This fee guideline applies to instructions received as from 1 March 2013, and conveyancers must note that Conveyancing fees are negotiable as they are merely guidelines and not minimum fees. The guideline consists of the following six parts:
We will be redesigning and updating the Conveyancing Tables to reflect these new fees as well as any transfer duty changes which might occur in the 2013 budget later this month. In the meantime a summary of the fees for transfers and mortgage bond registrations is reproduced below. On average the transfer fees have increased by 10% while bond registration fees have increased by 20%.
Errata (20 February)
Two pages of errors have been corrected by LAWSA:
|Value of Property||Bond Registration||Transfer|
|< R80 000||R3 000||R3 520|
|R80 000 < = R90 000||R3 000||R3 740|
|R90 000 < = R100 000||R3 000||R4 015|
|R100 000 < = R125 000||R3 120||R4 125|
|R125 000 < = R150 000||R3 240||R4 290|
|R150 000 < = R175 000||R3 480||R4 620|
|R175 000 < = R200 000||R3 600||R4 840|
|R200 000 < = R250 000||R3 960||R5 280|
|R250 000 < = R300 000||R4 440||R6 050|
|R300 000 < = R350 000||R4 920||R6 490|
|R350 000 < = R400 000||R5 520||R7 040|
|R400 000 < = R450 000||R6 000||R7 590|
|R450 000 < = R500 000||R6 480||R8 250|
|R550 000||R7440||R9 350|
|R600 000||R7 440||R9 350|
|R650 000||R8 400||R10 450|
|R700 000||R8 400||R10 450|
|R750 000||R9 360||R11 550|
|R800 000||R9 360||R11 550|
|R850 000||R10 320||R12 650|
|R900 000||R10 320||R12 650|
|R950 000||R11 280||R13 750|
|R1 000 000||R11 280||R13 750|
|R1 500 000||R13 920||R16 500|
|R2 000 000||R16 560||R19 250|
|R2 500 000||R19 200||R22 000|
|R3 000 000||R21 840||R24 750|
|R3 500 000||R24 480||R27 500|
|R4 000 000||R27 120||R30 250|
|R4 500 000||R29 760||R33 000|
|R5 000 000||R32 400||R35 750|
|R10 000 000||R45 600||R49 500|
|R15 000 000||R58 800||R63 250|
|R20 000 000||R72 000||R77 000|
|R30 000 000||R98 400||R104 500|
How is it possible that the fee for a Section 45 endorsement has been reduced from 75% of tariff to 50% of tariff? Exactly the same amount of work involved as that for a full transfer - the only additional document required for a full transfer is a draft deed. Terrible news!
I agree with the comment made by Tracey Knott. The amount of work in a Section 45 endorsement application is the same as with a normal transfer. In fact, as a conveyancer I have had numerous Section 45 endorsements where there was more work required due to problems with Rates Clearances or getting one of the parties to sign in the case of a divorce. The reduction in the fee rate just does not make sense. Is it not perhaps a mistake?
I agree with Tracey and Stephan that the fact that the fee for Section 45 endorsement being reduced to 50% is a disappointment. The big difference between a normal transfer and a Section 45 endorsement is the fact that usually with an endorsement there are virtually no finances involved and therefore the responsibility of the conveyancer is so much smaller.
Especially in the case of an estate transfer, the amount of work cannot be compared with that of a normal transfer. I assume that this is the reason why the fee was reduced. I would suggest that the fee for a 45 endorsement should be fixed as the amount of work involved for a R500,000 property is exactly the same as for a R2million one.
I agree with Tracey and Adv Stephan Kruger.
I do not agree with Elaine. Finances does not have an effect on the conveyancer's responsibility. The correctness of the drafting of the documents, obtaining of rates clearance, obtaining of SARS documents, are exactly the same as with a normal transfer, but like Tracey said, only no Deed of Transfer has to be drawn. Your FICA procedures and requirements also remain the same.
If one argues that the fee be fixed as the work involved remains the same for different price sectors, the same goes for normal transfers. One does not have more work on a higher transfer price than on a lower one. I agree. The fee of 50% on a Section 45 Endorsement is a great disappointment.
Keep in mind it is based on the full value of the property.