically identify and verify the identities and existence of their clients as a preventative measure against Fraud.
GUARANTEES:
The Buyers Bank will issue guarantees to the Seller’s bank stating that on date of registration the outstanding amount will be paid via guarantees.
LODGEMENT:
When all the documents are ready and prepared, the transfer, bond cancellation and bond registration deeds are all lodged simultaneously at the Deeds Registry for examination and registration.
OCCUPATION DATE:
This is the agreed date on which the Seller will give vacant occupation to the Buyer. This may occur before, after or on date of registration.
RATES CLEARANCE FIGURES:
The outstanding amount of Rates, taxes and services owed on the property from the relevant Local Municipality.
RATES CLEARANCE CERTIFICATE:
Once the outstanding amount has been settled at the municipality, a clearance certificate will be issued.
SALES AGREEMENT:
Also known as an Offer to Purchase “OTP”, is the legally binding document signed by the Buyer and Seller, stating the conditions of sale for a property being purchased.
SUSPENSIVE CONDITIONS:
Any Condition specified in the Sale Agreement that must be met in order for the deal to be able to proceed, for instance the approval of a bond or sale of an existing property.
TITLE DEED:
The legal document which provides proof of registration and states ownership of a property.
TRANSFER DUTY:
Transfer duty is a tax payable by the buyer to SARS for the acquisition of a property. Below is the current rates charged by SARS.
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