Conveyancing fees are calculated based on the purchase price of your home. The fees increase as the bond value increases. Conveyancing costs are one of the costs connected with buying a home in South Africa. These fees are unique from transfer duty, and it is vital to investigate and understand the conveyancing costs when buying and selling property.
What are the conveyancing fees?
Conveyancing is the process of transferring property ownership from one person to another, or from one person to a corporation or trust, and conveyancing costs are fees paid by the buyer to the attorney or lawyer who handles this legal procedure. These are the additional expenditures associated with acquiring a home
Even though there are no regulated costs that conveyancing attorneys must charge, most conveyancing attorneys follow some standards to guarantee that they are not grossly over- or under-charging a buyer. The Law Society of South Africa publishes and updates its conveyancing fee recommendations on a yearly basis. The most recent updated guideline was issued in May 2022.
The Law Society of South Africa (LSSA) has published its most recent Conveyancing Fees Guidelines.
|Value of Property or Bond||Recommended Guideline|
|= R100 000/R5 710.|
|Over R100 000, up to and including R500 000,||plus R910 per 50 000 or part thereof, above that.|
|Over R500 000, up to and including R1 000||000, plus R1 760 per R100 000 or part thereof above that.|
|Over R1 000 000, up to and including R5 000 000,||plus R1 760 per R200 000 or part thereof above that.|
|Over R5 000 000, up to and including||R5 000 000, plus R4 440 per R1 000 000 or part thereof above that.|
What services do conveyancers offer?
The conveyancer will make sure that all legal requirements are met by the Deed of Sale.
- Once the sale has been filed with the Deeds Office, they will also compile and produce all the supporting documents required to complete the registration of the sale.
- They will ask for information from the seller’s bank, including title deeds, information about the home loan, and cancellation figures, as well as a Rates Clearance Certificate from the municipality.
- A few documents will also need to be written by them. One of these is a Power of Attorney to Pass Transfer, which the seller must sign before they can transfer ownership of the property.
- The conveyancers must submit a declaration of marital status and solvency on behalf of both parties, including a record of their respective social security numbers.
Transfer duty vs. conveyancing fees
Conveyancing fees are different from transfer duty, which is a tax charged on the value of any property acquired by any person through a transaction or in any other way. Transfer duty is exempt for sales of less than R1 million until March 2021, when it becomes a sliding scale. (Ooba, n.d.)
Who pays the conveyancing fees?
Although the conveyancing attorney is appointed by the seller, the purchaser is responsible for the fees. Conveyancing fees are based on a sliding scale based on the purchase price.
How do I find a conveyancer?
There are many different law firms that provide conveyancing services, so you should have plenty of options. If you have previously purchased a house, you may like to use the same conveyancer, but others may seek referrals from family and friends or even their estate agent. If you do ask your estate agent, make sure they are compensated for the referral. You can also find a conveyancer via the website of the Council for Licensed Conveyancers, the industry’s governing authority. Some price comparison websites also allow you to compare prices for conveyancers in your region, similar to how you could receive an estimate for a car.
What if I decide to not go ahead with buying a house?
Some legal firms will offer a “no completion, no fee” clause when you sign with them. However, even in that case, there may be some expenses to pay to the firm, such as if they have already performed land searches and bankruptcy checks.
Unpack: How much does a Conveyancer Cost in South Africa | Unpack – Property. (2020, December 17). unpack.co.za. , from https://unpack.co.za/how-much-does-a-conveyancer-cost/
ooba: Conveyancing fees in 2022: This is what you’re paying for. (n.d.). www.ooba.co.za. , from https://www.ooba.co.za/resources/conveyancing-fees/
(2022, August 12). Adams & Adams: Transfer and Conveyancing Fees in South Africa – Adams & Adams. www.adams.africa. , from https://www.adams.africa/trending-topics/transfer-and-conveyancing-fees-in-south-africa/
Conveyancing Fees Explained – NerdWallet: Conveyancing Fees Explained – NerdWallet. www.nerdwallet.com, www.nerdwallet.com/uk/mortgages/what-are-conveyancing-fees