Conveyancing

transactions
LU 5: CHAPTER 15
 Theory of conveyancing

Understand and explain

the concepts relating to
transfer of property

LU 5
Record in the general
ledger in the books of
the conveyancing
attorney
Recording transactions
relating to transfer of
property
Theory of conveyancing
Process of transfer of immovable property from one person to another

Registered at the Deeds office

Read in the textbook introduction section (page 261) about the 3 different kinds of attorneys
involved in the process

Parties involved: seller & purchaser

Please ensure that you understand all the concepts on page 63 of the workbook. Please ask me if
there is a concept that you don’t understand!
 1. Valid agreement of sale – seller signs the purchaser’s offer to purchase

2. Purchaser pays deposit of the purchase price to the conveyancer (to be held in trust pending
the transfer)

3. The deposit could be invested in an interest-bearing account

4. Balance of purchase price normally paid by a loan from the bank (the bank registers a
mortgage bond over the property as security)

The
5. Bank issues a guarantee to the conveyancer that the loan will be paid upon transfer

6. Purchaser is responsible for transfer costs (exception is that seller is liable for estate agent

conveyancing 7.
commission), normally this is paid as an estimate to the conveyancer

Conveyancer pays these expenses on behalf of purchaser: example transfer duty to SARS,

process 8.
rates certificate

Conveyancer prepares transfer documents, lodges them at Deeds office

9. Transfer is registered, purchaser becomes legal owner

10. In case of bond – paid out to the conveyancer upon registration

11. Conveyancer pays purchase price out to seller, or to anyone else as instructed by the seller

12. Also conveyancer charges his fees

 We are NOT doing VAT in this LU.

Transfer You are required to be able to work out

duties & transfer duties as per the table on
page 262 (if applicable, the table will

VAT be provided in the exam)

Refer to the example on page 262

Recording of transactions
Work through the example on page 263

- not the easiest example to work through, keep a close eye on the dates!!!

Take note of the steps in the workbook page 65 and 66

Make sure you understand the 7 – 10 day rule to allow cheques to clear (section 15.6 in the
textbook page 268)