We are proud of our legacy as pioneers in conveyancing with a culture built upon being accessible to you, our client. Growing through the decades, we have gained recognition as accredited specialist property law arbitrators...
Because it’s a month of new beginnings as we reveal our new Mc Naught & Co identity, we thought we’d discuss all things Property & Conveyancing. Here are some of your most common questions answered:
How does conveyancing work?
Conveyancing is the action of preparing documents for the conveyance of property from one owner to another. Before a matter can be lodged in the Deeds Office for registration, the attorneys must be prepared with all required documents. A standard transfer process involves three sets of attorneys:
- Transfer attorney: manages the transfer of the property from the name of the seller to the name of the buyer in the Deeds Office.
- Bond registration attorney: handles the registration of the mortgage bond by the buyer in favour of the bank over the property in the Deeds Office.
- Bond cancellation attorney: attends to the cancellation of the seller’s existing bond in favour of his/her bondholder in the Deeds Office.
How long does the registration process take?
The bond registration process can take between six and eight weeks from bond grant to registration, provided there are no delays.
Who pays the transfer and bond registration costs?
These costs are payable by the buyer and not the seller.
What costs is the seller liable for?
- Estate agent’s commission: Payable from your proceeds on the date of registration.
- Bond cancellation costs: The bank will instruct a bond cancellation attorney to cancel the bond it holds on your property. The bond cancellation attorney’s fee is payable before registration.
- Rates and/or levy clearance: The Deeds Office requires proof that all your rates, levies and utilities are paid up to date. The transfer attorney will obtain clearance figures from the municipality and body corporate/homeowners association. You must settle these fees in advance but will receive a pro-rata refund of any credit on your account after registration.
- Electrical compliance certificate (ECC): This must be provided by an accredited electrician before registration. The electrician’s fee, as well as any repairs required to obtain compliance, is for your account.
Other possible costs (where applicable):
- Certificate of compliance for a gas installation
- Electric fence compliance certificate
- Entomology certificate
- Water/plumbing certificates
- Costs of bridging finance
- Any additional costs listed in the Offer to Purchase
What costs is the buyer liable for?
- Transfer and bond registration costs: Banks generally do not advance costs to buyers as part of the home loan. You will need to have these costs available in cash.
- Pro-rata levies: If there is a levy payable on the property you are buying, you may be liable for pro-rata levies from the date of registration until the date the levy clearance figures were paid by the seller.
- Bond initiation fee: You may have to pay the bond initiation fee charged by the bank in cash. Consult your bank or bond originator for confirmation.
The offer made by the buyer to the seller is a binding contract once the seller accepts it. The buyer cannot cancel or withdraw from the offer as they will be in breach of contract. The buyer will be liable for damages, costs and the estate agent’s commission.
The buyer must pay occupational rent to the seller from the date of occupation (the date on which the buyer receives the keys) if they are not yet registered owners.
The decisions when buying a new property are endless. One of the most stressful decisions is structuring your bond repayments. If you’re thinking about taking the plunge into the complex but exciting world of property ownership, try out our Bond Repayment Calculators on our new website at https://maclaw.co.za.
Please contact our offices should you require assistance in rates / levy estimation or require assistance in sectional title requirements estimation.
We’re here for you.
