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We trust this “A Beginner’s guide to the conveyancing process” article will assist in better understanding the key aspects. Conveyancing is the legal process of transferring ownership of immovable property from the registered owner to someone else. Although there may be different causes for a transfer of ownership, the typical transaction is a sale. The process begins with the conclusion of a written agreement of sale and is concluded when the transfer is registered in the Deeds office.
The Conveyancer is appointed by the parties to the agreement and is a specialist attorney who has qualified and been admitted as a Conveyancer. The Conveyancer is responsible for verifying the particulars of the parties and the property, preparing all of the necessary documentation accurately, guiding the parties along the way, securing the purchase price, liaising with all parties involved in the process and finally for effecting registration of the transfer in the Deeds Office.
Before the conveyancing process can commence, the parties must conclude a written agreement of sale which must clearly define each party’s rights and obligations.
It is vital that the agreement of sale is prepared by a professional and you should never sign an agreement without first understanding all of the clauses.
Agreements of sale often contain suspensive conditions which means that the sale is not conclusive until such time as a particular condition is met. For example, a sale may be subject to the Purchaser being granted a mortgage bond to fund a portion of the purchase price. If the bond is not granted timeously, the agreement will lapse and the Seller will have to find another Purchaser.
Always consult with your attorney before signing any agreement – to ensure your rights, obligations and legal compliance factors are in place.
When concluding an agreement of sale, the parties should nominate a conveyancer who will be responsible for the conveyancing process and enforcing the terms and conditions of the agreement of sale.
Although each party will always be entitled to independent advice on the transaction, the conveyancer will typically act for both parties in fulfilling his or her mandate.
Be sure to appoint a conveyancer who you know, who you can trust and who has the necessary experience to attend to the conveyancing as efficiently as possible.
Although it has become the norm that the Seller appoints the conveyancer, this is not an absolute rule and the purchaser is entitled to negotiate with the Seller as to who should be appointed.
Always ensure that the firm of attorneys nominated to attend to the work actually have a qualified and admitted conveyancer in their practice.
The Conveyancer, estate agent, the bank and any other attorneys involved in the process will be required to comply with the Financial Intelligence Centre Act (FICA) and as such you should ensure that you have all of the relevant FICA documentation (proof of identity, address and tax information) available.
If the property is being sold or purchased by a company or trust, you must ensure that you have all of the company/trust documentation and the individual FICA documentation for each shareholder/trustee.
As a Seller, you should gather all documentation relating to the property – latest municipal accounts, levy statements, bond statements, etc.
A Seller should also give written notice to the mortgagee (bondholder) to cancel the mortgage bond as soon as you contemplate selling the property. This will reduce or avoid any obligation you may have to pay penalty interest to the bank for early cancellation of the bond.
As a Purchaser, if you require finance in order to purchase the property, you should ensure that you have all of your financial documentation collated and ready to be submitted to a financial institution or mortgage originator.
Both parties should ensure that their tax affairs are in order.
Unless otherwise agreed, the Purchaser will be liable for the costs involved in the conveyancing process which will typically include the conveyancer’s fee (which is usually based on a recommended tariff), the Deeds office fee (which is based on the value of the transaction), transfer duty (if applicable – based on the value of the property if above R1.1 million (for the 2023 tax year)), additional fees for obtaining rates clearance, levy clearance, Deeds searches and postage and petties.
The Seller is usually liable for the payment of any estate agent’s commission, the bond cancellation costs as well as costs of obtaining any certificates of compliance (borer, electrical, electric fence and gas). The Seller will also be required to make payment of the local authority’s estimates of the property rates and utilities for a period of 3 months in advance.
It is always advisable to obtain an estimate of the anticipated costs from the conveyancer, before concluding the agreement of sale. Our costs calculator will give you a good estimate of the basic costs. Always contact us for a specific quotation based on the specific terms and conditions of the deal.
The duration of the conveyancing process will depend largely on the terms and conditions of the agreement of sale and then, certain processes which have to be followed in order to lodge the transaction in the Deeds office.
A fairly straight forward transaction will typically take 6 to 8 weeks from sale to registration.
The major factors which will affect the timing:
A Beginner’s guide to the conveyancing process is only a basic guide to follow. Always seek the advice of a specialist before committing to a sale or purchase of immovable property. Contact us if you have any further queries or questions.
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