6
How to Buy & Sell Property
Conveyancing: The details of the deal
CONVEYANCING is a term you are guaranteed
to come across when buying or selling property.
This is the where the nuts and bolts of the
transaction reside, and without the conveyancing process no sale can take place.
When you buy and sell property you are
Conveyancing is the transfer of the legal title of property,
and the registration of a mortgage for that property.
transferring ownership of that property. Conveyancing is the term in law that refers to the
transfer of the legal title of property from one
person to another, and the registration of a
mortgage for that property.
Essentially, the conveyancing process is
made up of the exchange of contracts between
the buyer and the seller, and the transfer of
the title for the property. The process aims to
ensure that the buyer gets the title to the property as well as the rights that come with it, and
it is important that buyers ensure that they
get a good title. At its most basic, a good title
guarantees that the seller is indeed the owner
who has the right to sell the property, and that
there are no issues that might impact adversely on the resale or mortgage of the property.
Only a licensed conveyancer (a lawyer who
has passed the national conveyancing exam)
can complete this process for a buyer and sell-
er. The conveyancer is usually appointed by
the seller, even though the buyer will pay the
fees.
A conveyancer will draft a series of documents for the sale to go through:
• A power of attorney (to be signed by the seller) allowing the conveyancer to transfer the
property on the seller’s behalf.
• A declaration (signed by both the buyer and
the seller) confirming their respective ID numbers, marital status and financial solvency.
• VAT and transfer duty declaration (to be
signed by both the buyer and seller) confirming the purchase price. This is then sent to the
Receiver of Revenue so that the transer duty
can be calculated. If VAT is payable — and this
will only be the case if the seller is a VAT vendor — then no transfer duty is payable.
• Mortgage bond documents, if the buyer is
getting a mortgage from a financial institution.
Once these documents are in order, the conveyancer will then:
• Request the title deed and mortgage cancellation figures from the seller’s bond holder (if
there is one), attorneys or conveyancers.
• Get written confirmation of the buyer’s mortgage from the financial institution.
• Get a clearance certificate from the local
municipality that ensures that all outstanding
taxes, utility bills or levies are paid.
• Lodge this clearance certificate at the Deeds
Office.
• Draft transfer documents and new title deed.
• Send the draft deed and guarantee requirements to the buyer’s lender or lender’s lawyer,
so that they can draw up title guarantees.
Once the buyer and seller have signed the
transfer documents and any applicable transfer costs are paid, the seller must consent to
the cancellation of his or her mortgage before
the deed is lodged at the Deeds Office. Usually,
it will be registered within eight to 14 days.
The seller’s mortgage will be cancelled after that and any balance, less commissions or
penalties, will be repaid.
Efficient. Experienced.
Cost-effective legal advice
Attorneys. Conveyancers. Notaries.
368 Jabu Ndlovu Street, Pietermaritzburg
T: 033 345 1319
E: [email protected]
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Contact Ingrid Edmonds, Conveyancer, at 082 908 6688 or 033 345 3501
Email: [email protected]
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