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Before signature of an Offer to Purchase the purchaser should verify the following:

Zoning and allowed usage of the property
Valuation of the property
Restrictive or onerous conditions on the property
Lease agreements, duration and current rental income of the lease if applicable. A lease will have preference over the sale of the property
Current Levies, Taxes, Municipal Rates
Costs of acquiring the property

Entering into a binding Deed of Sale.

The Seller signs the offer to purchase. Once signed the Offer to Purchase becomes a binding contract (Deed of Sale). Usually, the purchaser makes an offer to purchase, which offer to purchase on acceptance becomes a binding contract between the parties. Click here to download a free comprehensive offer to purchase with a discussion and explanation of the basic conditions of an agreement of sale of fixed property. The contract must be in writing and signed by both the seller and purchaser to be valid and binding. Once signed the deed of sale must immediately be faxed or delivered to the conveyancing attorneys (transferring attorneys). Click here for a list of information and documents that must preferably be supplied to the conveyancing attorneys with the deed of sale.

Payment of deposit, securing the balance of the purchase price and investment of deposits. The purchaser pays the deposit (if applicable) to the conveyancing attorneys on-demand or in terms of the contract. Depending on the amount the deposit or purchase price is invested with the written consent of the purchaser at a Financial Institution. The interest usually accrues to the purchaser.

Applying for finance from a financial institution. (Bond origination or directly through your Financial Institution). If the contract is subject to the purchaser acquiring finance the purchaser applies for finance in person or through the use of a mortgage originator. Click here for the information and documentation needed to apply for finance or if we need to assist you in this regard. The financial institution grants approval in principle (A.I.P), values the property and instructs the bond attorneys.

Applying for Cancellation Figures.
The transferring attorneys apply for cancellation figures from the Sellers current bondholder (if any). It is essential that they have your bond account number to do this. Notice in terms of.

Valuation of the Property.

The buyer's bank sends out a valuator to assess the value of the property the buyer intends to mortgage. The Bank may also require that the property be inspected for beetle infestation (coastal properties).

Obtaining an Electrical Compliance Certificate.

The Seller must obtain an Electrical Certificate of Compliance, and supply it to the Transferring Attorneys. The Financial Institution that grants the new Bond over the property will also require such a certificate.

Final Grant of Finance

The buyer's home loan is granted, subject to the valuation and credit approval the Bank advises the Bond Attorneys to register a Bond. Panel Attorneys discussion.

Request rates Clearance Certificate.

The Transferring Attorneys also request a Clearance Certificate for the Rates and Taxes from the Local Municipality.

Drafting Transfer Documentation.
The Transfer documents are then drawn up by the Transferring Attorneys once all the information in is obtained. The Transfer Documents include:

The Transfer Duty or VAT application to the South-African Revenue Service.
The Rates & Taxes Clearance Certificate. (from the Local Municipality) or Levy.
Clearance Certificate (from the Body Corporate).
The Consent of the Bondholder (Bank which holds the current bond) to cancel the current bond.
Consents required in terms of conditions in the Title Deed (i.e. a right of first refusal waived by the interested party).
The Current original Title Deed
The new pro forma Title Deed

Requesting Guarantees

The Registering (Bond) Attorneys advise the Transferring Attorneys of the amount available for guarantees (the amount of the new bond over the property). The Transferring Attorneys then advise the Cancellation Attorneys to cancel the seller's bond, which is done upon receipt of the guarantees. Once the Transferring Attorneys receive the Title Deed and Cancellation Figures from the seller's bank, they send a copy of the Deed of Transfer and guarantee requirements to the Registering (Bond) Attorneys.

Payment of Transfer Costs.

Transfer Costs, with which the Transferring Attorneys pay the Rates and Taxes and Transfer Duty to the Receiver of Revenue and a Transfer Duty Receipt is issued.

Signature of Bond Registration Documentation

The buyer's Bond Account and Supporting Documentation are prepared by the Registering (Bond) Attorneys. Signature of Transfer Documentation. The Purchaser and Seller sign the Supporting Documentation and pays the Bond Registration Costs to the Registering (Bond) Attorneys. The Transfer Documents are signed by Purchaser and Seller, with the Transferring Attorneys

Guarantees

The necessary guarantees are prepared by the Registering (Bond) Attorneys and forwarded to the Transferring Attorneys, who prepare the bond documents for lodgement with the Deeds Office. The Transferring Attorneys then forward the guarantees to the Cancellation Attorneys, who get consent from the Bank (which currently has a bond over the property), to cancel the Seller's Bond.

Lodgement and Tracking in the office of the Registrar of Deeds

Once all the documentation is signed and all the costs are paid, the buyer's new bond documents, the transfer of the property (into the buyer's name) documents and the cancellation of the seller's bond documents are prepared by the respective attorneys and lodged in the Deeds Office - simultaneously.

The Registration Process in the Deeds Office

The Deeds Office takes approximately 7-10 working days to check all the documentation before they are ready for registration by all the attorneys on the same day.

Preparation (Prep)

Registration of the New Title Deed and supporting documentation in the office of the Registrar of Deeds.

Payment of Guarantees and Final Statement of Account

The Bank pays out the loan in accordance with the guarantees issued and the estate agent is paid the commission.

If you are selling or buying a property in South-Africa you can count on Conveyancing24.co.za to offer you a competitive written quotation. Our free written quotation will be fully itemised with no hidden costs. In just a few clicks you can receive a written conveyancing quote. Get started – Click Here

For further information or to book a consultation please contact us on:

Louwrens Koen Attorneys

Tel: 087 0010 733
E-mail:   Louwrens Koen

Saturday, 22 February 2020 07:51

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+ 27 087 0010 733
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Louwrens Koen Conveyancers

Office 4, Second Floor, Northern Pavilion, Gate 12, Loftus Versveld, 416 Kirkness Street, Arcadia, Pretoria, South Africa

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Saturday, 22 February 2020 07:18

About Louwrens Koen

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Louwrens Koen

Practicing Attorney, Conveyancer and Notary Public

Pretoria, South-Africa

+27(0)870010733

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Louwrens Koen was admitted as an Attorney in 1995 after completing his Blc LLb degrees from the University of Pretoria. He is also an admitted Conveyancer, Notary Public and University Guest Lecturer.

Also visit the following websites to find out more about our innovative approach and services:

• http://antenuptial24.co.za - Antenuptial Contracts explained and registered.
• http:/conveyancing24.co.za - Property Law, Conveyancing.
http://liquidation24.co.za - Corporate Insolvency
• http://notary24.co.za - Document legalization and Notary Public services.
• http://trusts24.co.za -Registration of Family Trusts and Independent Trustee Services.
• http://wills24.co.za - Wills and Deceased estate administration explained.

Education

  • B.L.C. University of Pretoria

    1999 - 2001

  • L.L.B. Unniversity of Pretoria

    2002 -2003

Areas of Expertise

  • Property Law and Conveyancing

  • Trust Law and Independent Trustee Services

  • Notary Public Services

  • Document Legalisation Services

Get Written Conveyancing Quotation

If you are selling or buying property in South-Africa you can count on Conveyancing24.co.za to offer you a competitive written quotation. Our free written quotation will be fully itemised with no hidden costs. In just a few clicks you can receive a written conveyancing quote. Get started – Click Here

For further information or to book a consultation please contact us on:

Louwrens Koen Attorneys

Tel: 087 0010 733
E-mail: Riana Fourie   Louwrens Koen

Monday, 03 February 2020 19:22

What is a Notarial Bond

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A notarial bond is a limited real security which hypothecates movable property in an attempt to secure the bondholder’s ranking for the satisfaction of a debt.[138] To be valid, a notarial bond must be notarially executed, and to be enforceable against third parties, it must be registered in the Deeds Registry at the bond debtor’s place of residence or registered office within three months of execution.[139] A notarial bond can only be taken over movable property and merely grants the bondholder a right of preference (prior ranking) over unsecured creditors and hypothec holders at the debtor’s insolvency.

 

 

Generally, the bondholder does not possess the bonded property, and therefore notarial bonds usually contain “perfection clauses” allowing the bondholder to seize and dispose of the bonded property when the debtor defaults. A notarial bondholder does not acquire a security right until the bond is perfected by taking possession of the bonded property,[140] which may be construed by an attachment by a sheriff or messenger on the bondholder’s behalf.[141] In other words, the requirements for a valid pledge must be fulfilled. A bondholder may not exercise this right without a court order or the debtor’s consent; moreover, the perfection clause must be included in the bond. Notarial bonds take two forms: general and special.

Louwrens Koen Attorneys can assist with the registration and cancellation of Notarial Bonds.

For further information contact us on Tel: 087 0010 733 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Louwrens Koen

 

Sunday, 02 February 2020 16:47

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When you plan to buy or sell your most important investment, you need legal assistance of the highest quality to ensure the accurate and speedy processing of your transfer. We offer professional service of the highest standard providing personalised service to our valued clients, whether buyer or seller. We know that regular feedback on the progress of your transaction is important to you, and offer instant notification of updates via sms and email.

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Conveyayancing and Property Transfer Services

Our Conveyancing Services include:

  • Approachable friendly conveyancer who will assist you through the whole purchase and transfer process

  • Free offer to purchase/deed of sale download service

  • Assistance with the completion of offer to purchasers

  • Written conveyancing quotations

  • Negotiating property transfer fee's

  • Free first consultation to discuss your property transfer needs

  • Registering the transfer of residential, sectional title, commercial, industrial, agricultural and recreational real estate

  • Negotiating and drafting real estate agreements

  • Assistance with purchasing and developing residential and commercial real estate

  • Preparing and submitting the registration of mortgage loans, surety and collateral bonds for institutional and private clients

  • Preparing and registering all notarial bonds for institutional and private clients

  • Preparing and registering notarial deeds (including servitudes, deeds in respect of sectional title schemes, lease agreements, notarial tie agreements)

  • Undertaking real estate due diligence investigations

  • Advising on the financial structuring of real estate transactions

  • Advising on real estate taxes (transfer duty, value added tax and capital gains tax)

  • Assisting non-resident purchasers and sellers of property in the countries in which we operate

  • Advising on and drafting of commercial and residential leases

  • Assisting with real estate sub-divisions and consolidations

  • Advising on the establishment and registration of townships

  • Advising on deceased and insolvent estate property transactions

  • Assisting with the planning, developing and registering of sectional title schemes, retirement villages, recreational estates and golf course estates

  • Assisting with commercial real estate structuring

Louwrens Koen was admitted as an Attorney in 1995 after completing his Blc LLb degrees from the University of Pretoria. He is also an admitted Conveyancer and is the author of hundreds of legal articles on the worldwide web.

 

 

Why you should choose us

Louwrens Koen Attorneys, Conveyancers and Notaries is a dynamic lawfirm, which believes that all clients must enjoy quality and cost effective service through the use of electronic media technology. We have a modern outlook on life and have modern solutions for today's problems and needs without compromising on traditional values.

Louwrens Koen was admitted as an Attorney in 1995 after completing his Blc LLb degrees from the University of Pretoria. He is also an admitted Conveyancer, Notary Public and University Guest Lecturer.

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Sunday, 02 February 2020 15:53

About Louwrens Koen Conveyancers

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Our Property Transfer and Conveyancing Services.

Louwrens Koen Attorneys, Conveyancers and Notaries are a dynamic law firm, which believes that all clients must enjoy quality and cost effective legal services. We have a modern outlook and have offer technological legal solutions without compromising on traditional values.

Our Conveyancing Services include:

  • Approachable friendly conveyancer who will assist you through the whole purchase and transfer process

  • Free offer to purchase/deed of sale download service

  • Assistance with the completion of offer to purchasers

  • Written conveyancing quotations

  • Negotiating property transfer fee's

  • Free first consultation to discuss your property transfer needs

  • Registering the transfer of residential, sectional title, commercial, industrial, agricultural and recreational real estate

  • Negotiating and drafting real estate agreements

  • Assistance with purchasing and developing residential and commercial real estate

  • Preparing and submitting the registration of mortgage loans, surety and collateral bonds for institutional and private clients

  • Preparing and registering all notarial bonds for institutional and private clients

  • Preparing and registering notarial deeds (including servitudes, deeds in respect of sectional title schemes, lease agreements, notarial tie agreements)

  • Undertaking real estate due diligence investigations

  • Advising on the financial structuring of real estate transactions

  • Advising on real estate taxes (transfer duty, value added tax and capital gains tax)

  • Assisting non-resident purchasers and sellers of property in the countries in which we operate

  • Advising on and drafting of commercial and residential leases

  • Assisting with real estate sub-divisions and consolidations

  • Advising on the establishment and registration of townships

  • Advising on deceased and insolvent estate property transactions

  • Assisting with the planning, developing and registering of sectional title schemes, retirement villages, recreational estates and golf course estates

  • Assisting with commercial real estate structuring

 

Louwrens Koen was admitted as an Attorney in 1995 after completing his Blc LLb degrees from the University of Pretoria. He is also an admitted Conveyancer and is the author of hundreds of legal articles on the worldwide web.

Also visit the following websites to find out more about our innovative approach and services:
• www.antenuptial24.co.za - Antenuptial Contracts explained and registered. Easy online registration process.
• www.conveyancing24.co.za - Property Law, Conveyancing, Sectional Title and Transfer costs explained.
• www.liquidation24.co.za - Liquidation of Companies and Close Corporations comprehensively explained. Free initial consultation.
• www.notary24.co.za – Comprehensive Notary Public, Apostille, Authentication and document legalisation services.
• www.trusts24.co.za -Trust Law explained. Easy online registration process.

 

Our Conveyancing Team

  • Louwrens Koen BLC LLB

    Practicing Attorney, Conveyancer and Notary Public

    Louwrens Koen was admitted as an Attorney in 1995 after completing his Blc LLb degrees from the University of Pretoria. He is also an admitted Conveyancer, Notary Public an University Guest Lecturer. .

  • Riana Fourie

    Senior Conveyancing Typist

    Riana is an Senior Conveyancing typist with 25 years applicable experience.


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Office4, Second Floor, Northern Pavilion, Loftus Versveld, 416 Kirkness Street, Arcadia, Pretoria

Beware before you sign offer to purchase.

Buying property will probably be the most important documents you will sign in your life. It is best to have a Conveyancer draft or scrutinise the Offer to Purchase before signature.

When both parties sign the offer to purchase it becomes a binding legal contract setting out the parties rights and obligations. You will sometimes hear the phrase buyer remorse or the Latin Phrases Caveat emptor or caveat scriptor.

Never be pressured to sign a contract you have not carefully scrutinized. It is not uncommon for an agent or seller to use a closing technique by pressurising the Purchaser with a statement that the purchaser must immediately sign because there are other parties also making an offer on the property at that very moment.

Reduce to writing all representations regarding the assets. Never believe salesperson talk. Always get it in writing. If not possible to incorporate in the offer to purchase independently verify the verbal facts as related.

