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 money that is paid to the South African Revenue Services.
Natural persons (this is private individuals) will pay 0.00% is on the first R500 000.00 of the purchase price, thereafter 5.00% is payable up to R1 million and thereafter 8.00%.
For Juristic persons (for example close corporations, companies or Trusts)
Rates (Clearance fees)
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.