FAQ’s

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Frequently asked questions

What is the difference between transfer duty and transfer fees?
Transfer Duty is the tax that the Government levies on property transactions which is paid by you when you buy a property to be transferred into your name. Transfer Duty is charged on a scale depending on the price and/or value of the property.
 
Transfer Fees on the other hand are the fees payable to an Attorney for the transfer process.  These fees usually include amounts which are payable to the Receiver of Revenue, Municipality, Home Owners Association, Correspondent, Deeds Office and so forth.  Even if a transaction does not attract Transfer Duty, Transfer Fees will almost always be payable.
How does estate agent’s commission work?

Commission rates are calculated as a % of the gross purchase price and should be negotiated upfront with the agent.  Sellers need to establish very clearly what commission an agent proposes to charge before awarding a mandate and to ensure that the % agreed upon after any negotiation is written into the mandate document (where applicable) and also establish whether such % agreed upon includes VAT.

Who appoints the conveyancer to attend to the property transfer?
It is the privilege of the Seller to appoint the Conveyancing Attorneys that will attend to the registration of the transfer, however, a Purchaser may also request the use of a certain Attorney Firm and may the parties by agreement make use of that firm.
 
It is however imperative to ensure that you are dealing with specialists in the field of Conveyancing and that your interest is protected by the Conveyancing Attorney.
What is a conveyancer?
Only an Attorney who write and pass an additional examination can be admitted as a Conveyancer in the High Court.  It is important to have a sound knowledge of the Conveyancing process in all aspects to ensure professional service.
 
Jan Visser Attorneys at present has 3 in-house Conveyancers who are ready to assist you.
When will VAT be applicable and when will transfer duty be applicable on a property transaction?
The subject of VAT is complex and the information supplied is only intended as a guide and is not comprehensive.  Always seek professional advice before committing yourself or your client to a purchase or sale of immovable property where there is a possibility of VAT implications.
 
A property transaction will attract VAT if the Seller is a registered VAT vendor. If the property was utilised for the generating of income, a zero rate may apply in certain circumstances.
 
If a property transaction does not attract VAT, Transfer Duty will apply. 
 
There are various exemptions and exempted entities who will not be liable to pay Transfer Duty or VAT in certain circumstances.
Which factors generally can cause delays in the conveyancing process of transfers?

Various factors can cause delays, e.g. the municipality requiring additional documentation and/or funds when rates clearance is applied for; either party delaying payment of the required funds; the tax affairs of either party not being up to date.  The funding of rates, levies, transfer duty and VAT is critical.  Finance needs to be readily available from the appropriate party, on demand, to prevent delays.

What about fixtures and fittings?

Normally, if these are permanent in nature, these will remain on the property and form part of the purchase price.  Any items in doubt, such as a TV aerial,  chandelier, garden wendy house and pool cleaning equipment, should be referred to in the agreement of sale as a fixture which should remain and that is in working condition on date of registration.

What to be aware of for a new residential property under construction?

When buying a new home which still has to be completed, draft specifications with the builder for the completion of the house and attach it to the sale agreement.  Insert a special clause which states that the seller undertakes to complete the dwelling in accordance with the specification and local building by-laws, and furthermore, that the seller undertakes to complete the dwelling for occupation on or before a specified date.  In addition, ensure that the builder is registered with the National Home Builder Registration Council (NHBRC).

Should you have any other questions, not only in property law but any other field of law, do not hesitate to contact us for tailor-made advice:

JAN VISSER ATTORNEYS
Tel: 042-293 3333/5
Fax: 042-293 3334

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