Assess the actual market value of the property and properties in the area.
The municipal valuation of the property. Usually reflected on rates and taxes account. 
Approved building plans for the property. Coverage/Zoning
Check on the availability of amenities, Schools in the area.
Check the crime statistics of the area.
Obtain a copy of the current Title Deed of the property.
Sectional Title/Security estate/Home Owners Association. Check rules, levies and costs.
Electrical and Beetle certificate.
Look at stipulated times for acquiring Finance and the issuing of Guarantees.
Deposit-Pay the deposit in the account of the transferring attorney.

Never fall for

Make sure you are 100% aware of your obligations in terms of the agreement. In certain cases, the seller could end up being entitled to as much as the whole sale price if the buyer is in breach of certain elements of the contract.

Parties to the Agreement. The identities of the parties must be ascertainable.
The seller need not be the owner; he may not yet have taken transfer of the property, but may be allowed to resell it. This must however be disclosed in the contract, as well as who the owner is, and that transfer of the property cannot be passed to the purchaser before the seller has obtained transfer himself.
If a party does not have the contractual capacity to conclude a contract, his name must still be cited, together with the identity of the person assisting him (i.e. the guardian of a minor).
If a contract is entered into on behalf of a company or close corporation (cc), the name of the company or cc must be cited, together with the name of the person authorised to conclude the contract.
If a contract is entered into on behalf of a partnership, the names of the partners must be cited.
It is always a good idea to include contact numbers, i.e. Tel, Fax, Cell & Email.

 Description of Property

 The best description of the property is the one contained in its title deed. If you do not have the title deed available, use your water and electricity bill to locate the erf number and quote it together with the physical address of the property.

 Sale and Purchase of What? Describe all included and excluded fixtures.

When you buy a house, you in fact buy the land on which the house is situated. The house, being a permanent improvement, forms part of the land. All surface and subsurface soil, water, trees and plants on the land are by law included in the purchase. Also included are all the permanent improvements (like a house or other buildings, a borehole or a swimming pool) and all movable items, which have been permanently affixed to a house or other buildings (called permanent fixtures).

All movable accessories which are of permanent service to the immovable property and which are necessary for its effective use of exploitation are also included in the purchase of the property, unless agreed otherwise (Examples are the pool cleaning equipment or stools which go with the built-in breakfast nook.)
It is not a legal rule that certain items like stoves, carpets, light fittings, built-on cupboards, and so on, are permanent fixtures.
To avoid dispute, always specify and describe in writing on the offer to purchase document which items are included and which items are excluded in the purchase/sale, especially if you are not clear whether they are permanent improvements or movable fixtures. For example, whether the swimming pool equipment or television aerial/satellite dish are included in the purchase.

 

Purchase Price and Guarantees

 The purchase price must either be a fixed amount (i.e. R100 000.00) or be readily ascertainable (i.e. R100.00 per square meter, including the correct size of the property). Unless agreed otherwise, the purchase price is payable in a lump sum on transfer of the property to the buyer. The guarantees referred to in the offer to purchase examples mean that the purchaser furnishes the seller with a promise from a bank that the price will be paid in full once the property is registered in the name of the purchaser (the purchaser will then pay off this 'mortgage bond' to the bank).

 Defects - and the "Voetstoots" Clause

BE AWARE of certain defect clauses. In certain instances, the buyer is protected against severe defects discovered after the transfer on a property has gone through. The law will attempt to determine whether the defect is patent or latent, and on these grounds, make a ruling as to who is responsible for the cost of repair.
A patent defect is clearly visible upon inspection, like a crack in a wall or window, and it should be stated in the offer to purchase who will be responsible for fixing (or replacing) the defect.
A latent defect is not so easily picked up on superficial inspection, for example a faulty geyser, a damp area concealed behind furniture or fresh paint or a leaking roof.

The seller is responsible for all latent defects in the property for three years from the date of sale of the property. The seller should supply all warranties and documentation of repairs and maintenance on transfer of the property. At the same token, the buyer must ensure that he is aware of all patent and latent flaws.

