1. Misunderstanding the Conveyancing Process
Conveyancing involves multiple steps, from signing the offer to final registration. Misunderstanding the timelines, costs, and processes often leads to confusion and frustration for both parties.
Tip: Ensure clear communication with your conveyancer about the process, timeframes, and expectations.
2. Failure to Account for Costs
Many buyers are unaware of all the costs involved, such as:
- Transfer duty
- Conveyancing attorney fees
- Bond registration fees
- Rates clearance and municipal costs
- Tip: Request a full breakdown of costs upfront to avoid surprises.
3. Incomplete or Inaccurate Documentation
Missing or incorrect documents can delay the process. Common issues include:
- Incorrect identity documents
- Incomplete sale agreements
- Missing compliance certificates (electrical, plumbing, gas)
Tip: Double-check all documentation with your conveyancer before submission.
4. Delays in Receiving Compliance Certificates
In South Africa, sellers are responsible for providing compliance certificates (e.g., electrical, gas, water). Any delays in obtaining these certificates can postpone registration.
Tip: Sellers should apply for compliance inspections early in the process.
5. Municipal Clearance Certificate Issues
The transfer of property requires a municipal rates clearance certificate. Delays often arise from:
- Outstanding rates and utilities
- Discrepancies in municipal records
Tip: Ensure all municipal accounts are up to date and request clearance as soon as possible.
6. Problems With the Property Title Deed
Title deed issues, such as outdated records, caveats, or bonded property complications, can delay or prevent registration.
Tip: Conduct a title deed search early to identify and address any encumbrances.
7. Bond Approval and Bank Delays
Banks can delay bond approvals, leading to frustration for buyers and sellers. Issues include incomplete applications or conditions not being met.
Tip: Work with an experienced bond originator to streamline the approval process.
8. Failure to Meet Deadlines in the Sale Agreement
Many agreements include specific timelines for conditions like bond approvals, deposits, or inspections. Missing these deadlines may void the contract.
Tip: Keep track of all deadlines and ensure compliance with agreed conditions.
9. Unresolved Estate or Divorce Issues
If the property forms part of a deceased estate or ongoing divorce settlement, unresolved legal issues can complicate the transfer.
Tip: Ensure all estate or marital agreements are finalized before initiating the sale.
10. Fraud and Scams
Conveyancing fraud is on the rise in South Africa. Common scams include:
- Fake attorneys or fraudulent bank account details
- Email interception to divert funds
Tip: Always verify payment details directly with your conveyancer over the phone or in person before making any payments.
11. Miscommunication Between Parties
Poor communication between buyers, sellers, agents, and attorneys can lead to delays and misunderstandings.
Tip: Regularly follow up with your conveyancing attorney and estate agent for progress updates.
Being Prepared
Navigating the conveyancing process in South Africa can be complex, but understanding the potential pitfalls can help you avoid unnecessary delays and costs. If you're buying or selling property, working with a trusted conveyancer will ensure that the process is as smooth and efficient as possible.