Understanding the Role of Deeds Offices in South African Property Transactions

Understanding the Role of Deeds Offices in South African Property Transactions

Podcast

Understanding the Role of Deeds Offices in South African Property Transactions

Podcast

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Kirsty explained that when a property is purchased with a bond, two legal teams are often involved: one for the seller (as selected by the seller) and one for the purchaser if financing is required (selected by the bank). If the purchase is cash-based, only one attorney handles the transfer. Banks work with specific Bond attorneys who are their appointed conveyancers (attorneys) for bond registration purposes on the specific bank panel. These attorneys use secure platforms to share sensitive documents with banks.

Kirsty noted that the seller usually chooses the transfer attorney, while the bank assigns the bond attorney from its approved panel. This often leads to two separate attorneys being involved in the transaction.

Kirsty emphasised that it’s impossible for buyers or sellers to manage property transfers themselves due to the complexity of the process, which includes dealing with SARS, municipalities, homeowner associations, and other various entities. The legal risks and the need for expertise in property law make professional involvement essential.

Kirsty also mentioned that bond registration fees are not covered by the bank, as they involve separate entities. In the past, banks offered 105% or 106% bonds to cover additional fees, but this practice has stopped. Consequently, buyers must pay attorneys directly for bond registration and transfer registration costs as well as the associated disbursements thereon.