As a result of the seller's responsibility for latent defects, sellers will usually stipulate that the property is for sale 'as is' ('Voetstoots'). The seller is still responsible for any deliberately concealed latent flaw or defect. The burden of proving that the seller knows or ought to have known about the latent defect rests on the buyer. Depending on the circumstances, (and if the buyer can prove that the seller knows or ought to have known about the defect), the buyer can cancel the contract and/or claim repayment of a portion of the purchase price when a latent defect is present.

All faults that have been detected should be recorded in the offer to purchase document along with details regarding which party will be responsible for their repair. The purchaser can insist on certain guarantees. For example, under the clause section 'Special Conditions', the buyer can stipulate that, "The Seller hereby warrants that the swimming pool on the Property sold is not leaking at the date of signature hereof by him". To protect yourself, as the purchaser it may be worth having a property inspection company inspect the property. The cost of the inspection will be for the purchasers account.

Risk, Rates, Rental Income and Ownership

The seller is responsible for any loss or damage caused by him (or his children or employees and so on) before the purchaser takes transfer. The agreement can be altered to state that the buyer is responsible for any loss or damage of any kind whatsoever from the date that the buyer takes occupation of the property. In the case of accidental damage or damage due to 'acts of God' the buyer carries the risk from the date of conclusion of a contract, provided the contract is not subject to suspensive conditions, in which case the risk remains with the seller. If the conditions are fulfilled, the risk is deemed to have passed to the buyer.

Usually from the date of transfer the buyer will have all benefits attached to the property and all the risk of the property will pass to the buyer. The buyer will be liable for all rates and taxes and/or levies payable on the property from date of transfer and the buyer will have to refund to the seller, any amounts paid upfront in respect of the rates and taxes and/or levies on the property.

The buyer will have the benefits of any rental income on the property, (if the property is let to a third party at the time of purchase), only once transfer takes place, although this can be regulated contractually between the parties. Ownership of the property takes place on transfer and not on occupation.

Registration and Transfer Fees

The purchaser will be liable for payment of transfer duty and all costs and fees in connection with the registration of the bond and transfer of the property on demand by the conveyancing attorney.

Estate Agents' Commission

 The Seller will be liable for the payment of any estate agents' commission (if applicable) on demand by the conveyancing attorney, once the registration and transfer has taken place.

 Occupation and Occupational Interest

 Occupational Interest is more commonly known as Occupational Rent. The occupational interest can either be a fixed amount (usually it is calculated as either the amount of the seller's bond repayment on the property or 1% of the purchase price) or an amount subject to an escalation if registration of transfer has not taken place within a certain period (this may apply when the occupational interest amount is less than the seller's bond repayments). If there is uncertainty about the occupation date, it is best to record in writing the latest date upon which the purchaser is willing to take occupation of the property.

Domicilia Citandi Et Executandi

Domicilia Citandi Et Executandi, also referred to as Domicilium, is the physical address you give for any legal documents and notices to be served to you. If you have been sent a document or notice to this address, you will be deemed to have received it, even if you did not in fact receive it. This may not be a PO Box or Private Bag address.

Purchaser's Cooling Off Right

Legally the Cooling Off Right does NOT apply if:

 The property is intended to be used for anything other than a residential property;

It is agricultural land;

The purchase price of the property exceeds R 250 000.00 (i.e. from R 250 001.00 and more);

The purchaser is not a natural person (i.e. a trust, company, close corporation, etc.);

The property is purchased at a publicly advertised auction;

The seller and purchaser concerned have previously entered into a sale agreement of the property on substantially the same terms;

The purchaser has nominated or appointed another person to take over his rights and obligations in terms of the offer or sale agreement in question;

The purchaser bought the property by the exercise of an option which was open for a period of at least five working days.

No person will be entitled to any remuneration payable if the purchaser exercises his Cooling Off Right. The buyer cannot waive (give up) his Cooling Off Right.

