What Steps Must The Buyer Complete After Property Registration?

The property transfer process in South Africa can be a lengthy and complex journey, but one of the most significant milestones occurs when the property is officially registered at the Deeds Office. This moment marks the point at which the ownership of the property legally transfers from the seller to the buyer. However, many people are unaware of the important steps that follow registration. 

1. Transfer of Ownership and Title Deed

After the registration at the Deeds Office, the buyer is officially the new legal owner of the property. The Title Deed – the most important document proving ownership – is updated to reflect the new owner’s details. While it may take some time before the buyer receives their original Title Deed, they should ensure that the Deeds Office has successfully recorded the transfer.

What is the Title Deed? The Title Deed is a legal document that records information about the property, including its location, description, and the new owner’s details. It serves as the legal proof of ownership. The buyer will receive a copy of the Title Deed, and in certain cases, it may be needed for future property dealings, such as selling the property or obtaining a loan.

It’s important to note that the Title Deed is crucial not just for proving ownership but also for establishing any conditions attached to the property. It can also be used to resolve any potential disputes or claims related to ownership.

2. Finalising Payment and Costs

Once the property transfer has been registered, the buyer is officially the new owner, but the financial aspects of the transaction don’t end there. The buyer must ensure all outstanding amounts are paid in full, including any transfer-related costs.

What costs are involved?

  • Transfer Duty: Transfer duty is a tax imposed by the South African government on the purchase of property. The buyer is responsible for paying this tax before the transfer is officially recorded. The amount of transfer duty is based on the purchase price of the property and is calculated according to a sliding scale.
  • Conveyancing Fees: The conveyancing attorney, who facilitated the property transfer, will have already outlined their fees. If there are any outstanding legal fees for the transfer process, the buyer will need to ensure these are settled.
  • Outstanding Rates or Levies: If the property is subject to municipal rates or homeowners’ association levies, these must be cleared before the transfer. The conveyancer ensures that the buyer receives a rates clearance certificate confirming that all property-related payments are up to date.

Once all costs are settled, the transfer will be complete, and the transaction will be fully closed. However, there may still be additional steps to finalize the buyer’s ownership, as discussed below.

3. Updating Utility Accounts and Services

Now that the buyer has officially taken ownership of the property, one of the most important next steps is to ensure that utility services are updated to reflect the new owner. This includes utilities such as electricity, water, and waste removal, as well as communication services like the internet and telephone.

The buyer should contact each service provider and update the details of the account to ensure that future utility bills are sent to them and not the previous owner. This process typically requires proof of ownership, which the buyer can provide by showing a copy of the Title Deed or a certificate of registration from the Deeds Office.

In some cases, there may be a final meter reading taken at the time of transfer to determine any outstanding utility charges for the previous owner. It’s also wise for the buyer to check the condition of all utility connections to avoid potential issues after moving in.

4. Municipal Registration and Payment of Rates

After the registration, the buyer will be liable for the municipal rates and taxes on the property. These are ongoing costs that are billed by the local municipality, so it’s essential for the buyer to notify the municipal office of the change in ownership. This is typically done through a notification form provided by the municipality.

The buyer must ensure that they continue to pay these rates and taxes in a timely manner, as any overdue payments could result in penalties or even the property being placed on auction to recover outstanding debts.

Some municipalities may also require the new owner to fill out additional documentation or provide further proof of ownership to transfer the liability for property rates into their name.

5. Updating the Homeowners’ Association or Body Corporate

For properties in gated communities or those that are part of a homeowners’ association (HOA) or a sectional title complex, the buyer must ensure that the HOA or body corporate is notified of the change in ownership. The buyer will then be registered as the new member of the association or body corporate and will become responsible for paying any levies associated with the property.

What are levies? Levies are the ongoing fees charged by the HOA or body corporate to cover the maintenance and management of communal areas, such as parks, pools, security, and shared facilities. These fees are separate from municipal rates and taxes and will typically need to be paid monthly or quarterly.

It’s essential to ensure that all documents are updated with the HOA or body corporate, as failing to notify them could lead to confusion regarding payment responsibility or potential fines.

6. Home Insurance and Security

Once the property is officially in the buyer’s name, it’s essential to arrange for appropriate home insurance. Homeowners’ insurance provides financial protection in the event of damage to the property, such as from fire, storms, or theft. The buyer should notify their insurance provider that the ownership of the property has transferred and update the policy to reflect the correct property details.

Security is another consideration. If the property is located in a high-security area or a complex with shared security services, the buyer should contact the security company or complex management to ensure that they have access to security services, such as gate access codes, alarm systems, and surveillance.

7. Tax Implications and Estate Planning

While it may seem like the process is over once the property is registered, the buyer should also be mindful of the tax implications of owning property. South African property owners are subject to annual taxes, such as property taxes and capital gains tax when selling the property in the future.

It’s also a good idea to consider how the property fits into the buyer’s estate planning. If the property is a significant asset, it may be wise to review or update a will or trust to ensure the property is passed on according to the buyer’s wishes.

8. Moving In and Enjoying Your Property

With all the paperwork, payments, and utilities taken care of, the buyer is now ready to move into their new home or take possession of the property. Whether it’s for residential or investment purposes, the buyer can now fully enjoy their new property, knowing that all legal and financial aspects are in order.

At Burger Huyser Attorneys, our experienced conveyancing attorneys are committed to providing professional guidance and support to help you navigate the complexities of property ownership. If you have any questions or require legal assistance regarding property transfers or ownership, contact us today for expert advice and assistance.

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358;  Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699; Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE