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Costs to Consider

CONVEYANCING NOTES and EXPLANATION:

CONVEYANCING: CONVENTIONAL DEEDS (ACT 47/1937) GUIDELINE OF FEES CPI Reference: January 2017

Conveyancing fees are negotiable. These are merely guidelines and not minimum or maximum fees.

1. GENERAL NOTES:

The fees recommended in this guideline are in respect of and include inter alia the general conveyancing duties performed by a conveyancer for procuring the due and proper execution and registration of the relevant deed or document, or the filing thereof or cancellation thereof, as the case may be, as well as the responsibility placed on him for the accuracy of the facts mentioned in deeds or documents or which are relevant in connection with the registration or filing thereof as contemplated in section 15A of the Deeds Registries Act, Act 47 of 1937 (“the Act”), as amended; for ensuring that copies of any deeds and documents are identical as at the date of lodgement, that all applicable conditions of title are correctly brought forward in any deed of transfer or certificate of title, that any person signing a document as principal or representative has been appointed and is acting in accordance within the powers granted to him and that any security required has been furnished to the Master, that parties to deeds are correctly reflected, that the necessary authority has been obtained for the signing of any document in a representative capacity, that the transaction in question is authorised by and in accordance with the constitution, regulations or founding statement or trust instrument of a trust, as the case may be, of any church, association, close corporation, society, trust or other body of persons, or any institution (whether created by statute or otherwise) being a party to such document, where applicable, that the relevant particulars in the deed have been correctly brought forward from the power of attorney, as contemplated in Regulation 44A of the Deeds Regulations; and for this purpose shall include the taking and giving of instructions, all correspondence, including the perusal of completed deeds of sale; the preparation and attendance on signature of all powers of attorney, declarations, affidavits, resolutions, status affidavits, company certificates, exchange control certificates, certificates in terms of section 20 of the Alienation of Land Act 68/1981 and other necessary preliminary and ancillary documents as well as attendances in connection with the obtaining, preparation and signature of documents to ensure compliance with the provisions of the Financial Intelligence Centre Act and the signature of ancillary documents required by a mortgagee in terms of the National Credit Act; the payment of transfer duty or VAT and of all rates levied by any lawful authority, the obtaining and making of all clearance and other certificates; including attendances or consultation with an outside agent to obtain clearance certificates; the perusal of memoranda and articles of association and trust deeds, the making of all necessary financial arrangements, including the issuing of guarantees on behalf of bondholders or the provision and checking 2 of guarantees and attending payment in terms thereof; the drawing and preparation of any document, including all copies thereof, required for execution or registration at a deeds registry and the obtaining of registration thereof, arranging simultaneous lodgement and registration with another conveyancer or other conveyancers, where necessary; the giving of all references required by the deeds registry for examination purposes; and all attendances at the deeds registry, but shall not include —

  • 1.1 any attendance in connection with the drawing and execution of deeds of sale, deeds of donation, deeds of exchange, preliminary partition agreements, deeds of suretyship and acknowledgements of debt and documents of a similar nature;
  • 1.2 any separate act of registration of any other document which may be necessary before or in connection with the first-mentioned act of registration;
  • 1.3 any attendance in connection with the resolution of a dispute between the transferor and the transferee arising from a deed of sale or any of the other documents referred to in 1.1 above or from whatsoever cause;
  • 1.4 any attendance arising from negotiations between the parties, resulting in a further agreement or addendum or amendment to an existing agreement;
  • 1.5 any consultation for the purpose of drafting a marriage contract;
  • 1.6 any attendance or consultation, in addition to taking instructions, relating to the opening of a township register in terms of Section 46 of the Act; or incisions or excisions;
  • 1.7 any attendance in connection with the preparation and obtaining of documents relating to collateral security required by a mortgagee;
  • 1.8 any attendance on the issue of additional letters of undertaking and guarantees (other than in favour of or for bond holders, the seller or transferring attorney or undertakings for cancellation/release of bond costs in favour of the bond cancellation attorney). Suggested fee R640 per undertaking / guarantee;
  • 1.9 any attendance on investments in trust in terms of Section 78 (2A) of the Attorneys Act of 1979. Recommended fee R640 per investment, alternatively a fee based on the amount and duration of the investment;
  • 1.10 Any attendance or disbursement paid to a computer software supplier for purposes of receiving or drafting instructions electronically; 3
  • 1.11 Any attendance or consultation with an outside agent to attend to municipal refunds and reconciliations on behalf of client. Suggested fee R425. The aforegoing fee excludes the fee payable to the outside agent;
  • 1.12 Any formal certification to any linked attorney or third party of material facts relating to the transaction but beyond what is required for registration of the transaction itself and which certification a conveyancer may, but is not obliged to furnish (such as certification of the sale price, no conditions or servitudes that adversely affect the value of the property or the security of a mortgage bond, the disposal not forming a major part of seller’s assets, or compliance with specific sections of the Companies Act, Insolvency Act or any other Act) and that places the conveyancer at professional risk: A fee of R1070 per certification or a fee assessed according to the perceived risk and/or complexity thereof is recommended, payable by the requesting attorney or party.

NOTE: It is recommended that additional charges and disbursements discussed above in 1.1 to 1.12 be agreed upon in advance with the client. 

TRANSFER DUTY COSTS

There is no Transfer Duty on property under R900 000

From 900 001 to R1 250 000, transfer duty is calculated at 3% of the value above R900 001. (You don't pay transfer duty on the first R900 000)

From R 1 250 001 to R 1 750 000, Transfer Duty is calculated at 6% on the value above R 1 250 000.00 PLUS a flat rate of R 10 500

From R 1 750 001 to R 2 250 000 , Transfer Duty is calculated at 8% on the value above R 1 750 000, PLUS a flat rate of R 40 500.

From R 2 250 001 to R10 000 000, Transfer Duty is calculated at 11% of the value above R 2 250 000 PLUS R 80 500.

From R 10 000 001 and above, Transfer Duty is calculated at 13% of the value exceeding R10 000 000 Plus R933 000.

No transfer duty is payable if the transaction is subject to VAT.

BOND RAISING FEES

What is a bond raising fee?

 

A bond raising fee is a fee charged by the bank to raise bond finance over a property. It is a once off fee charged by the bank to open the facility. Each financial institution has its own variables for the percentage that they charge, however many buyers don’t know or don’t take advantage of the fact that the fee can be negotiated. This is one of the reasons that it is important to ‘shop’ for a bond before choosing a lender. On the commercial and industrial level, even a half a percent can save you thousands of rands. We deal with a few banks that would welcome the opportunity to quote you on a bond facility. 

Ooba, our bond consultants are the best people to give advice - Ask your agent to put you in contact with an Ooba Consultant who will give you clear insight into what is involved in both the bond application process and the potential fees involved.