So, you’ve finally reached that pivotal moment where you’ve decided to part ways with your beloved property and start a new chapter somewhere else. Now, you just want the sale to go through quickly and smoothly and receive the proceeds from the buyer. Unfortunately, it isn’t always as simple as that.
In South Africa, it typically takes around three months from the date of sale for property registration to be finalised in the new owner’s name, and your sale proceeds only become available once this transfer is successfully concluded.
What if you need the money urgently for purposes such as a deposit, overdue bills, moving, or personal debt?
Taurus Capital has a viable solution that can provide you with the financial agility you need during the intermission of the property transfer process.
Here, we’ll take a closer look at the common bottlenecks you can expect when selling your property and how Taurus Property Bridging can help you bridge the financial gap that these bottlenecks create.
What’s the Typical Property Transfer Process in South Africa?
Before you start packing boxes, you need to be aware that selling your property isn’t that straightforward, and if you don’t follow the right steps, there will be some significant delays.
Let’s quickly walk through the property transfer process:
- Offer to Purchase: The process begins when a buyer expresses interest in your property by submitting an Offer to Purchase. At this stage, you need to consult with a conveyancer for guidance on how to proceed correctly.
- Sign transfer documents: Once you’ve accepted the Offer to Purchase and you’re on the same page as the buyer, it’s time to put pen to paper. You and the buyer will sign various transfer documents, including the transfer duty receipt, the rates clearance certificate, and the title deed.
- Obtain relevant documents: The conveyancer will collect all the necessary documents required for the property transfer (the documents mentioned above).
- Obtain clearance certificates: At this point, there are fees to be paid. The buyer will cover transfer fees, including transfer duty, which is paid to SARS. As the seller, you’ll need to settle any outstanding municipal and levy-clearance fees. You’ll also want to ensure all compliance certificates, such as gas, electrical fence, and electrical compliance, are in order.
- Lodging in the Deeds Office: Once all the documents are sorted, your conveyancer will submit them to the Deeds Office for recording – a very important step in the process.
- Registration at the Deeds Office: The property transfer process concludes after a thorough review of the documents, which can take up to 10 working days. Once approved, a new title deed is issued, confirming the new owner’s details, and the remaining proceeds are paid to you. Remember, you’re responsible for choosing the conveyancer, and clearing any outstanding debts on your property before the transfer.
What Are Some of the Common Bottlenecks That Might Come Up?
The following factors can also impact the property sales process:
- Delays in the transfer process: Sometimes, paperwork or administrative issues can hold up the property transfer and delay your payment.
- Unforeseen expenses: You might need to get some repairs or staging done to make your property more attractive to buyers. Legal fees can also add up.
- Holding costs: While waiting for the property sale to finalise, you still need to cover ongoing expenses like utilities, property taxes, insurance, and maintenance.
- Market conditions: Property markets can be unpredictable. If market conditions change during the sales process, it may affect your property’s final sale price and your final payout.
- Buyer financing: If the buyer relies on a loan, delays in approval can mean you get paid later.
- Deeds Office hold-ups: The Deeds Office is a very important part of the process, but it can be prone to inefficiencies and cause further delays.
Expenses You Need to Cover When Selling Your Property
Many people often overlook the different costs tied to selling their property, such as:
- Compliance certificate fees: You’ll need to obtain compliance certificates for electrical, beetle, and gas installations, among others.
- Bond cancellation costs: If your property has an existing bond, you’ll need to cover the costs associated with bond cancellation when the sale goes through.
- Commission payable to the Estate Agent: If you use the services of a real estate agent (which you most likely will), you’ll need to pay their commission from the sale proceeds.
- Costs incurred for hiring a moving company: Physically moving all your belongings can be quite expensive, and these costs are typically borne by you.
- Capital Gains Tax: Depending on the profit you make from the sale, you may have capital gains tax obligations to fulfill.
The Only Solution You Need: Taurus Property Bridging
If you’re in a tight spot and urgently need cash flow for upfront costs during a transitional period in your real estate transaction, Taurus Capital can help. With our Taurus Property Bridging solution, you can receive a short-term advance of up to 80% on your sale proceeds while waiting for the conveyancing process to complete. Our financing is easy to arrange and quickly processed within just 24 hours.
At Taurus Capital, we understand how overwhelming it can be to deal with all the delays and upfront expenses that often come with selling your property. And as if that’s not enough, there’s all that confusing real estate jargon to decipher.
When you partner with us, you don’t have to worry about any of that. We connect you with a knowledgeable consultant who will patiently explain your options and answer all your burning questions. We get that this is a big decision, and we want you to feel sure about every step.
And just so you know, we’re 100% committed to your interests – no taking advantage of your circumstances here. You can trust us to support you and help you get through the property sale effortlessly – just as we’ve successfully done for over 1,000 property sellers we’ve assisted to date.
The Key Takeaway
It’s incredibly frustrating to have all your money tied up in a property you can’t fully utilise. Thankfully, Taurus Property Bridging can bridge that gap between your property sale and accessing your funds, so that you can enjoy peace of mind and financial stability during this transitional period.
If you have any further questions on our property bridging solution, you’re welcome to reach out to our capable team.
