Deeds Office processing speeded up by lower throughput
- 24 Oct 2008
One of the major problems in the Cape property sector has been solved by the drastic slow down in house sales: the Deeds Office is now no longer over-burdened and has caught up on the transfer of properties and the registration of bonds.
At the height of 2006/2007 boom, Bill Rawson, CEO of Rawson Properties, says it often took three months or longer to finalise a transfer, with the possibility of further delays if there were any mistakes in the documentation.
Today, said Rawson, an efficient conveyancer is usually able to transfer and tie up all the legalities on a property within six weeks, the Deeds Office paper work being completed within ten days.
This rapid improvement, said Rawson, has caused difficulties for a few buyers, particularly those planning to use the proceeds of a previous sale for the new purchase. Some have had to pay for their new property well before receiving the money from their previous home and this has involved funding expensive bridging finance.
Rawson pointed out, however, that it is perfectly acceptable to include a clause in the sales document stipulating that the payment is contingent on the full payout from the first property being received. Buyers should insist that such a clause is written into their documents if there is any doubt as to when a sale will go through.