 "Escape" Clause. Suspensive Conditions

 In certain cases the seller could include what is generally known as an "Escape Clause". When the buyer signs the offer to purchase subject to the buyer selling his existing property or obtaining a home loan for the purchase amount, this kind of condition usually has a time frame in which it needs to be either met or waived, it could be anything between 15 and 60 days. If the seller includes an "escape" clause, it would mean that the seller has the right to accept another offer on the property only if the second offer is "clean," with no such conditions attached. In other words, he can only accept an offer from someone who does not have another property to sell or does not need to get finance from a bank to pay for this property.

If the seller does accept such a second offer after the first offer, he must give the first buyer time (usually 2 days) in which to either meet the suspensive conditions or waive them (waive meaning: continue with the transaction without any condition of selling another property or getting a bond) within that period.

Breach of Contract

A breach of contract exists when one or all of the parties to the contract not to do what was agreed upon in the offer to purchase. Examples of circumstances are:

If the buyer does not pay his deposit to the seller's attorneys in time as agreed upon in the offer to purchase;
If the buyer does not present the necessary guarantees from his bank in time as agreed upon;
If the buyer does not make any effort to get finance for the property, and this was agreed upon in the offer to purchase, to do so;
If either the buyer or seller fails to sign the necessary documentation to effect transfer of the property upon request to do so by the conveyancers.

If you are selling or buying property in South-Africa you can count on Conveyancing24.co.za to offer you a competitive written quotation. Our free written quotation will be fully itemised with no hidden costs. In just a few clicks you can receive a written conveyancing quote. Get started – Click Here

For further information or to book a consultation please contact us on:

Louwrens Koen Attorneys

Tel: 087 0010 733
E-mail: Riana Fourie   Louwrens Koen

 

Wednesday, 30 March 2016 18:43

FAQ Conveyancing 1

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What is Conveyancing?

The term "CONVEYANCING" describes the legal process whereby a person, company, close corporation or trust becomes the registered and lawful owner of fixed property and ensures that such ownership cannot be challenged. It also encompasses the process of the registration of mortgage bonds. (See our brochure on "Mortgage Bonds").

WHAT or Who IS AN CONVEYANCER?

A Conveyancer is an attorney who also passed the national conveyancing examination and by law is the only person who can register fixed property transfers. This is necessary to ensure the protection of the various interests the parties have in the transaction and to maintain the high standard of land registration.

WHO APPOINTS A CONVEYANCER?

The seller usually appoints a Conveyancer to attend to the transfer of fixed property, although this, like other aspects of a sale agreement, can be varied

by negotiation between the parties.

WHAT IS THE FIRST STEP IN THE SALE OF FIXED PROPERTY?

The first requirement is a valid agreement of sale. This is a written agreement which is signed by both the purchaser and seller (and by the sellers’ spouse

in cases where the parties are married in community of property or account to the laws of a foreign country). A written "Offer to Purchase" signed by a

purchaser and accepted by a seller also constitutes a binding agreement. An oral contract for the sale of fixed property is invalid.

 WHAT ARE THE TERMS OF SALE TO BE CONSIDERED BY THE SELLER (AND PURCHASER)?

 The name, address, identity numbers and marital status of both buyer and seller, (e.g. married in or out of community of property, or by way of foreign marriage);

