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Private Property Sale in Cape Town 2024 | Legal guidance
Email lawyer@capetownlawyer.co.za to hire a professional property lawyer to guide you through a private sale process, at a fifth of the usual estate agent price, and in exchange for appointing them to do the conveyancing (an unavoidable expense which you would anyway have to incur).
A private sale of your house can lead to huge savings by not having to pay them up to 7.5 percent of the sale price, and even more if you include the lower price you may have sold for if pressured by an estate agent to make the sale (so that they can get paid).
Legal framework which is sometimes ignored by unethical agents
The Conduct of Estate Agents (Property Practitioners) is regulated by The Property Practitioners Act which came into effect in February 2022. The Property Practitioners Regulatory Authority holds Property Practitioners accountable to a code of ethics.
The Unholy alliance between estate agents & conveyancers
It has been long an unspoken practice in the Real Estate sector that Estate Agents appoint in Deeds of Sale Transferring Attorneys with whom they have a relationship, without consulting the Seller. In order to have Estate Agents “refer” work to Conveyancers, Law Firms are expected to give incentives such as referral fees or kickbacks to Estate Agents and to entertain; shower them with free Lunches; gifts; holidays; and even pay for their marketing expenses among others. Although on the face of it this may seem harmless, it will lead to conflicts of interest. There is a risk that the Conveyancer may prioritise the interests of the Agent.
Sellers have the right to appoint a Transferring Attorney
Sellers are often not aware that it is their right to appoint a Transferring Attorney to Act on their behalf. The Code of Conduct is clear in terms of Section 58 of the Property Practitioner’s Act, which prohibits any practice whereby a Property Practitioner proposes to a Seller to use a certain Conveyancing Attorney who has “supported” the Agent with incentives.
Section 58(1) : Limitation on relationships with other property market service providers
"A property practitioner may not—
- practise in association with any person which or who is prohibited by any law,any professional code of conduct, any code of ethics or protocol, report or charter on corporate governance, from doing so; or
- enter into any arrangement, formally or informally, whereby a consumer isobliged or encouraged to use a particular service provider including an attorney to render any service or ancillary services in respect of any transaction of which that property practitioner was the effective cause."
Estate agents obligated to inform sellers of right to appoint conveyancer
Sellers should know that they have a right to appoint a Conveyancer of their choice and to have their rights protected. Agents must advise the Seller of their right to appoint a Conveyancer of their choice and are not to influence Sellers to refer the transfer to a Conveyancer who may be the Agents preferred Attorney.
Penalty for estate agents in contravention
An agent who unethically appoints a Conveyancer of their choice breaches the trust of a buyer and seller to the transaction who should have confidence that their interests are being prioritised and protected during the conveyancing process. An Agent in contravention of this Act will be required to repay any fees received for the property transaction and may get a fine.
Appoint your own conveyancer for your private property sale
Email lawyer@capetownlawyer.co.za & request your conveyancing attorneys to guide you through a no-agent property sale process.
Property Sale/Purchase & Transfer
Property transfer & sale Info
Sellers of property & buyers, speak to a property lawyer before you hire an estate agent!
- The property transfer process in South Africa - protect your interests.
- Understanding the various conveyancing costs.
- Usufruct Agreement on Property in South African law.
- Deeds Registeries Act.
- Cape Town Conveyancing Attorneys
- List of the best conveyancing lawyers in Cape Town.
- Checklist to help you identify the best conveyancer near you.
- Blouberg conveyancing attorneys
- Milnerton conveyancing attorneys
- Pinelands conveyancing attorneys
- Tableview conveyancing attorneys
- Conveyancing fees
- Conveyancing quote
- New conveyancing fees from 27 May 2024
- Transfer costs calculator for property anywhere in South Africa.
- Can I negotiate transfer costs?
- Transfer attorney vs bond attorney.
- Fixed fee conveyancing in South Africa. Possible?
- Land conveyancing
- Commercial Property:
- Marriage/Divorce-related:
- How to transfer property from husband to wife (or vice versa); whilst still married (ie not getting divorced).
- "Protection" of fixed property using a trust.
- Conveyancers conduct the transfer of property ownership from one spouse to another (or to a third party, if relevant).
- Liquidator to sell property & divide proceeds as part of divorce.
- Property sales
- Instead of using real estate agents rather use professional lawyers to sell your property.
- Urgent house sale.
- How to check whether an estate agent is licensed.
- Example of a property sales agreement.
- FLISP Housing subsidies.
- Property practitioner's Act.
- Code to guide conduct of property practitioners.
- Property purchases
- Terminology
Conveyancing & property transfer discussion forum
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