select
|

Property Buying Advice: Selecting the right attorney for transfer

Working with the right attorney during a property sales transaction can make all the difference to how long and cumbersome the process can be, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

He explains that during the property transfer and registration process, there are usually three different conveyancers involved – a bond attorney, bond cancellation attorney and the transferring attorney. Goslett says that the bond attorney represents the bank or financial institution that is issuing the finance to the purchaser. Their role would be to handle the registration of the bond in favour of the mortgagee over the specified property, which occurs at the same time as transfer.

“In the instance where the seller of the property currently has an outstanding bond, the bank holding the bond would instruct a bond cancellation attorney to attend to its termination. This occurs once guarantees have been provided for the outstanding bond amount on the property and all the necessary documentation has been completed by the bank,” says Goslett.

He adds that although it is generally the appropriate bank that will appoint both of these attorneys, in most cases it is the seller who gets to appoint the transferring attorney. The attorney who is appointed will be tasked with handling the transfer of the property from the seller’s name into the new buyer’s name. They will also be responsible for co-ordinating the registration process with the other two attorneys to ensure that all processes register at the same time with the deeds office. “It is important that sellers choose the right attorney to act as the transferring attorney, as they play a vital role in protecting the seller’s interests and ensuring the process runs smoothly,” says Goslett.

He notes that while there are real estate companies that want the seller to use a certain attorney, it is entirely up to the seller as to who they decide to use. “There have been cases where agencies have forced their clients to make use of attorneys that are situated more than 100km away from both the buyer and seller’s physical address. As per the Estate Agents Affairs Board code of conduct, an agent is not permitted to force a seller to use a specific attorney firm.  The other issue is that the buyer and seller are required to sign documentation at the attorney’s office, so it would be unfair to appoint an attorney that is hundreds of kilometres away from where they are staying.  When an out-of-town attorney is appointed, they then have to appoint a local attorney for the signing of the documentation. This logistical issue and cost can be avoided by appointing a local attorney firm,” advises Goslett.

He adds that due to the fact that conveyancing is a complex series of tasks that requires specific conveyancing knowledge; it is advisable to select an attorney who is well-versed with the property transfer process. “It is best to appoint an attorney from a conveyancing firm that handles property transfers on a daily basis. The legal fees charged by the transfer attorney are based on the value of the property, not their experience with regard to conveyancing - therefore it makes sense to use an attorney that specialises in property transfers,” says Goslett. 

If everything goes as it should, the transfer process should take between two and three months to be finalised. The process can be delayed if there are certain conditions of the sale that still need to be fulfilled or if documentation and certificates are not in order. Legislation requires the transferring attorney to acquire a rates clearance certificate from the local council. “Sellers are often required to pay a few months rates in advance in order to obtain their clearance certificate. Once the transfer is complete, any money that has been overpaid will be refunded to the seller,” says Goslett.

Selecting the right attorney is a crucial element to the property transfer process. It is imperative that the seller is comfortable with their choice and trusts their attorney. “Working with an experienced, local attorney will ensure that the process is as quick and easy as possible,” Goslett concludes.  


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK