PROPERTY QUESTIONS

A conveyancer is an admitted and practicing attorney who wrote an extra exam to be able to transfer property.

Not all attorneys are conveyancers but all conveyancers are attorneys.

The conveyancer will register the transfer of the property from the seller to the buyer.

Transferring attorney is another word for a conveyancer.

Only conveyancers can transfer property.

The seller chooses the conveyancer, unless the parties agree that the purchaser will appoint the conveyancer.

Be careful of estate agents who push for their conveyancer to be appointed, it is unlawful.

As soon as all the documentation is signed, the taxes and transfer costs paid, the documents can be lodged and the transfer registered.

The seller gets his money on day of registration (or very close to it) of the transfer of the property from the seller to the buyer.

Usually an estate agent. If there is no estate agent involved and you appoint us as the conveyancers, we will draft the sale agreement free of charge

Electrical, plumbing, gas, swimming pool, electric fence.

If your house is worth more than R900 000 and you are not registered for VAT, yes, you must pay transfer duty.

Absolutely yes, but discuss it with us first as it is expensive and if there is no bond on the property.

When a property is transferred from a seller to a buyer, the rates and taxes must be paid in advance.

The municipality will issue a clearance certificate after the rates and taxes were paid to confirm that the taxes have been paid.

If the property is subject to transfer duty, SARS must issue a transfer duty receipt to either confirm that the transfer costs were paid or that there are no transfer costs payable.

Houses under R900 000 (in 2017) do not pay transfer costs. If the seller is registered for VAT, there is also no transfer duty payable because VAT is payable.

Transfer costs are the costs paid to the conveyancer to handle the transfer.

The costs are prescribed and works on a sliding scale based on the value of the property.

The purchaser pays the transfer costs.

The Seller pays the VAT, unless the parties agree that the Seller will pay the VAT.

The purchaser pays the transfer duty.

On or before date of the transfer of the property from the name of the seller to the name of the buyer.

This must be contracted about.

It is not obligatory.

If the seller does not require a deposit, the purchaser does not have to pay a deposit.

The person(s) in whose name the property is registered sign the documents.

If the property is registered in the name of a Company or Close Corporation, one of the directors/members sign the documents.

There are certain documents that are required to be signed that the conveyancer will draft and arrange signature with you.

On date of transfer or very shortly afterwards. Sometimes the bank takes a day or two to give the cancellation figures on any bond that is registered on the property so it can slow us down.

The bank who holds the bond appoints its own conveyancers to cancel the bond.

The bond is a legal contract that can only be cancelled by the actual cancellation thereof.

The bond on the property must be cancelled when it is fully paid.  It is cancelled by removing it from the Title Deed of the property.

A conveyancer will do this as part of the transfer transaction.

No, the bond cancellation costs are a costs specifically to cancel the bond.

The transfer costs are specifically to pay the conveyancer to transfer the property from the seller to the buyer (and expenses are included).

No. If the Seller is registered for VAT, the Seller pays VAT.

If the Seller is not registered for VAT, the buyer pays transfer duty.

One either pays VAT or transfer duty, not both. (thank goodness!)

You only pay capital gains tax if the property was not your primary residence.

Depending on the wording in the agreement, but once the offer to purchase was signed, a valid agreement was established that cannot be cancelled without putting the cancelling party in breach.

This said, if there are suspensive conditions that must be fulfilled, (such as that the sale is subject to the purchaser’s house being sold first or that the purchaser must obtain a bond first) then the contract will lapse and the buyer does not have to cancel.

If the suspensive conditions have been fulfilled, the parties cannot cancel the agreement without being liable for damages that the other party may suffer.

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