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If you’re a first time home buyer and new to the home buying process, you may not be familiar with the conveyancing process, which parties are involved and who pays the costs.

Conveyancing in sort is the legal term for the process whereby a person, company, trust or close corporation becomes the registered and legal owner of immovable property. It also covers the process of the registration of mortgage bonds.

Each time a property is sold, ownership must be transferred and a new deed of transfer must be drawn up and registered in the deeds office – this is where the Conveyancing Attorney is involved.

thinking-about-sellingWho appoints a Conveyancer and what does a Conveyancing Attorney do?

Once an offer to purchase or sale agreement has been signed by the buyer/s and seller/s, the seller appoints a Conveyancing Attorney to attend to the transfer transaction.

The earlier you speak to a Conveyancer, the better as they can help you look over the contracts and give you advice.

A good Conveyancer will explain clearly the importance of each process to help all the parties understand exactly what’s involved, the documents required in terms of the Financial Intelligence Centre Act (FICA), why certain documents are required and what documentation you are signing. Further to assist you to meet your legal obligations and protect your interests and rights.

There are usually three Conveyancing Attorneys involved in the process:

Transferring Attorneys:

The Transferring Attorney attends to the transfer of the property from the seller to the buyer and generally controls most of the conveyancing process.

Bond Cancellation Attorneys:

This Attorney is appointed by the sellers bond holder (Bank) to cancel the seller’s existing home loan registered over the property. The sellers bond must be cancelled simultaneously (or before) with the registration of the buyer’s new home loan.

Bond Registration Attorneys:

The Attorney is appointed by the buyer’s bank granting the home loan. They represent the bank granting the buyer’s home loan.

They register the bond over the property in favour of the bank.

The Conveyancing Attorney/s will explain each process in more detail once appointed.

So, who pays the conveyancing fees and what is it you are going to be paying for?

The Law Society of South Africa issues Conveyancing fee guidelines, but it must be noted that conveyancing fees are negotiable. These are merely guidelines and not minimum or maximum fees.

When purchasing a property, the buyer pays various fees. Transferring fees, which include and are not limited to conveyancing fees, deeds office registration fees and transfer duty, which the Conveyancer pays to SARS.

If a new bond is to be registered over the property, there are also bond attorney’s fees involved.

The seller on the other hand is responsible to pay rates and taxes, levies (if applicable), Home Owners levies (if applicable) and cost associated with the issue of an electrical clearance certificate (or other certificates as specified in the Offer to Purchase, for example gas compliance certificate, plumbing certificate, electrical fence certificate and a borehole certificate).

What is a Conveyancers duties and what can you expect from a Conveyancer?

The conveyancing process has become a very stressful process as the Conveyancer deals with various parties, banks, South African Revenue Services, various municipalities, rates agents, deeds offices and other role players on a daily basis. Much of the process, which they have to coordinate is actually out of their hands. The Conveyancer and their secretaries/staff take great care to attend to all aplications and tasks timeously to ensure there are no unnecessary delays. The conveyancer is probably the person who does the most of your property transaction and has to deal with all the parties involved and ensures collection and payment of all amounts due.

You can generally expect the following from your conveyancer in a typical transfer transaction:

  • The conveyancer informs all parties of the conveyancing procedure and keep the seller, buyer and estate agent informed of the progress of the transaction;
  • Advise the parties of the content of the offer to purchase, especially regarding any suspensive conditions, special conditions and time limits;
  • To advise the seller of the cancellation of his/her existing bond, request cancellation figures, any penalties, notice periods and other charges which may affect the settlement figure;
  • Request guarantees from the bank/bond attorneys in respect of the transaction;
  • Apply for the necessary rates and levy clearance certificates from the authorities;
  • Advise all parties of their obligations in terms of the offer to purchase, so as to ensure that the transfer is not delayed, also to do everything in his/her power to register the transaction on or as close as possible to the date agreed to in the offer to purchase;
  • Meet with the seller and buyer to explain the process and to sign the necessary documentation in order to conclude the transaction;
  • To prepare all deeds for lodgement;
  • To keep the seller, buyer and estate agent updated and advise of the transfer on the day of registration;
  • Account to the parties for finances relating to the transaction and to make all necessary payments.

Please note that this is a general explanation of the conveyancers’ duties. You can contact our offices for more information regarding the transfer process and any other conveyancing relates queries and we will gladly assist you.

By Nicola Mattheus

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