Investors can only start enjoying the income once the properties are owned and in the name of the company. The property must be registered in the deeds office and this can take a while.
How does the registration process work?
The property needs to move from the name of the Seller into the name of the Buyer.
A Transfer Attorney prepares all the documents needed for registering the property transfer. Once ready, the municipality provides the Transfer Attorney with a rates clearance certificate and SARS issues a transfer duty receipt.
Once all the documents have been signed and all the costs have been paid, this documentation (Deed of Transfer, Buyer’s bond information and transfer duty receipt from the Receiver of Revenue) all gets lodged at the Deeds Office by the relevant Attorneys.
The Deeds Office will take 2 – 3 weeks to verify all submitted documents depending on the various circumstances and then the final step of bond registration will take place. The property is now in the buyer’s name.