What is conveyancing?
Conveyancing is the legal process whereby a person becomes the lawful owner of a fixed property. This involves a chain of steps the first of which begins with a Deed of Sale and ends with the registration in the Deeds Office. The Seller and the Purchaser will be required to sign documents which have been prepared by the conveyancer.
What are the costs involved?
Transfer Duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way. For the purpose of Transfer Duty, property means land and fixtures and includes real rights in land, rights to minerals, a share or interest in a “residential property company” or a share in a share-block company. SARS Transfer Duty
|VALUE OF PROPERTY (Rand)||RATE|
|0 – 900 000||0%|
|900 001 – 1 250 000||3% of the value above R900 000|
|1 250 001 – 1 750 000||R10 500 + 6% of the value above R 1 250 000|
|1 750 001 – 2 250 000||R40 500 + 8% of the value above R 1 750 000|
|2 250 001 – 10 000 000||R80 500 +11% of the value above R2 250 000|
|10 000 001 and above||R933 000 + 13% of the value above R10 000 000|
Rate Clearance Figures
The rates of a property forms part of the municipal rates and taxes account which relates to the property that is being sold. These rates are money due to the specific municipality in which the property falls. The amount is calculated by the municipality and is payable before lodgement of the transfer can take place. The payment of the rates could be divided between the purchaser and the seller, depending on the date of occupation as well as the stipulations in the deed of sale.
The Conveyancer's fee
The fee that a Conveyancer is allowed to charge depends on the purchase price of the property. It differs with every transaction.