Conveyancing

When it comes to the transfer of immovable property, costs are typically categorized into two main components:

1. Professional Fees: The conveyancer’s professional fees adhere to the guidelines set by the Law Society of South Africa, incorporating a sliding scale based on the property’s purchase price. These fees are the responsibility of the purchaser.

2. Disbursements: Disbursements encompass various expenses incurred by the conveyancer on behalf of the parties involved. These may include transfer duty or Value Added Tax (VAT), along with pro-rata rates and/or levies payable to the relevant local authority and/or body corporate. The determination of transfer duty aligns with figures issued by the South African Revenue Service (SARS).

Before the registration or transfer takes place, the conveyancer collects the following funds from the respective parties:

From the Seller:

• Outstanding amounts in rates, taxes, and/or levies due to the local authority/municipality and/or Body Corporate.
• Bond cancellation costs.

From the Purchaser:

• Pro-rata provision for rates and taxes and/or levies due to the local authority/municipality and/or Body Corporate.
• Deeds Office registration fees.
• Professional (conveyancing) fees.
• Transfer duty and/or VAT.

This transparent breakdown ensures clarity regarding the financial aspects associated with property transfer, enabling a smooth and well-informed transaction for all parties involved.

The duration for completing the property transfer process, particularly when a bond is part of the equation, typically averages between two to three months from the initiation of the conveyancer’s instructions.

The timeline to bring the transaction to the Deeds Office hinges on the responsiveness of each party involved in the process. The Deeds Office, responsible for scrutinizing all documents submitted by various conveyancers for a specific transaction, typically takes ten working days to conduct their inspection.

The efficiency of the property transfer timeline is contingent on the collaborative effort and timely responses from all parties engaged in the process. As such, proactively participating in the necessary steps and communications can contribute to a smoother and more expeditious transfer of property ownership.

The property transfer process involves a chain of transactions with several key parties, each playing a crucial role in ensuring a smooth transition of ownership:

1. The Seller (and Spouse): The current property owner initiating the sale.

2. The Purchaser (and Spouse): The individual or entity acquiring the property.

3. Institution with the Previous Bond (and Bond Cancellation Attorney): The entity that provided the initial bond to the seller, along with the conveyancer representing its interests in the bond cancellation process.

4. Receiver of Revenue: The government entity responsible for collecting taxes, particularly transfer duties in this context.

5. Municipality or Local Authority: The local governing body overseeing property-related taxes and levies.

6. Institution Providing the New Bond (and Bond Registration Attorney): The entity extending the new bond to the purchaser, represented by a conveyancer in the bond registration process.

7. Estate Agent: Facilitates the property sale, acting as an intermediary between the buyer and seller.

8. Conveyancer(s): Legal professionals overseeing the entire transfer process and coordinating with various parties.

9. Registrar of Deeds: Government official responsible for registering property transactions.

10. Buyer of the Purchaser’s Previous Property: If applicable, the individual or entity purchasing the property the buyer had to sell to obtain the necessary funds.

11. Conveyancer for the Buyer in the Previous Transaction: Legal representative handling the buyer’s side in the transaction mentioned above.

12. Institutions Providing Loans in Previous Transactions (and Their Conveyancers): Entities involved in providing loans in previous transactions, each represented by their respective conveyancers.

Given the complexity of these interactions, the conveyancer must coordinate with all parties involved, making it possible for delays to occur at any stage. It is imperative for the purchaser to promptly sign documents and fulfill financial obligations when called upon by the conveyancer, minimizing the risk of unnecessary delays in the property transfer process. Proactive cooperation from all parties is essential for a timely and successful transaction.

The transfer of fixed property involves substantial stakes, often representing the most significant asset in an individual’s possession. The purchase or sale of real estate is a critical transaction, and as such, the law mandates that only qualified conveyancers oversee such transfers and related transactions. This legal requirement serves not only to safeguard the rights and interests of the public but also to uphold the integrity of the South African land registration system, renowned globally for its excellence.

A conveyancer’s role is pivotal in ensuring that the transfer process adheres to legal standards and procedural intricacies. This meticulous oversight is crucial for providing proper protection to all parties involved. Once the conveyancer completes all necessary checks and follows the prescribed procedures, culminating in the registration of the property in the purchaser’s name, the purchaser can rest assured that they hold the most secure title to the property. In essence, the conveyancer plays an indispensable role in facilitating a smooth and legally sound property transfer, offering peace of mind to all stakeholders in this significant transaction.