Parties involved in the sale or purchase of a property:

  • Seller  - the party appointing the conceyancing attorney
  • Estate Agent  (if applicable)
  • Purchaser
  • Transferring (Conceyancing) Attorney (appointed by the seller to transfer the property into the buyer's name)  
  • Bond Attorney (appointed by the bank granting the bond to register the bond – this bond will be registered simultaneously with the registration of the transfer and the cancellation of the seller’s bond)  
  • Cancellation Attorney (appointed by the bank to cancel the existing bond over the property, should the seller still owe money to the lender/bank) 

The same attorney could be appointed to handle more than one or even all of the above transactions, but this is hardly ever the case.  In any event, all the involved attorneys should collaborate to lodge the documents and later on appear in the Deeds Office on the same day, for it is a requirement that all the transactions should take place simultaneously.  This requirement is where property transfers can go horribly wrong and this is why you need a good transferring attorney that is able to efficiently manage the transaction and keep everything on track till the very end.

Starting the transfer process

To start the transferring process, the conveyance will require the:
  • Purchaser's & Seller's details together with copies of their Identity documents
  • Marriage certificates
  • Ante-nuptial contracts or divorce orders.

After receiving these documents & the original Title Deed, the Conveyancer will prepare the transfer documents & his proforma account. The Parties will then be required (e.g. contractually obliged) to sign the documents and the Purchaser will be required to pay the Conveyancer's costs. These costs will include:
  • The Conveyancer's fees:  Charged in accordance with a tariff issued by the Law Society. Our practice is affiliated with the Law Society of the Northern Provinces.
  • Transfer Duty:  A tax payable to the South African Revenue Services on all transfers of immovable property, calculated as a percentage of the purchase price. No transfer can be registered until the Deeds Office is satisfied that the transfer duty has been paid.

These are the Transfer Duty rates applied to properties acquired on or after 1 March 2015, and apply to all persons (including Companies, Close Corporations and Trusts):
Value of property (Rand)
Rate
0 - 750 000
0%
750 001 - 1 250 000
3% on the value above 750 000
1 250 001 - 1 750 000
15 000 + 6% of the value above 1 250 000
1 750 001 - 2 250 000
45 000 + 8% of the amount above 1 750 000
2 250 001 and above
85 000 + 11% of the amount above 2 250 000
There are certain exemptions to paying transfer duty, kindly consult with us in this regard.
 
  • Rates: The purchaser will be liable for rates only after the date of registration of the property in his name. Approximately 3 months' payment in advance will be required by the Seller to enable the conveyance to obtain a rates clearance certificate from the rates department (local municipality) – the seller pays the costs pertaining hereto. No transfer can be registered until the Deeds Office has proof that the rates have been paid. Should the property be a sectional title unit, then a levy clearance certificate must be obtained.

Requirements for registration:

The transfer, bond & cancellation documents must be lodged in the Deeds Office at the same time to ensure registration. If different conveyancers are working towards the registration of the Purchaser's bond, the cancellation of the Seller's bond and/or the transfer of the property, then all these conveyancers must collaborate. From date of lodgement with the Deeds Office, it usually takes 7 days until date of registration. The parties are notified on the day of registration and the Seller should be paid out on the following day, so that he does not lose interest on his capital. The parties are furnished with final accounts reflecting the final adjustments between the parties in respect of rates, levies, occupational rent and other matters.

A good conveyancing attorney should:

  • Provide regular feedback to all parties involved, regarding progress
  • Resolve issues that may arise
  • Return messages or correspondence promptly
Choose carefully as this attorney can save a sale if they have the necessary skill to resolve problems – contact us.

General Remarks regarding property transfers

  • It is common practice that the seller appoints the conveyancing attorney, except where the seller permits that the buyer’s attorney be used.  In any event, a reliable attorney should be used – someone who will act in the seller’s interests should problems/delays arise (because sometimes they do) as it is the seller who instructs the attorney to give transfer, not the buyer.
  • ​ If a bond is used to pay for the property, the bank will appoint their own attorney to act on behalf of the bank (regarding the bond).  “Panel Attorneys” are used for this purpose.