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Conveyancer, transfer process and documents required
A conveyancer is an attorney who is qualified and authorised to prepare and execute documents in the Deeds Office. He is also personally responsible for ensuring that the terms, obligations and finances relating to the transaction are strictly adhered to. After the agreement has been concluded, ownership must pass from the seller to the purchaser. In Namibian law, ownership of immovable property passes only after the transaction has been registered in the Deeds Office. It is the conveyancer's duty to attend to these details. He is usually appointed by the seller.
The transfer process
When the conveyancer receives the copy of the Agreement of Sale, the following is set in motion:
Assuming that there is a bond registered over the property, the conveyancer asks the bondholder (usually a bank) in writing what amount is required to cancel the bond. This is referred to as the cancellation figure. At the same time, the bondholder is asked for the title deed. This is forwarded to the bondholder's attorney, and subsequently to the seller's conveyancer.
The municipality (or managing agent in the case of a sectional title unit) is asked for a rates clearance certificate. This is a certificate usually valid for a period of three months and serves as proof that the seller has met his obligations for rates and taxes, water and electricity. The seller has to pay his rates and taxes in advance for this period of 3 months. For an estimate of how much this will be, the last statement received from the municipality has to be multiplied by three. The purchaser is requested to contribute an amount which varies from area to area, and upon transfer, the seller is refunded pro rata.
Upon receipt of
the title deed, the conveyancer prepares the transfer documents for signing by the
parties, who are then requested to sign them. At this stage, the seller will be asked to
pay the bondholder's attorneys the bond cancellation fee.
Transfer duty on the purchase price is calculated as follows:
For a natural person, a company, close corporation or trust:
- On the first N$60 000 - 1%
- N$60 001 - N$250 000 - 5%
- Thereafter 8%
Conveyancing fees are calculated according to a tariff determined by the Law Society. The Purchaser is usually liable for the transfer as well as the fees for bond registration.
Upon signature of the documents by the parties, the conveyancer collects the transfer duty and fees from the purchaser, pays the duty to the receiver of revenue and obtains a transfer duty receipt.
In most cases, the purchaser will have applied for a bond. The conveyancer contacts the bond registration attorneys immediately and furnishes them with the draft title deed.
The conveyancer will then call for guarantees for the outstanding amount of the purchase price, depending on how the contract is structured. Assuming, for example, that the balance of the purchase price is covered by a bond obtained by the purchaser, guaranties will only be received after the purchaser has signed the bond documentation with the bond registration attorneys and paid the costs.
After the documents have been signed, they are lodged at the Deeds Office. Lodgment is done in conjunction with the bond cancellation attorneys as well as the bond registration attorneys. From this point, transfer normally takes between ten to fourteen days.
will then draw a final account and pay the seller the proceeds of the sale as well as the
balance of the prorata rates and taxes. If necessary, payment will also be made to the
purchaser for any credit or interest that may have accrued to him from his deposit, and he
will also pay the estate agent's commission.
The following documents are usually required by the conveyancer:
From seller and buyer
identity documents, antenuptial contract, marriage certificate, divorce order (where
If the property is sold or bought by:
Company - copies of the memorandum and articles of association, certificate to commence business, copy of the first page of the authorised person's identity book;
close corporation - a copy of the CC1 founding statement and/or theCC2, copy of the first page of the authorised person's identity book;
Trust - a copy
of the trust deed, copy of letters of authority issued to trustee/s, copy of the first
page of the authorised person's book.
Name or bondholder (s) (i.e. bank, branch and account number)
Valid electrical certificate of compliance
Ideally the agent should advise the purchaser what the costs of transfer and bond registration are likely to be so as to prevent delays.