Halloween is behind us, mince pies are already on the shops’ shelves and you have probably heard your first Boney M Christmas song on the radio. If you want to finalise the registration of your property before the Deeds Office shuts down for the year, BetterBond Home Loans offers some practical tips that will help you beat the clock.
Beat the December deadline
Bradd Bendall, BetterBond’s National Head of Sales, explains that the cut-off dates for Deeds Office registration differ between regional offices and these offices usually stop accepting lodgements around early December. Offices usually close or operate with reduced staff from 21 December until early January. The dates of the Deeds Office cut-off change from year to year, so it’s best to check with your attorney for the final lodgement date.
Attorneys note that if your transfer file is submitted even a day after the deadline, the transaction will be on hold until mid-January when normal operations resume. According to the Deeds Office, the deed and associated documents will be available within 17 working days from date of lodgement if all the documents that have been submitted are in order.
“Work with an experienced conveyancer and plan ahead to reduce risk, manage unexpected expenses and ensure the transfer runs smoothly,” Bendall says, while recommending the following December checklist:
1. Sign the OTP early
If you have found your dream home, sign the Offer to Purchase (OTP) as soon as possible; ideally before the end of November. “The transfer process can take about two to three months, so this means that buyers looking to register a property before the December shutdown need to allow sufficient time for the bond application, transfer documentation and other legal requirements to be completed.”
2. Pre-approval
Apply for bond pre-approval as soon as possible. “It would be helpful if a buyer has already obtained pre-approval, as this process requires all the same documents and credit checks,” says Bendall. This includes supporting financial documents such as proof of income, bank statements and identification documents. “Also, buyers who pre-approve with BetterBond have a 95% bond approval success.” However, pre-approval is not a guarantee of final bond approval. The bank will still need to assess the property and complete its lending requirements.
Once you’ve been pre-approved, avoid taking on any additional debt until your home loan has been approved and registered. New credit or increased monthly repayments can affect your affordability assessment and potentially impact your home loan approval. Rather wait until you’ve secured your home before taking on any new financial commitments.
3. Sign your bond documents timeously
Once the bank has approved the bond, the bond registration attorney will prepare the bond documents for signature. “Sign these documents as soon as they are ready and ensure that any outstanding costs or deposits are paid promptly. Banks, attorneys and other parties may have reduced operating hours or internal processing deadlines during December, so leaving signatures or payments until the last minute could delay the transaction.”
4. Have funds ready
Bendall advises buyers to have all the funds they need for the transaction available. “This includes an emergency fund in case you need to pay occupational rent while waiting for the Deeds Office to transfer the bond.”
5. Tax status
Make sure your tax information is up to date, says Bendall. Transfer duty must be paid to the South African Revenue Service (SARS) before a property can be registered. “If there are outstanding tax returns or queries, it could delay the transfer. Check your tax status before signing the OTP.”
6. Compliance certificates
If you are in a race against time, ask the seller to complete their clearance certificates timeously. This includes rates, electrical, gas and any other compliance certificates. MP|W Attorneys cautions that municipal rates clearance certificates are generally valid for 60 days from date of issue. This means the certificate may expire before registration if transfer is delayed over the shut-down period.
7. Settlement confirmation
The seller’s cancellation figures and settlement process must also be completed before the transfer and bond can be lodged.
8. Watch bank cutoffs
Remember that banks also have processing deadlines in December. So sign bond documents as early as possible and ensure the deposit has been paid into the conveyancers’ trust account in time.
9. Occupation
Finalise your occupation dates. Although it is usually only possible to move into a new home once a transfer is signed, it could be possible to move in sooner if the home is vacant and the seller agrees, explains Bendall. “You will still have to pay occupational rent, but this could still be cheaper than staying in a guesthouse – especially during the festive season.”
10. Holiday cover
Finally, ask whether your attorney will monitor your file, respond to Deeds Office queries and handle any last-minute issues during the holiday period.
If you are unable to lodge a transfer before the December cut-off, be prepared to shift your registration and ownership to January or later, depending on the holiday backlog. “It’s important to remain in contact with your conveyancer, understand what is outstanding and establish a realistic registration date.”
Approaching end-of-year slowdown need not put the brakes on your homeownership dream, concludes Bendall. “With early preparation, realistic times and expert advice it is possible to end the year on a high note with your property transaction on track.”
