Delays in property transfers are not only frustrating but can also be costly, potentially jeopardising the entire deal. Fortunately, while some delays are unavoidable, many can be mitigated with proper planning and awareness.

Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, explains: “There are two primary types of delays: those related to the confirmation of the sale and those that occur after the sale has been confirmed. By doing your homework and preparing properly from the start, many of these can be avoided.”

Odendaal highlights that property transactions are notoriously protracted, involving multiple steps and extensive documentation. Even once all contractual obligations have been met and the deal is signed, the transfer process itself can still encounter obstacles.

Common Causes of Transfer Delays

“One common reason for delays,” Odendaal says, “is when timelines become misaligned, especially if multiple property deals are interconnected. If funds from one sale are needed to purchase another property, the entire chain can be disrupted.”

Budgeting issues also frequently cause delays. For example, if buyers fail to budget for transfer costs or don’t have an access bond in place on their current home, problems can arise. When the attorney calls for bond cancellation, that bond account will be frozen, preventing access to funds.

Additionally, failing to give the required 90 days’ notice to cancel an existing bond can lead to unnecessary delays and incur late cancellation fees. Odendaal advises, “If you’re considering selling your home, notify your bank of the possibility. This doesn’t commit you to selling, but it ensures smoother processing if you decide to move forward.”

Role of the Transferring Attorney

A transferring attorney plays a crucial role in coordinating the process, working with entities like SARS (for transfer duty), the municipality (for a Rates Clearance Certificate), and the bank. To ensure seamless coordination, both buyers and sellers must submit all necessary documentation promptly and in full.

“This is especially crucial if either party lives abroad or is difficult to reach for signatures or information,” Odendaal emphasises. In such cases, giving power of attorney to someone in South Africa can expedite the process.

Key Stages Where Delays Often Occur

Odendaal outlines the most common stages where delays happen:

1. Bond Approval
2. Bond Cancellation
3. Signing of Transfer Documents
4. Obtaining Valid Compliance Certificates
5. Registrar of Deeds Lodgement Issues: Notes needing removal by the Registrar can slow down proceedings.
6. Complex Transfers: Situations like estate transfers, requiring endorsements from the Master of the High Court, can be particularly time-consuming.

Tips to Avoid Transfer Delays

• Cooperate Promptly with the Transferring Attorney: Respond to requests for documents and signatures without delay.
• Use Power of Attorney: If you’re outside South Africa, appoint someone local to sign on your behalf.
• Be Honest About Your Financial Situation: Inform your agent of any financial constraints upfront.
• Get Prequalified: A bond originator like ooba can prequalify you, revealing potential credit issues early and allowing time for resolution.
• Self-Employed Buyers: Prepare documentation meticulously, as banks have stringent requirements. Avoid large purchases that could affect your affordability during the process.

Odendaal advises that experienced estate agents can guide clients through the process, provided clients are transparent about their circumstances. “Appointing a skilled conveyancing attorney is also essential,” he says. “It helps if the attorney and agent have a solid working relationship, as they coordinate closely behind the scenes to ensure a smooth transfer.”

Total Words: 653

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Avoid Property Transfer Delays!
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