Our Services
Conveyancing Process
This is a simplified summary of the conveyancing process for a standard transfer of immovable property. There are normally three attorneys involved, namely the transfer attorney, bond cancellation attorney and the bond attorney. It can be a complicated process and we are aiming to break it down to assist in your understanding the process. This is written from the perspective of the transferring attorney. It does not extensively include the role of the Bond Attorney or Bond Cancellation Attorney which are the other attorneys involved in the process.
What is Conveyancing?
Conveyancing is a complex legal process involving multiple role players whereby the Purchaser obtains registered ownership of fixed property. The transfer process starts on the date the Offer to Purchase is accepted by the Seller and ends on the date of payment of finances and the delivery of the deeds to the relevant persons.
Who is a Conveyancer?
A Conveyancer is a specialised attorney admitted by the High Court of South Africa to practice as such. By law, only Conveyancers can attend to the transfer of immovable property.
Who appoints the conveyancer?
In the case of property transfers, it is the Seller’s provocative to appoint a Conveyancer. This, however, can be varied by agreement between the Seller and the Purchaser. It is not uncommon for the Seller to allow the Purchaser to nominate a Conveyancer. The Conveyancer is generally nominated in the Offer to Purchase.
An Offer to Purchase is signed between the Seller & Purchaser. The contract normally specifies whether the purchaser must pay a deposit/ purchase price to transferring attorney’s trust account/ whether the purchaser must obtain financing through a bond, in which case the bond originator will assist the Purchaser to obtain a bond.
If all the suspensive conditions are met and the bond approved if approved (where applicable), the matter will proceed.
If a bond is applicable and it has been granted, the Bond Attorneys receive instruction through their software package and contacts the purchaser with a list of the required information or documents they will need from them.
In this time, the Transferring attorneys requests the Seller & Purchaser’s FICA (not older than 3 months)
Transfer Attorney applies for the following:
• Bond cancellation figures
• Rates Clearance figures from municipality (the Seller will be asked to pay all the outstanding debts to the municipality as well as 2 month’s figures upfront to obtain the certificate required)
• Levy Clearance Figures from Body Corporate/ HOA managing agent (if in a estate or sectional title complex)- the figures are normally payable 1 to 2 months in advance. A admin fee is normally payable by the Seller to the managing agent for the figures and the certificate).
The Transfer Attorney will now send the bond attorneys their guarantee requirements once they receive the first letter from the bond attorneys requesting them to do so.
Transfer Attorneys & Bond Attorneys prepare Seller and Purchaser’s documents to sign. They will contact the Seller and Purchaser to arrange signature.
The purchaser must pay the transfer costs: this includes the attorney costs as well as the transfer duty. Please refer to the cost calculator to give the Purchaser an indication of the costs. Take note that this is only an indication.
If there is an exclusive use area, there will be additional charges payable to the Notary.
Seller to pay the following:
- rates and taxes clearance figures in advance (the rates clearance figures)- normally 2 months in advance plus all the outstanding amounts
- levies clearance figures in advance (the levy clearance figures plus admin charges).
- Bond cancellation attorney costs
The transferring attorney awaits the following after sending the various supporting documents and proof of payment to the relevant authorities:
- Transfer duty receipt from SARS
- Rates clearance certificate from the municipality
- Levy clearance certificate from the body corporate/ HOA
The bond attorneys must upload all the documents the bank require to obtain their proceed to lodge. Take note that if the bank requires building plans/ life insurance/ occupancy certificate- it can cause a delay to the transaction
After the Purchaser has signed with the bond attorneys. The bond attorneys must issue the transfer attorneys the guarantees to secure the purchase price. Remember the bond attorneys can only issue guarantees once the purchasers have signed at their offices. The purchasers must therefore not delay in going to sign at the bond attorneys.
Transferring attorneys issue the guarantees to the bond cancellation attorneys to secure the amount that is still owing on the Seller’s current bond and the bond cancellation attorney’s costs.
Transferring attorney obtain compliance certificate from Seller. Sometimes the bond attorneys will require this to obtain their proceed from the bank.
In this time it is also important for the agent to ensure that all the “other or special conditions” are complied with if an inspection is necessary.
Lodgement is arranged between the transfer, bond and bond cancellation attorneys and lodged simultaneously in the Deeds Office. Please refer to flow chart to see what happens once the matter is lodged at the Deeds Office. Your transfer attorney will keep you advised of the progress after lodgement.
Guarantees are paid out the day following registration and final accounts are sent to the Seller and Purchaser (- if applicable).
Please contact us should you require any assistance with the opening and closing of your account at the municipality or the obtaining of your refund (if applicable).
