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Conveyancing

The Conveyancing System in South Africa

The term conveyancing is defined as the legal process by which the lawful transfer of ownership of immovable property is obtained.

In South Africa, the Deed’s Registries Act 47 of 1937 is the main piece of legislation that establishes and regulates the conveyancing process.

The conveyancing process can seem daunting on the outset. However, this page is aimed at explaining the basic process to help you become more acquainted with the process.

Key Aspects of the Conveyancing System:

1. Role of a Conveyancer

A conveyancer is a specialized attorney who is legally required to handle property transfers.
Only a qualified conveyancer can register the property transfer at the Deeds Office.

2. The Deeds Office System

South Africa follows a deeds registration system, which means property ownership is only legally valid once registered at the Deeds Office.
This system ensures that ownership records are transparent and protected against fraud.

3. Transfer Process

Step 1: Sale Agreement

The buyer and seller sign a sale agreement, which includes terms of the sale, price, and conditions.
This agreement is legally binding once signed by both parties.

Step 2: Appointment of Conveyancer

The seller usually appoints the conveyancer, but in some cases, the buyer may negotiate to use their own.
The conveyancer is responsible for managing the entire transfer process.

Step 3: Compliance & Clearance Certificates

The seller must obtain clearance certificates, including: Rates clearance certificate (confirms all municipal rates are paid).
Electrical compliance certificate (ensures wiring meets safety standards). Beetle certificate (for coastal properties, confirming no wood borer infestation).

Step 4: Lodgement at the Deeds Office

The conveyancer prepares and submits transfer documents to the Deeds Office for verification.
The Deeds Office examines the documents and, if everything is in order, registers the transfer.

Step 5: Payment & Registration

The buyer must pay transfer duties (if applicable) to SARS before registration.
Once registration is complete, the buyer officially becomes the new legal owner.

Costs Involved in Property Transfer

01.

Transfer Duty

A tax paid to SARS on property purchases over R1,100,000 (unless exempt).

02.

Conveyancer’s Fees

Paid by the buyer for legal services.

03.

Deeds Office Fees

Charged for registering the property.

04.

Bond Registration Costs

If the buyer is financing the property with a mortgage.