What does a seller need to do after accepting an offer on a house in South Africa

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Here's a detailed step-by-step breakdown of what a seller needs to do after accepting an offer on a house in South Africa, including what happens behind the scenes and how long each step might take:

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1. Sign the Offer to Purchase (OTP)

• What it is: A formal agreement between buyer and seller detailing the purchase price, conditions (e.g. subject to bond approval), and deadlines.
• Why it's important: Once both parties sign, the OTP becomes legally binding. Backing out can lead to legal consequences.
• Timing: Immediate, usually done with the estate agent present.

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2. Appoint a Conveyancing Attorney

• Who appoints them: In South Africa, the seller typically chooses the conveyancer.
• Role: The conveyancer prepares all documents, liaises with the bank (if there's a bond), municipality, SARS, and buyer’s attorney. They also ensure registration at the Deeds Office.
• What the seller needs to do: Provide identity docs, marital status details, and title deed (if available).

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3. Provide Documents and Authorizations

You’ll need to provide:

• ID book or card.
• Marriage certificate (or ANC contract, if applicable).
• Title deed (or your bank’s bond reference if still bonded).
• Municipal account details for clearance purposes.
• Authorization for bond cancellation (if applicable).

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4. Obtain and Pay for Compliance Certificates

You must supply various compliance certificates:

• Electrical Certificate of Compliance (CoC): Mandatory.
• Beetle Certificate: Required in some coastal areas, especially for freestanding homes.
• Plumbing Certificate: Required in cities like Cape Town.
• Gas Certificate: Needed if you have a gas installation.

Tip: Hire certified contractors to inspect and issue these. Costs vary.

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5. Settle Rates & Taxes in Advance

• The municipality requires upfront payment of rates, water, and electricity—usually 2 to 3 months’ worth, even if you’re selling.
• The conveyancer applies for a Rates Clearance Certificate.
• Timeframe: This step alone can take 10–30 days, depending on the municipality.

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6. Cancel the Existing Bond (If Any)

• Your conveyancer will notify your bank to cancel your home loan.
• Most banks require 90 days' notice to avoid early termination penalties.
• Once cancellation figures are issued, your bank will send the bond cancellation instructions to the bond cancellation attorney (appointed by the bank).

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7. Wait for the Buyer’s Bond Approval

• If the OTP is subject to the buyer obtaining a home loan, this must be finalized before transfer can proceed.
• The buyer’s bank appoints their own bond attorney, who works with your conveyancer.
• This can take anywhere from 7 to 30 days depending on how quickly the buyer acts.

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8. Sign Transfer Documents

• The conveyancer will call you in to sign the transfer documents, including:
  • Power of Attorney to transfer the property.
  • Declaration of marital status.
  • Transfer duty declarations (for SARS).
• If you're overseas or unavailable, you may need to sign in front of a notary or consulate.

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9. Transfer Duty & SARS Clearance

• The conveyancer submits documents to SARS to pay transfer duty (usually the buyer’s responsibility unless exempt).
• SARS must issue a Transfer Duty Receipt before the property can be registered.
• Timing: 7–14 working days on average.

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10. Lodgement in the Deeds Office

• Once all documents, certificates, and payments are in place, the conveyancer lodges the transfer with the Deeds Office.
• If there’s a bond: 3 sets of attorneys coordinate (bond attorney, bond cancellation attorney, and transferring attorney).
• Registration usually happens 7–10 working days after lodgement.

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11. Registration and Final Handover

• Once registered, the new buyer officially owns the property.
• The buyer receives the keys (typically via the estate agent), and:
  • The seller gets paid out (minus any outstanding bond or fees).
  • The buyer takes over the municipal accounts.

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12. Cancel Municipal Accounts & Utilities

• Notify your municipality, Eskom (if applicable), and service providers.
• Ensure final meter readings are done on or just before the registration day.

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