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How is the conveyancer nominated?
Usually the Agreement of Purchase and Sale provides for a transfer to be carried out by the appointed conveyancer. The appointed conveyancer is under an obligation to ensure that the interests of both the seller and the purchaser are protected and that they are both fully informed as to the progress of the transfer.
Property Transfers
Introduction
It is required that ownership of land is transferred from the owner of the property to the person who has acquired it and this is carried out by means of a Deed of Transfer. In order to have the property transferred it must be attended to by a qualified conveyancer.
Procedure
On receipt of transfer instructions the conveyancer will:
Properly examine the Agreement of Sale and ensure that the contract concluded is valid and binding and that if there are any performances due by the parties that they are carried out when required by the contract.
Obtain the original Title Deed of the property and determine whether any payments are required to cancel the existing mortgage bond.
Contact the Seller and Purchaser for particulars proving their status for example copies of identity documents, marriage certificates, divorce orders, ante nuptial contracts etc.
The conveyancer will check and verify the personal particulars of the parties and confirm that the requirements of FICA have been complied with.
Inform the purchaser of his contractual obligations and inform him of the amount to be paid in respect of the proforma transfer costs.
Preparation of Documents
Once the transfer documents have been prepared the conveyancer will call the parties in to sign and will request a guarantee to cover the purchase price and one to discharge any existing bonds.
Registration Procedure
Once the purchase price has been secured the transfer duty receipt, clearance certificate received and all suspensive conditions in the contract have been complied with the transfer documents will then be ready to be signed by a conveyancer and sent to Pietermaritzburg for lodging in the Deeds Registry’s Office together with the new bond and the cancellations of the existing bond. The aforementioned documents will have to be lodged simultaneously so as to protect the interests of the different parties. These documents are then examined by the Deeds Office examiners and if they are in order are registered by the Registrar approximately one week after lodgement.
Finalising the File
Transfer of ownership passes to the Purchaser on registration in the Deeds Registry’s Office at which time the guarantees are presented for payment, final accounts are prepared and the proceeds are distributed. The conveyancer will make the final adjustments of liability for rate payments and occupational rental between the parties.
Transfer and Bond Costs
A large portion of the transfer costs is made up of the transfer duty, which is paid to the Receiver of Revenue. The aforementioned transfer costs include the conveyancers costs of transfer and the purchasers share of current rates due to the local authority.
Should the Purchaser obtain a loan, which is to be secured by a mortgage bond he would also need to ascertain the cost of registering the bond as these would not be included in the transfer costs. Before signing the Agreement of Sale the Purchaser should ascertain what the approximate costs of registering both the transfer and the bond would be. To assist in the aforementioned please see our annexure “A” and “B”.
Sundry Costs
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Additional Estimated Costs Payable, which may apply in different circumstances
Conventional Transfer
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Rates Clearance R150.00
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Postage & Petties (Inclusive of Vat) R228.00
Sectional Transfer
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Levy Clearance (Estimate) R450.00
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Exclusive Use area (Inclusive) R855.00
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Postage & Petties (Inclusive of Vat) R228.00
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Search Fee (Estimate) R130.00
Seller Costs
Entomologists certificate (Excl. Treatment) R300.00
Electrical Certificate (Excl. Repairs) R300.00
Bond Cancellation R850.00 (For first bond including Deeds office Fee)
Every additional bond inclusive R174.00
Estate Agents Commissions (Inclusive of Vat) 8.55%
Deeds Office Fee (Transfers)
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Any transaction that does not exceed R80 000 R55.00
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Over R80 000 and up to and including R150 000 R200.00
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Over R150 000 but does not exceed R300 000 R260.00
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Over R300 000 but does not exceed R500 000 R340.00
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Exceeds R500 000 but does not exceed R1 million R400.00
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Exceeds R1 million but does not exceed R2 million R500.00
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Exceeds R2 million but does not exceed R3 million R650.00
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Exceeds R3 million but does not exceed R5 million R800.00
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Exceeds R5 million R1000.00
Deeds Office Fee (Bonds)
A bond of which the amount:-
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Does not exceed R150 000 R200.00
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Exceeds R150 000 but does not exceed R300 000 R260.00
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Exceeds R300 000 but does not exceed R500 000 R340.00
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Exceeds R500 000 but does not exceed R1 million R400.00
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Exceeds R1 million but does not exceed R2 million R500.00
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Exceeds R2 million but does not exceed R3 million R650.00
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Exceeds R3 million but does not exceed R5 million R800.00
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Exceeds R5 million R1000.00
Bonds
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Alienation Certificate R68.40
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Insurance Certificate (Sectional only) R175.00
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Body Corporate Financial (Sectional only) R100.00
The PURCHASER will also be liable for a share of the annual rates in the case of conventional properties and monthly levies in the case of sectional title properties. In addition, if occupation takes place before transfer, the PURCHASER will be liable for occupational rent. In the case of bonds, the financial institution will also render various charges – e.g. inspection fee, interim interest – details of which should be obtained from such institution.
Bond Repayment Estimates
Multiply the number of thousands in the bond capital by the relevant figures. EXAMPLE: The monthly repayment for a R120 000,00 bond over a 20 year period at 13,75% per annum is R120 x 12.25 =R1470.00 per month.
Bond Repayment Estimates
BOND REPAYMENT CALCULATIONS
(e.g R1 000 000 over 20 years @ 10% p.a. = R1 000 000 / 1000 x 9.65 = R9 650.00 per month
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% p.a. |
7% |
7.5% |
8% |
8.5% |
9% |
9.5% |
10% |
10.5% |
11% |
11.5% |
12% |
12.5% |
13% |
13.5% |
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20 years |
7.75 |
8.06 |
8.36 |
8.68 |
9 |
9.32 |
9.65 |
10 |
10.32 |
10.66 |
11.01 |
11.30 |
11.72 |
12.07 |
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30 years |
6.65 |
6.99 |
7.34 |
.69 |
8.05 |
8.41 |
8.78 |
9.15 |
9.52 |
9.90 |
10.29 |
10.67 |
11.06 |
11.45 |
Note: This page / table is designed to give an ESTIMATE of the costs involved in buying and selling of fixed property and is based on costs as at 1 st March 2006.Fees are based on the tariff recommended by the Law Society of South Africa. While every care is taken in its preparation no liability will attach because of any errors.
Conveyancing Tarrif - Basic Costs Payable by The Purchaser
Note: In addition to the basic costs there are other costs to be added see back page.
click here to view or download the Conveyancing Tariff document as described above
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