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Putting a price on legal fees - Property Guide (Sunday Tribune) - Monday Oct 12, 2009
 Conveyancing attorneys play a vital role in the registration of property transfers or bonds, but this role is often misunderstood. Furthermore, legal fees are often a hidden cost that can come as a surprise to first-time buyers. Part of the service provided by the attorney is to draft the documents necessary for the transaction to be registered in the Deeds Office, obtain a rates clearance certificate from the local municipality and ensure that any necessary tax has been paid. The conveyancer will appear before the Registrar of Deeds on behalf of the parties concerned, obtain the consent of any third parties that may be required in terms of the title deed or the sale agreement and, if there is a mortgage bond, will ensure that all the bank's requirements have been satisfied. The conveyancing attorney is important in facilitating communication between the seller, the buyer and the estate agent and ensures that all parties involved comply with the conditions of the sale agreement. In terms of fees for these services, these are largely governed by a tariff published by the Law Society. But this tariff merely serves as a guideline or recommendation and attorneys may charge a fee other than the stipulated tariff if they so wish. As a result, the fee may be negotiated between the attorney and the client. According to the tariff, the fee is determined by the value of the purchase price of the property or the amount of the bond to be registered. For example, according to the latest tariff effective from July 1, 2009, the recommended transfer fee for a property of R1 million is R12 500 excluding VAT and the recommended bond registration fee for a bond of R1m is R9 400 excluding VAT. There are certain costs and disbursements the attorney is entitled to charge the client over and above the tariff fee. These costs include the registration fee levied by the Deeds Office on every transaction, disbursements to computer software providers in relation to electronic instructions, postages and petties such as telephone calls, faxes and e-mails and other disbursements to third parties. It is important not to mistake transfer fees with transfer duty. Transfer duty is a property tax that is paid to the SA Revenue Service, whereas transfer fees are the fees paid to the conveyancing attorney for the service they provide.
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