PROPERTY: Seller’s right to appoint conveyancer
- Jendi Moore
- Feb 1, 2015
- 2 min read
There is no law in South Africa that states whether the purchaser or seller must appoint a conveyancer to attend to the transfer of property and it is definitely not a non-negotiable term in any contract of sale of property.
It is crucial that sellers be aware of their right to appoint a conveyancer to attend to the transfer of what is one of their most valuable assets. While purchasers are obliged to pay transfer costs which include the conveyancing fees, it is important to keep in mind that the seller is more at risk than the purchaser. The reason for this is that the value of the property far outweighs the transfer costs to be paid by the purchaser. It is therefore imperative that the seller does not lose control of the transaction. One way to do this is to agree that the conveyancer of his choice is to handle the transfer.
Another factor to be aware of is the potential for conflict of interest. Not every transfer is a smooth transaction and sometimes parties will disagree on certain issues after the signing of the sale agreement. Although the conveyancer is to perform his duties impartially, it is very important that the rights of the seller are very much protected, keeping in mind that property is probably the largest single asset that a person will come to own.
It is common practice for estate agents to advise purchasers as to which conveyancers to appoint. However, one must note, that the Estate Agents Code of Conduct in the Estate Agency Affairs Act, 1976, states that “no estate agent shall without good or sufficient cause, directly or indirectly, solicit, encourage, persuade or influence any party or potential party to a pending or a complete transaction to utilize or refrain from utilizing the service of any particular attorney, conveyancer or firm of attorneys.” Most referrals are not made at arms length and therefore must be approached with great circumspection.
Property is growing more and more valuable by the day and sellers should exercise extreme caution when dealing with it.
Recent Posts
See AllMany South African consumers frustrated by their cellular service providers no doubt appreciated the David and Goliath battle that played...
Continuing the recent trend of land claim valuation nightmares, after the Constitutional Court recently ruled that CPI-based valuations...
The Supreme Court of Appeal (“the Court”) was recently faced with a decision as to whether the cancellation of a contract via email...
Comentarios