Buying a home is a significant milestone, and one of the crucial aspects is the conveyancing process. If you're a South African homebuyer, navigating the intricacies of conveyancing can feel like stepping into uncharted territory.

In this blog, we will walk you through conveyancing in South Africa, explaining everything you need to know about the process.

What is Conveyancing?

Conveyancing is the legal process of, but not limited to, transferring ownership of an immovable property from the transferor to the transferee. It involves a series of legal and administrative steps to ensure that the transfer is valid, secure, and legally binding.

Conveyancing in South Africa

Property and Person Searches and Due Diligence

Before diving into the transaction, your conveyancing attorney will conduct thorough property and person searches to ensure that firstly, the property is clear and free from any encumbrances or disputes, and secondly, the person transferring the property is entitled to transfer the property. This step is crucial in uncovering any potential issues that might affect the transaction.

Drafting and Reviewing the Sales Agreement

Once the property is deemed clear, an agreement of sale (more commonly known as an ‘Offer to Purchase’) is drafted. This legally binding document outlines the terms and conditions of the sale, including the purchase price, payment schedule, and any special conditions. Both parties will review and negotiate the agreement, with their attorney, ensuring that their interests are protected.

Obtaining FICA and Compliance Certificates

As part of the legal requirements, the parties involved must comply with the Financial Intelligence Centre Act (FICA). The conveyancing attorney will guide you through the process of obtaining your FICA documents, ensuring that the transaction meets regulatory standards, and that all parties’ identities are verified in their respective capacities.

There are 5 compliance certificates that could arise in an agreement of sale, namely electrical, electrical fence, beetle, gas and plumbing/water. Whichever is applicable to the relevant property, and is stated in the sale agreement, must be supplied by the Seller/Transferor before the property is transferred. The compliance certificates are put in place to ensure that the property is compliant and safe to be transferred to the transferee.    

Transfer Duty and Taxes

Property transactions in South Africa are subject to transfer duty, which is a tax payable to the South African Revenue Service (SARS). Your attorney will calculate and facilitate the payment of transfer duty to SARS.

Lodging the Transfer with the Deeds Office

Once all documents are signed and in order, your conveyancing attorney will lodge the transfer at the Deeds Office. This is a critical step where the property's ownership is officially transferred from the transferor to the transferee.

Registration and Handover

Once the Deeds Office has processed the transfer, the property is registered in your name. The final step involves handing over the property, which includes the physical transfer of keys and possession.

Benefits of Professional Conveyancing Services

Enlisting the services of an experienced conveyancing attorney offers numerous advantages for South African homebuyers:

• Expertise: A skilled attorney understands the legal nuances and potential pitfalls of property transactions.
• Due Diligence: Thorough property searches minimize the risk of future disputes or complications.
• Compliance: Attorneys ensure compliance with FICA and other legal requirements.
• Negotiation: Attorneys advocate for your interests during the negotiation and drafting stages.
• Peace of Mind: Professional guidance reduces stress and uncertainty throughout the process.

Conveyancing may seem daunting, but with the right legal support, the process can be navigated smoothly. By following this step-by-step guide and using the expertise of a qualified conveyancing attorney, South African homebuyers can embark on their property ownership journey with confidence and clarity.

Remember, conveyancing is a complex legal process, and this guide provides an overview. For personalized guidance and assistance tailored to your specific situation, it's advisable to consult a reputable conveyancing attorney who can address your unique needs and ensure a successful property transaction.

Cornell Horn Attorneys – Conveyancing Attorneys Cape Town

At Cornell Horn Attorneys in Cape Town, we specialize in conveyancing services that are tailored to your needs. Contact us today to discover how we can provide you with expert conveyancing services.