Conveyancing is the process of
transferring ownership of real
estate from one person to
another .There are three types
of conveyancing attorneys:
transferring,registration and
cancellation. The transferring
attorney transfers the property
from the seller to the
buyer,while the registration
attorney registers the mortgage
bond for the bank financing the
purchase. The cancellation
attorney cancels the the seller’s
current mortgage bond. The
buyer gives the conveyancer a
deposit of the purchase of the
purchase price to be held in
trust until the transfer occurs.
The Transfer Duty Act 40 of
1949 charges South African
Revenue Services transfer duty
when property is obtained. If the
seller is a certified Vat vendor
and supplies the property as
part of their organisation, the
buyer is exempt from paying
transfer duty. However if the
buyer is also a licensed VAT
seller and purchases the
property to make taxable
supply, they can reclaim VAT. If
VAT has been paid, transfer
duty is not due.