10 Conveyancing terms you need to know as the property buyer/seller
The transferring/conveying of property from a seller to a buyer can be a lengthy process that involves multiple people and lawyers. It is essential that the paperwork is done to the highest standard and that the property is properly from the seller’s ownership to the buyers. There is a lot of terminologies and specialised terms that real estate agents and lawyers will be very familiar with when transferring occurs. These terms might be completely foreign to the buyer/seller, and in this article, we would like to fix some of that. Read on to gain some insight into the terminology that can be used when your home is being transferred.
- Bond attorney
The bond attorney is one of the three main attorneys that will work to ensure the property is transferred properly. This attorney is responsible for getting the buyer’s bond registered after the home loan has been approved. The bond attorney is usually appointed by the bank providing the home loan.
- Bond originator
The bond originator is the person responsible for the new bond application. In other words, it is the buyer that now needs a bond.
- Cancellation attorney
The cancellation attorney works with the bond attorney, but this individual is responsible for getting the seller’s existing bond cancelled at the bank. He/she is usually appointed by the bank that provided the seller with his/her bond.
- Conveyancing
Conveyancing is the branch of the law that has to do with the preparation of all the documents to have a property transferred. Conveyancing attorneys have to be registered as such to be able to practice in this specialised area of the law.
- Bond cancellation costs
The discharge cost is the charge involved in getting the sellers bond cancelled. Whenever a bond is transferred to a new bond provider, additional fees may be charged to be released from the bond early and the seller’s bond has to be settled before the property transfer can continue.
- Lodging attorney / Correspondent attorney
Towards the end of the transferring process, once all bonds are ready to be cancelled and/or approved, the transferring attorney will ready all the documentation that needs to be submitted to the Deeds Office. There is crucial documentation that needs to be submitted at the same time or the transfer cannot progress. If the transferring attorney is not in the vicinity of the Deeds Office, he/she can instruct a lodging office to complete this step. The lodging attorney will contact the bond and cancellation attorney to ensure the required documents are submitted at the same time.
- Rates Clearance Certificate
This certificate is obtained from the municipality in which the property is located. It states that the current owner no longer owes any money on the municipal charges associated with the property. The transfer of the house cannot continue until this certificate has been obtained.
- Transferring attorney
This attorney is primarily responsible for the transfer of the property. He/she must be a qualified conveyancer and they are usually appointed by the seller. The real estate agency/agent involved in the sale could also advise the seller of a reputable transfer attorney if the seller doesn’t know of one. The attorney oversees all the aspects of the process like administrative tasks, drafting transfer documents, communicating with all the parties involved, etc.
- Transfer duty
The transfer duty is a cost above and beyond the agreed-to price of the property that needs to be paid to SARS when the property is transferred. The value of the house will determine the value of the transfer duty. This duty needs to be paid to SARS within 6 months of the sale date.
- Transfer fees
The transfer fees are also calculated above and beyond the price of the property, but it is payable to the transferring attorney for their services. The final amount is partially determined by the attorneys and partially by the Legal Practice Council’s guidelines as to fees payable to transferring and bond attorneys.
The home buyer and/or seller doesn’t always need to know the intricacies of what it is the different attorneys are doing, but when they are familiar with these 10 terms, the transferring process can be much easier to understand.
A reputable conveyancing attorney, like those at AED attorneys, will be able to keep the buyer and/or seller fully informed and up to date on what is happening with the transfer of the property so they are never left in the dark or have unexpected expenses pop up.
AED Attorneys understands that every situation is unique, and although they strive to ensure that the information contained herein is accurate at the time of publishing, it cannot be guaranteed to be without errors or omissions. As a result, AED Attorneys, its employees, independent contractors, associates or third parties will under no circumstances accept liability or be held liable for any innocent or negligent actions or omissions in this article, which may result in any harm or liability flowing from the use of or the inability to use the information provided.