For many years, property conveyancing in South Africa has been regarded as one of the most sophisticated fields of the law. However, with property being the most expensive asset many people will ever own, this process can become complex when the parties involved do not consider all the necessary procedures and costs involved in the tranfer process.

The transfer of property (conveyancing) decribes all the administrative and legal procedures necessary to transfer ownership (and other real rights) in immovable property from one person to another.

The Role of a Property Conveyancer

A conveyancer is a practicing attorney who has passed the National Conveyancer’s Exam and has been admitted as a conveyancer of the High Court of South Africa. When you sell property, the role of the conveyancer is to act as “transferring attorney”.  A conveyancer specialises in the preparation of documents and deeds that are registerable in the Deeds Office and is generally tasked with carrying out the process of registering the buyer as the new owner. The role of the conveyancer are as follows:

• Has to deal with all the parties involved in the transfer and registration process and generally assumes responsibility for the collection and payment of all amounts due;
• After the contract of sale has been entered into, the conveyancer is appointed and instructions are sent to him by the estate agent;
• The conveyancer is required to conduct a deeds search on the property, draft all the necessary documets from the Power of Attorney, Transfer duty and tax declarations, Mortgage documets to the actual transfer documents and the new title deed;
• Protect his client’s (seller) best interest

What are the Costs Involved in the Transfer of Property

Buying property remains one of the most expensive investments any person can make. Over and above the actual cost of the property, a buyer needs to set aside money for “once off costs” as well as “regular monthly costs”.

Once off costs include:

• Bond Registration costs which  includes Conveyancer’s Fees, Sundries & Petties, and Deeds Office Registry Fee;
• Property Transfer Costs which includes Transfer duty costs, Conveyancer’s Fees, Sundries & Petties, and Deeds Office Registry Fee;
• Deposit on the new house;
• Home Loan Initiation Fee;
• Municipal Provision for Rates and Taxes
• Other costs such as Moving costs, Water and Electricity Deposit, Telephone/Web Connection Deposit, etc.

Regular monthly costs include:

• Home Loan administration fee;
• Homeowner’s Insurance;
• Home Loan Protection Assurance;
• Occupational Rent when you occupy the property before the transfer of the property into your name has been registered.

Bailey Haynes Inc. – Attorneys & Conveyancers in Cape Town

When you are ready to make that offer on a property, contact an attorney at Bailey Haynes Inc. We provide professional advice and attend to Property Transfers or Conveyancing and offer a wide range of property related services.