The conveyancing fee is one of several costs \u2013 above and beyond the purchase price \u2013 that buyers need to budget for when making a property purchase.<\/p>\n
Typically appointed by the seller, but paid for by the purchaser, conveyancers are an essential part of every property transaction, but what is it that they do, and how much value do they add for the buyer and the seller?<\/p>\n
\u201cSimply put, conveyancing is the process of transferring legal ownership of fixed property from one person \u2013 or a company or trust \u2013 to another,\u201d said Bill Rawson, chairman of the Rawson Property Group.<\/p>\n
\u201cIt involves taking the Deed of Sale, ensuring it meets all the legal requirements, and then requesting and collecting supporting information and drafting all the necessary documentation to be lodged with the Deeds Office to finalise the registration of the sale.\u201d<\/p>\n
The information the conveyancer will need to collect includes, the mortgage bond, cancellation figures and Title Deeds from the seller\u2019s bank, if applicable, compliance certificates from the seller, and the amounts from the municipality for a Rates Clearance Certificate on the property in question.<\/p>\n
Documents to be drafted include a \u201cPower of Attorney to Pass Transfer\u201d for the seller to sign (giving permission for the conveyancer to transfer registered ownership of the property on the seller\u2019s behalf) and a declaration in respect of Marital Status, Identity Number and Insolvency for both the seller and purchaser (confirming the details and solvency of all parties involved).<\/p>\n
In addition to this, a declaration for Transfer Duty or VAT needs to be prepared and signed, along with bond registration documentation for the purchaser, if necessary.<\/p>\n
\u201cIt can be a time-consuming and complicated process,\u201d said Rawson, \u201cand requires a lot of specialist knowledge and extraordinary accuracy \u2013 particularly in less straightforward transactions that include things like subdivision or consolidation of properties, or the registration of servitudes.<\/p>\n
Because of this, only an attorney who has undergone further qualification by passing the national conveyancing examination is allowed to perform these services, and no property sale can be concluded without having a qualified conveyancer on board.\u201d<\/p>\n
The reason for these strict rules, according to Rawson, is to protect the rights of both the buyer and seller during what is often one of the most high-value transactions they will make in their lifetimes.<\/p>\n
\u201cProperty ownership is also something that is taken very seriously by the government, and it\u2019s vital that we retain a high standard of land registration,\u201d he said.<\/p>\n
Since having a conveyancer is a legal requirement for a sale, it makes sense that conveyancing fees are also regulated by law, but it\u2019s somewhat less logical that those fees are almost always paid by the purchaser without negotiation.<\/p>\n
\u201cConveyancers are traditionally appointed by the seller,\u201d said Rawson, \u201clargely because the seller is at greater risk during the transaction, and stands to lose more if things go wrong. The fact that the fees are normally covered by the purchaser is simply a matter of convention. Neither of these things is set in stone, however, and you can always negotiate a different arrangement in your agreement of sale.\u201d<\/p>\n
Regardless of the expense, conveyancers perform an undeniably vital function in the property sales process, but their value extends beyond simply fulfilling a legal requirement.<\/p>\n
\u201cWithout a conveyancer, buying or selling a property would be an intimidatingly complex process,\u201d said Rawson, \u201cbut thanks to their expertise, most sales run like a well-oiled machine. You may not have choice about appointing them, but that doesn\u2019t mean they don\u2019t earn their dues. A good conveyancer is worth their weight in gold.\u201d<\/p>\n
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