Having the right attorney by your side during a property sales transaction can help to shorten and smooth an often complex process. During the property transfer and registration process, you'll typically work with three different conveyancers: a bond attorney, a bond cancellation attorney, and the transfer attorney. This article provides some guidelines for selecting the right transfer attorney.
Bond (registration) attorney
The buyer's bank selects the bond attorney who represents the bank or financial institution that has granted the finance. The bond attorney handles the registration of the bond over the specified property, and which happens simultaneously with the transfer of the property from the seller’s into the buyer’s name.
Bond cancellation attorney
When you sell a property, and have an amount outstanding on your bond, that home loan will have to be cancelled. This will only happen once the outstanding bond amount is either paid in full or guaranteed* by the sale and when the bank has completed all the necessary paperwork. Then, the bank holding the bond will instruct a bond cancellation attorney to terminate or cancel your bond.
*A guarantee is an official document provided by an authorised financial institution, ensuring payment of a designated sum upon the transfer's registration.
Transfer attorney
It's important to choose the right transfer attorney to act on your behalf when you sell your property. They play a vital role in protecting your interests and ensuring that the process of transferring your property runs smoothly.
In terms of South Africa’s common law, which recognises that in a property transaction, the risk is greater for the seller, the seller usually chooses the transfer attorney. However, this does not stop the parties from agreeing that the purchaser can nominate the transfer attorney. This is then included in their offer to purchase.
The transfer attorney then handles the transfer of the property from your name into the new buyer’s name. They will also coordinate with both the bond registration and cancellation attorneys to ensure that all processes lodge at the deeds office - at the same time.
How to choose the right transfer attorney
Here is a list of points to look at when you select your transfer attorney:
- Check their qualifications: Remember, that to manage a change of property ownership, a transfer attorney must also be a qualified conveyancer. It's important to note that not every attorney is a conveyancer, who must pass a conveyancing examination, and you can find out about local conveyancers via the regional office of the Legal Practice Council.
- Consider the location: In the transfer process, you will have to sign documents in person at your attorney’s office. If you choose an attorney who is far away, it could result in additional conveyancing fees, which may not be in your budget.
- Ask your RE/MAX agent for a referral: The best way to find reputable and specialised conveyancing firms in your area, is to ask the estate agent who has marketed your property. Although real estate agencies may suggest using a particular attorney, as the seller, the final decision remains with you. The estate agents' code of conduct specifically does not allow them to make the decision for you. Alternatively, you can reach out to the Law Society in your province or the Legal Practice Council and ask for a list of conveyancing attorneys for your specific area.
- Take experience into account: Because conveyancing is complex and demands specialist knowledge, it's wise to choose an attorney who is well-versed in the property transfer process. This means that opting for an attorney from a conveyancing firm that regularly deals with property transfers is your best bet. Word to the wise: the transfer attorney's legal fees are determined by the property's value, not their conveyancing experience. Therefore, it's sensible to utilise an attorney specialising in property transfers.
- Reputation counts: Buying and selling a property involves significant financial transactions and an intricate series of requirements for property transfers, so it's wise to align yourself with a transfer attorney who is reputable and well-established. Look at client reviews on Google Business, social media, or Hellopeter to help you determine the reputation of conveyancing attorneys.
A final word
Selecting the right attorney is an important part of the property transfer process. It's imperative that you, as the seller, feel comfortable with, and trust your transfer attorney. Working with an experienced, local attorney will ensure that the process is as quick and easy as possible.
Don't hesitate to contact your nearest RE/MAX office for guidance on selecting the right transfer attorney to navigate the entire property hunting process.
Have more unanswered questions? Here are some related questions – and answers
How long does a transfer of property take in South Africa?
If everything goes as planned, the transfer process should take two to three months. However, it can be delayed if certain conditions of the sale still need to be fulfilled or if documentation and certificates are not in order.
How long do you have to pay transfer fees?
The transfer fees are payable upfront before transfer can go through, but in some cases, a buyer can arrange to pay the transfer duty within six months from the conclusion of the deed of sale.
