A signed offer to purchase feels like a major milestone, but anyone who works in property knows that the sale still has a long way to go before registration.
Once the transaction moves into conveyancing, several processes start running at the same time. Bond approval, bond cancellation, FICA compliance, transfer documents, guarantees, municipal rates clearance and, where relevant, levy clearance all have to come together.
Morné Prinsloo, local agent for REMAX Town and Country Roodepoort and Krugersdorp, says he cannot remove those legal requirements, and would never suggest bypassing them. What he does do instead is prepare clients properly and make sure avoidable delays are dealt with before they become serious.
"FICA is part of the transaction, not an administrative nuisance The Financial Intelligence Centre Act places obligations on accountable institutions to know who they are doing business with and to apply customer due diligence using a risk-based approach. The compliance framework includes customer due diligence, beneficial ownership checks, record keeping, sanctions screening and other duties applicable to accountable institutions.
"Property practitioners and legal professionals performing covered activities fall within this compliance framework. That is why buyers and sellers may be asked for more documentation than they expected. I warn clients early about documentation," says Prinsloo.
He says one of the easiest ways to lose days in a transfer is for the attorney to request FICA information and receive incomplete documents in return. "I tell clients from the beginning that they should expect to provide identification and supporting information and that the exact list will depend on the transaction, the parties involved and the accountable institution's risk assessment.
"An individual transaction can be relatively straightforward. A company, trust, deceased estate, non-resident party or transaction involving more complex ownership structures can require additional information," he says.
Source of funds can also matter
Prinsloo says Buyers are sometimes surprised when a conveyancer or other accountable institution asks where money is coming from. Under a risk-based customer due diligence framework, understanding the nature of a transaction and, where necessary, the source of funds can form part of the compliance process.
"If a large deposit is being paid from a third party, a company, an overseas account or another unusual source, the compliance questions may be more detailed. Again, I do not try to interpret the attorney's FICA obligations for them. I tell the client to give the requested information accurately and promptly. Arguing about why a document should not be necessary usually takes longer than resolving the requirement with the conveyancer," he explains.
Municipal rates clearance is a completely different process
FICA and rates clearance are often discussed together because both can delay transfer, but they are not the same thing.
Municipal clearance is linked to the legal requirements that must be met before transfer can be registered.
Using the City of Johannesburg as a practical example, the appointed conveyancing attorney applies to the municipality for the clearance figures. The City verifies the account and provides the amount that must be paid. Once the required process has been completed and payment dealt with, the clearance certificate can be issued for transfer purposes.
Where there are no problems or queries on the account, clearance figures may be produced relatively quickly. Account problems, billing disputes or unresolved queries can extend the process considerably.
This distinction is important. There is no responsible way for an agent to promise a seller that municipal clearance will always be issued within five days.
READ: What compliance certificates do I need when selling my home?
According to Antonie Goosen, principal and founder of Meridian Realty, these delays can quickly place an entire deal at risk if not managed proactively from the outset.
“A municipal clearance certificate is not just another administrative step, it is a legal requirement for transfer,” says Goosen. “If there is a delay, the entire transaction timeline is affected, and in some cases, it can lead to a deal collapsing.”
Goosen explains that the key to managing this risk lies in early preparation and constant follow up. “The biggest mistake is waiting until all conditions of sale are met before initiating the clearance process,” he says. “In practice, the process should begin as early as possible, often immediately after the offer to purchase is signed.”
The municipal account should be checked before the property is sold
Prinsloo says if there is a billing dispute, an incorrect meter reading, an unallocated payment, an old arrears query, an estimated account that has never been corrected or incorrect owner details, start addressing it as soon as you decide to sell.
A clean municipal account is not a guarantee that the transfer will be problem-free, but unresolved account issues are one of the easiest ways to create unnecessary delay later.
What agents should ask:
- Has FICA been completed for both parties?
- Has the rates application been submitted?
- Have the figures been received?
- Is there a municipal query?
- Has the seller paid the required amount?
- Has proof of payment been processed?
- Has the clearance certificate been issued?
- Are we actually waiting for rates clearance, or are we waiting for bond guarantees, bond cancellation figures or another document?
Once the outstanding item is identified, Prinsloo says he knows who needs to act.
Communication prevents unnecessary panic
Property transfers are stressful because buyers and sellers often do not know what is happening behind the scenes. A week of silence can feel like a major problem even when the attorneys are simply waiting for a normal process to finish. "I believe the estate agent should remain involved after the offer is signed. I do not interfere with legal work or tell attorneys how to do their jobs, but I do keep clients informed and make sure requests do not sit unanswered," explains Prinsloo.
- If the conveyancer needs a document from my seller, I follow up with the seller.
- If the buyer still owes a document to the bond originator, I try to help close that loop.
- If there is a municipal query, I want the seller to know exactly what the issue is rather than simply hearing, "Transfer is delayed."
Some delays genuinely cannot be controlled
- I cannot issue a FICA clearance on behalf of an attorney.
- I cannot make a municipality approve a rates clearance application.
- I cannot force the Deeds Office to register a matter on a date of my choosing.
There are parts of the transaction that sit outside the agent's control. The solution is not to make promises. It is to remove the delays we can control. Prepare documents early. Respond quickly. Check municipal accounts. Use experienced conveyancers. Track the exact outstanding item. Keep all parties informed. A property transfer will always involve legal and administrative processes, but good preparation can prevent many of the delays that are incorrectly accepted as "just part of selling a house." he says.
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