Property law

The Conveyancing section of Adams & Adams handles all aspects relating to property and property law in South Africa. The section is based at our head office in Pretoria and provides a wide range of services to the firm’s private and corporate clients. The section’s electronic access to its clients, which includes the major South African banks, ensures that work is efficiently conducted.

Services provided

The services provided by the conveyancing department include:

• Negotiating and drafting of agreements relating to property transactions
• Conventional and sectional title transfer of properties
• Mortgage bonds and notarial bonds
• Sub-division and consolidation of properties
• Township and sectional title developments
• Various applications, consents and endorsements
• Notarial leases and servitudes
• Ante-nuptial contracts

Questions frequently asked by clients

What is the procedure to transfer a property?

• An “offer to purchase”, once signed by a purchaser and seller, is a deed of sale.
• The purchaser applies directly to a bank or through a mortgage originator for a bond.
• The conveyancer requests bond cancellation figures from the current bond holder and applies for the rates clearance figures from the local authority.
• The conveyancer drafts the documents (affidavits, transfer duty declarations, power of attorney to pass transfer and draft deed of transfer).
• Parties sign the transfer documents and pay the costs.
• The conveyancer pays the amount due to the local authority to obtain a rates clearance certificate.
• The necessary documents are submitted to the Receiver of Revenue to obtain a transfer duty receipt.
• Documents are lodged in the Deeds Office (simultaneously with the bond cancellation and bond documents) for examination; the documents will then come up on preparation and be registered thereafter.

How long will the transfer take?

Under ideal circumstances a transfer takes between 50 and 65 days. The following aspects influence the period to transfer a property:

• Is the purchaser paying cash for the property and are the funds available?
• Did the purchaser apply for mortgage finance?
• Does the purchaser qualify for the loan?
• Does the property have sufficient value according to the valuation conducted by the mortgagee’s valuator?
• Are there any restrictive conditions in the title deed?
• Can the mortgagor comply with the conditions of the bank?
• Is there a bond registered over the property that needs to be cancelled (cancellation figures must be furnished by the relevant mortgagee)?
• Are the security documents (title deeds and mortgage bonds) available?
• The period the local authority takes to issue rates clearance figures and the rates clearance certificate.
• The period it takes the Deeds Office to examine the transfer documents.

What are the costs to transfer a property?

• There should be a distinction between professional fees and disbursements made by the conveyancer on behalf of the parties.
• The professional fees charged by the conveyancer are in accordance with national guidelines prescribed by the Law Society of South Africa. This prescribed tariff makes provision for a sliding scale based on the purchase price of the property. The purchaser usually pays the professional fees, but the parties can contract otherwise.
• The conveyancer collects the following funds before registration from the seller and purchaser:

From the seller

• Amounts due to the local authority to obtain a rates clearance certificate.
• Bond cancellation costs (should there be insufficient funds from the proceeds of the sale to pay the bond cancellation attorney directly).

From the purchaser

• Deeds Office registration fees.
• Provision for rates and taxes due to the local authority.
• Transfer duty payable to the Receiver of Revenue.
• Professional fees

Transfer duty is currently calculated as follows based on the purchase price:

• Natural persons: 
  R0 to R500 000 – No transfer duty payable
  R501 000 to R1 000 000 – The first R500 000 of the purchase price is exempt. Transfer duty is payable at a rate of 5% on the remainder of the purchase price
  R1 000 001 and above – You pay R25 000 and you add 8% of the remainder of the purchase price over R1 000 001


• Legal entities (companies, close corporations and trusts):
  Flat rate of 8% of the purchase price