One of the most frequently asked questions is why, if the purchaser of the property is paying the conveyancing attorney, the seller has the prerogative to appoint the conveyancer?
Our common law determines that a seller is the party entitled to nominate who the transferring attorney must be in the transaction as the seller is far more at risk than the purchaser. As the transfer costs payable by the purchaser are insignificant in comparison to the property’s value, therefore it is important that the seller keeps control.
A prime example is when the purchaser takes occupation of the property before the transfer and pays occupational rent that is much lower than his or her bond repayment. It is then in the purchaser’s interest to delay the transfer as long as possible within the time period before South African Revenue Services charges before SARS charges penalty interest on the transfer duty payable.
In short, it is the seller, as the owner of the property to be transferred, who stands to lose more and therefore has a stronger claim to the appointment of the conveyancer.
It is the transferring attorney’s duty to ensure that the purchase price is secured. The seller generally feels more “protected” by his attorney managing these important elements and receipt of the purchase price.
Should the seller not have his or her own attorney, the estate agent is allowed to recommend a conveyancer. The seller should always check the conveyancer’s track record, reputability and efficiency.
It must be borne in mind for the purchaser that all conveyancers’ fees are the same as they are prescribed and regulated by the law societies of South Africa. Where costs differ is the disbursements charged by firms, as this depends on their service providers.
It is advisable to select a conveyancer who is well-versed in the property transfer procedure to ensure that they are able to efficiently combat any serious issues which may arise during the transfer. Conveyancers should provide a fully comprehensive service to both parties, and know the ins and outs of the transfer procedure, to provide beneficial support and advice, as well as to ensure that the transfer procedure is completed in a timeous manner.
Velile Tinto Cape conveyancing attorneys have extensive experience and guarantee a smooth sale process.
Contact us for more information about our conveyancing services.
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