Conveyancing is an essential process in South Africa, ensuring the legal transfer of property ownership from the seller to the buyer. This complex legal field requires specialised knowledge and is governed by a unique set of laws, practices, and regulations that protect both parties involved in a property transaction. Whether you’re a first-time homebuyer or a seasoned property investor, understanding conveyancing law can help streamline your transaction and reduce potential risks.

In this article, we will break down the essentials of conveyancing law in South Africa, including the role of the conveyancer, the conveyancing process, typical costs, and important legal considerations for buyers and sellers.

What is Conveyancing?

Conveyancing refers to the legal process of transferring ownership of immovable property, such as land or buildings, from one person or entity to another. It ensures that the transaction is legally valid and protects both parties by verifying that the property title is free from encumbrances (like liens or mortgages) and that all relevant laws are adhered to.

In South Africa, conveyancing is highly regulated, requiring the involvement of qualified professionals to guarantee the legality and security of each transaction.

The Role of the Conveyancer

A conveyancer is a specialised attorney responsible for managing and overseeing the transfer of property. In South Africa, only attorneys who have completed additional qualifications and examinations in conveyancing law may act as conveyancers. This requirement helps ensure that only highly trained professionals handle property transactions.

The conveyancer’s responsibilities include:

• Drafting and managing the deed of sale: The conveyancer ensures that the agreement accurately reflects the terms and conditions of the transaction.
• Conducting title searches: To confirm the property’s ownership and that it is free from claims or legal complications.
• Liaising with the Deeds Office: The conveyancer registers the new ownership with the Deeds Office, making the transaction official.
• Managing funds: In many cases, conveyancers oversee financial transfers, ensuring that payments (including deposits and transfer fees) are made correctly.

The Conveyancing Process in South Africa

1. Drafting and Signing the Sale Agreement
   The conveyancing process begins once the buyer and seller agree to the terms of the sale. A written agreement, known as the deed of sale, is prepared and signed by both parties. This document outlines the purchase price, deposit amount, payment terms, and any conditions of the sale.
2. Appointing a Conveyancer
   Typically, the seller appoints a conveyancer to handle the transfer, although it can also be a mutual decision. The appointed conveyancer then manages the legal aspects of the sale.
3. Title Deed and Bond Cancellation
   If the seller has a mortgage bond on the property, the bond must be canceled as part of the sale process. The conveyancer will handle the bond cancellation with the seller’s bank and obtain a cancellation figure to settle the mortgage.
4. Property Clearance Certificates
   Before transferring the title, the conveyancer must acquire a rates clearance certificate from the local municipality, confirming that there are no outstanding rates or municipal charges on the property. In some municipalities, sellers are also required to provide an electrical compliance certificate, as well as certificates for gas, water, and beetle inspections if applicable.
5. Transfer Duty and Tax Compliance
   The buyer is generally responsible for paying transfer duty, which is a tax levied on the property purchase. The conveyancer submits the transfer duty payment to SARS (the South African Revenue Service) and obtains a transfer duty receipt, required to complete the transfer.
6. Registration at the Deeds Office
   Once all documents are in order, the conveyancer lodges the paperwork at the Deeds Office. After a thorough review by the Deeds Office, the new ownership is registered, and the property officially transfers to the buyer.
7. Final Transfer of Ownership
   Upon successful registration, the title deed is updated to reflect the buyer as the new owner. The conveyancer will inform both parties once registration is complete, and the buyer gains full ownership rights to the property.