Buyer and Seller Guide
The Commercial Transfer Process Explained
Commercial conveyancing runs the same three workstreams as residential (transfer, bond registration, bond cancellation), but with additional verification steps around zoning, environmental compliance and lease assignment. Twelve to twenty weeks from unconditional offer to registered ownership is typical.
Stage 1: Sale agreement becomes unconditional
Commercial sale agreements typically have multiple suspensive conditions: bond grant, due diligence, zoning verification, environmental clearance, and (where applicable) trustee or shareholder resolution. Each has its own clock. The sale becomes unconditional only when every suspensive condition is fulfilled or waived in writing.
Stage 2: Transfer attorney instructed
The seller appoints the transfer attorney (same convention as residential). The attorney requests title deeds from the seller's bond bank, FICA documents from buyer and seller entities, ownership-entity supporting documents (CIPC registration, trust deed, resolutions), and bond cancellation figures from the seller's bond bank.
Stage 3: Zoning and environmental verification
Commercial-specific. The conveyancer verifies the property's zoning under the Spatial Planning and Land Use Management Act 16 of 2013 and the relevant town-planning scheme. Any rezoning history is checked. Where the property has had industrial use, an environmental due-diligence may be required under the National Environmental Management Act 107 of 1998 to confirm no contamination liability.
Stage 4: Lease assignment
Where the property has existing tenants, their leases transfer (cede) to the new owner. The conveyancer prepares assignment documents for each lease. Tenants are notified in writing of the change of landlord and the new banking details for rental payments. Existing deposits transfer to the new owner.
Stage 5: Rates clearance and compliance certificates
Same principle as residential. Rates clearance from the municipality is required before transfer can register. The seller pays in advance covering rates up to a stated forward date. Electrical compliance certificate is mandatory; fire compliance and lift inspections may also apply depending on the building.
Stage 6: VAT or transfer duty
If VAT applies (seller is a VAT vendor), the seller pays output VAT to SARS and the buyer claims input VAT once registered. If transfer duty applies (seller is not a VAT vendor), the buyer pays SARS transfer duty through the attorney trust account. SARS issues the receipt the Deeds Office requires. See the Africa Estate VAT on commercial property guide.
Stage 7: Deeds Office lodgement and registration
All three attorneys (transfer, bond registration, bond cancellation) lodge their packs at the Deeds Office on the same day under the Deeds Registries Act 47 of 1937. The examiners clear each pack independently, typically over two to four weeks. Registration is the legal moment ownership transfers, existing leases cede to the new owner, and bonds are registered or cancelled.
Buying or selling commercial property?
Africa Estate routes commercial transactions through conveyancers experienced in zoning, environmental and lease-assignment complexity. Contact us before the OTP is signed.