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Legal fees will be an important part of your home-buying budget. It is a good idea not to think of them as a grudge expense, but rather see them as essential to becoming a homeowner. With the appropriate attorneys involved, your property purchase will run smoothly and once the property registers in your name, you will have the satisfaction - and peace of mind! - of knowing everything was done properly.
The conveyancing process
Once the bank has granted your home loan and you have accepted, the bond and property can be registered in your name. This process is called conveyancing and usually involves three types of attorneys, although this will vary depending on the individual circumstances of the people or ('parties') who form part of your transaction:
There are a few exceptions, but usually the bank that grants your home loan will instruct attorneys from their preferred panel to handle registration of your bond and property into your name. The attorneys on the banks' panels are carefully vetted and their levels of service closely monitored, so you can expect to be in good hands.
Broadly speaking, this is what you can expect from the conveyancing process:
Original documents required
Different documents will be required as part of the conveyancing process, depending on whether the home loan and property will be registered in your name, jointly with someone else, or in the name of what is known as a 'juristic entity' (a company, close corporation, trust or partnership).
Documents that form part of the conveyancing process are required by the South African Financial Intelligence Control Act (FICA) and you need to provide original documents to the attorneys. They will make copies and certify each document.
Over and above the FICA requirements, other documents and information will also need to be supplied, depending on your personal circumstances and those of the seller. This includes the original Offer to Purchase and the future address of the seller.
Money changing hands
You might wonder when money changes hands as part of the home-buying process. The bulk of it happens once registration has taken place.
Congratulations! You are a homeowner. Get ready to enjoy many happy years in your new home. It's time to bond
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