  • if a company is buying, the capacity of its signatory;
  • A clear description of the property;
  • The selling price and manner of payment. If a deposit is payable, that it be held in trust by the named Conveyancer or estate agent;
  • That the buyer is to pay all transfer costs and all taxes and other municipal charges on the property from the date of possession;
  • The date on which the buyer is to take possession and occupation; the date on which transfer is to take place;
  • That the property is sold "voetstoots" or "as is" (in other words without any guarantee by the seller regarding visible or hidden faults);
  • The name of the Conveyancer who will attend to the transfer;
  • That commission is due to a named estate agent, and the amount thereof; that the specific agent introduced the buyer to the property or was the cause of sale;
  • That if the 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 be stated;
  • If a border-free certificate has to be obtained, who must pay for the inspection and any work required;
  • Who will pay for an "electrical certificate" and any work required;
  • That no amendment to the agreement of sale will be valid unless it is in writing and signed by both parties;
  • Where the sale is subject to the purchaser obtaining a loan, the amount of such loan, the institution to whom he/she may apply and the date by which the loan must be approved;
  • Where the sale is subject to the sale of the purchaser's property, a description of the property, the amount for which it is to be sold and the date by which it must be sold.
  • Any special condition which has been inserted either at the instance of the buyer or the seller must be carefully checked. The seller may wish to ensure that certain items are not regarded as immovable, forming part of the property sold. He must check to see that these have been properly listed. It is usually wise to obtain legal advice on special conditions.

WHAT HAPPENS NEXT?

The Deed of Sale is handed to the appointed Conveyancer, who will draft the necessary documents. Both the seller and the purchaser will be required to call at the offices of the Conveyancer to sign the necessary documents. The documents to be signed include the following:

 A Power of Attorney to Pass Transfer

This document must be signed by the seller as it empowers the Conveyancer to transfer the property on his/her behalf.

Declaration in respect of Marital Status, Identity Number and Insolvency

Both purchaser and seller must depose to an affidavit wherein they state their marital

status, identity number and confirm their solvency.

Transfer Duty and Value Added Tax (VAT) Declaration

Transfer duty is a form of tax payable, normally by the purchaser, to the Government and is calculated on the value of the property. Both the purchaser and seller have to sign transfer duty declarations to be furnished to the Receiver of Revenue in which they affirm the purchase price to be paid. VAT is not usually payable on transactions between private purchasers and sellers but will be if the seller is a registered vendor under the VAT Act. Where the seller is registered as a vendor, he will sign a VAT declaration. If VAT is payable on the purchase price no transfer duty will be payable.

Bond Documents

If the purchaser obtains a loan from a financial institution, the lender will require the purchaser to register a bond over the fixed property to secure the loan. To enable the Conveyancer appointed by the financial institution to prepare the necessary documentation, the purchaser must submit his/her identity document, marriage certificate and, if applicable, Antenuptial Contract to the Conveyancer concerned.

 WHAT ARE THE COSTS INVOLVED?

The costs relating to the transfer of the fixed property fall into three categories.

Rates and Levies

Whilst not a cost of transfer, rates and levies must be paid in full on the date of transfer. A pro rata (normally to date of possession) portion of the charges payable on the fixed property to the relevant local authority or the levies payable to the Body Corporate in the case of a sectional title unit.

Fees

The Conveyancer's fees are prescribed by a tariff and are calculated on a sliding scale based on the purchase price. The purchaser is normally liable for payment thereof together with VAT thereon.

Bond Registration Costs

Where a bond is to be registered, stamp duty is payable to the Receiver of Revenue, the amount whereof depends on the amount of the bond. The Conveyancer's fee is calculated on a sliding scale based on the amount of the bond and is payable by the purchaser to the Conveyancer who registers the bond together with VAT thereon.

Bond Cancellation Costs

If the seller has a bond registered over his/her property, this must be cancelled on transfer and the seller is responsible for payment of the Conveyancer's fee

for cancellation together with VAT thereon. Once the documents have been signed by the purchaser and the seller, and the transfer costs, transfer duty and rates and levies have been paid, the Conveyancer may proceed with the registration of transfer of the property in the Deeds Office.

 

Click here to download a comprehensive Offer to Purchase/Deed of Sale/Koopkontrak van grond

Click here for a writer conveyancing quotation

For further information please contact us on:

Telephone: 012 343 0267 ext 4

Fax: 012 343 0269

Cell: 0828805646

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Office 4, Second Floor, Northern Pavilion, Loftus Versveld, 416 Kirkness Street, Arcadia, Pretoria.

 

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