What attorneys do for a homebuyer

Legal fees will be an important part of your homebuying budget. It is a good idea not to think of them as a grudge expense, but rather see them as essential for going from homebuyer to homeowner. With the appropriate attorneys involved, your property purchase will run smoothly. Once the property registers in your name, you will have the satisfaction – and peace of mind! – of knowing everything is correct.

The conveyancing process

When the bank grants your home loan and you accept it, 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:

Bond attorneys
Cancellation attorneys
Transfer attorneys

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 banks' panels carefully vet the attorneys and closely monitor their levels of service, so you can expect to be in good hands.

Broadly speaking, this is what you can expect from the conveyancing process:

The bank instructs the bond attorneys.
The transfer attorneys obtain a copy of the signed Offer to Purchase (OTP), the necessary compliance certificates (usually electrical, gas and beetle), the Title Deed and the cancellation figures (if the seller has a bond over the property).
The bond attorneys will advise the transfer attorneys of the amount available for guarantees.
The transfer attorneys will advise the cancellation attorneys to cancel the seller's bond, if applicable.
The bond attorneys will provide guarantees to the transfer attorneys.
The transfer attorneys will pay the rates and levies on the transfer duty, if applicable.
The seller will sign the transfer documents and pay the costs. You will sign your bond and transfer documents.
The transfer attorneys will send a draft Title Deed to the bond attorneys. They prepare the bond documents and lodge them with the Deeds Office.
The Deeds Office will examine the documents to make sure everything is in order.
The Deeds Office will register the property in your name and cancel the seller's bond.

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).

The South African Financial Intelligence Control Act (FICA) will require documents that form part of the conveyancing process and you need to provide original documents to the attorneys. They will make copies and certify each document.

Over and above the FICA requirements, you'll also need to supply other documents and information, 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:

The bond attorneys will inform the bank and you, as the buyer, that registration has taken place.
The bank will pay out the proceeds of your bond and the transfer attorneys will finalise the finances.
Your estate agent (if applicable) will get their commission and the seller will get the money for the house.
You will start paying off your home loan with the bank.

Congratulations! You are a homeowner. Get ready to enjoy many happy years in your new home. It's time to bond!

Get started

Homebuyers guide

Preparing to buy a home

Finding the perfect home

Making an offer

Getting a bond

Owning it

Property Brief