To understand the conveyancing process, there are certain basic terms and things to consider. Let us provide you with the following information to further guide you in understanding the conveyancing process.
The Estate Agent
An estate agent is appointed by the seller of a property to help market and sell their property.
The Sale Agreement
The sale agreement is a binding contract between the buyer and the seller of a property and forms the basis of the transaction. The sale agreement is also sometimes referred to as the “Deed of Sale.”
The Mortgage Bond
This is a special loan which is registered in the Deeds Office. The Mortgage bond uses fixed property as security.
The Original Title Deed
The Title Deed is a legal document that confirms that someone is the rightful owner of a certain property after it has been transferred onto their name.
The Deeds Office
A branch of the Department of Agriculture, Land Reform and Rural Development. They are responsible for the examination, registration and record-keeping of all transactions related to property.
The Transferring Attorney
A legal practitioner that specialises in transferring process of ownership of immovable private or residential property, from one person to another.
The Bond Attorney
The put it simply, the bond attorney is responsible for the registration of a bond in the buyer of a property’s name. They are appointed by the bank granting the home loan.
The Lodging Attorney
A legal practitioner situated near the Deeds Office and will act on behalf of the Transferring Attorney who are sometimes far away from the Deeds Office.
The Cancellation Attorney
Is a legal practitioner appointed by the bank and takes care of cancelling the bond on behalf of the seller of a property, which is then handed over to the transferring attorney.
Cancellation Figures
Also referred to as the “Discharge Costs”. It refers to the seller’s intention to sell their property and to cancel their loan on said property.
Transfer Costs
These are additional expenses that will arise when purchasing a home. This may include for instance postage, FICA, transfer duty and petties etc.
Rate Clearance Certificate
The Rate Clearance Certificate is a document provided by the relevant local authority on application by a conveyancer to transfer a property. This document certifies that there is no current outstanding debt due by the seller on the property.
What are the terms of sale that the seller and purchaser should take into account?
- The name, address, identity numbers and marital status of both buyer and seller.
- If a legal entity is buying, the capacity of its signatory.
- A clear description of the property.
- The selling price and method and manner of payment. For instance, if a deposit is payable, it should be held in a trust by the named Conveyancer or estate agent.
- It should be stated that the buyer will pay all transfer costs, all taxes and all other municipal charges on the property from the date of purchase.
- The date on which the buyer is to take possession and occupation of the property as well as the specific date on which it will take place.
- The details of the Conveyancer who will attend to the transfer.
- That the property is sold “voetstoots” or “as is” (Alternatively, without any assurance from the seller regarding apparent or concealed flaws).
- That commission is due to a named estate agent, and the amount thereof
- It should be stated that if occupation is taken before the date of transfer, the buyer will pay occupational interest or rental from that date. The amount and manner of payment must also be stated.
- If a beetle-free certificate has to be obtained, who must pay for the inspection and any work required (Certifies that the wood of the permanent structures on the property are free from certain wood-destroying beetles).
- In most cases, the seller will pay for an electrical certificate and any other possible work required.
- No amendments to the sales agreement shall be valid unless both parties sign in writing.
- If the sale is contingent on the purchaser receiving a loan, the amount of that loan, the institution to which the purchaser can apply, and the date by which the loan, must all be approved.