What is Conveyancing?
Conveyancing is the legal process whereby a person, company, close corporation or trust, becomes the registered and lawful owner of fixed property, ensuring that such ownership can not be challenged by a third party. It additionally encompasses the process of registering mortgage bonds.
What is a Conveyancer?
A conveyancer is an attorney who has also passed the National Conveyancing Examination and, by law, is the only legal practitioner who can register fixed property transfers at the >relevant Deeds Registry.
Conveyancers are also responsible for protecting the various interests of the parties involved in such transactions, as well as maintaining the high standard and credibility of land registration.
What are the costs involved?
Costs pertaining to the transfer of fixed properties fall into three categories, namely:
* Transfer Duty / VAT
When transfer duty is applicable, a standard formula (based on the value of the property) is used. In normal cases, transfer duty makes up the bulk of the costs and can sometimes equal 90% or more of the total cost of transfer. It is payable by the purchaser.
* Rates and Levies
Whilst not a transfer cost per se, the rates and levies applicable to the seller’s property, are required to be paid up in full on the date of transfer.
(A pro rata portion of the amount payable to the relevant local authority / municipality, or Body Corporate in the case of a sectional title unit, is required – usually up to the date of possession.)
The conveyancer’s fees are prescribed and and governed by a set tariff, which is then calculated on a sliding scale according to the purchase price. This, as well as the VAT on the final calculation, is normally payable by the purchaser.
Additional costs may include Deeds Office fees, postage and petties.
Bond Cancellation Costs (Applicable to the seller)
Any bond held by the seller over the property needs to be cancelled upon transfer. The cost of this cancellation fee, as well as the VAT thereon, is the sole responsibility of the seller and is payable to the bond cancellation attorneys.
The conveyancer may only proceed with the registration of the property transfer at the Deeds Office once all documents have been signed by both the purchaser, as well as the seller, and the transfer costs, transfer duty and rates and levies have been paid in full.
Bond Registration Costs (Applicable to the purchaser)
The conveyancer’s fee on this transaction is calculated on a sliding scale, based on the bond amount, and is payable (along with the VAT on this amount) by the purchaser to the bond registration attorneys.