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Property Purchaser's checklist | reduce risk of being scammed

As property purchasers are the party who have to EFT the purchase amount into a hopefully valid trust account of the conveyancing attorneys; they are the party most at risk of being scammed. This article discusses how potential property purchases can reduce their risks.

Whilst the purchaser is the party most at risk, the conveyancing attorneys are traditionally chosen by the seller of the property. However, it is perfectly within the rights of the purchaser to insist on using their conveyancing attorney, and they could include that as part of their "offer to purchase", which is after all their offer, and they can place whatever clauses they want into it - the seller of course doesn't have to accept.
Before appointing a conveyancing attorrney, check that:

Is the Attorney a qualified conveyancer? Get their member number and check it with the Legal Practice Council.
How much experience does the attorney have?
They are willing to meet in person; and in person confirming their bank account number and exact spelling of their email address.
Documentation containing banking details will be hand delivered.
All documents being attached to emails will be password protected.
Insist on paying money only to the conveyancing attorney's trust account. The system of paying some to the estate agent's account and some to the property attorney's trust account, multiplies the risk of getting scammed. The estate should get paid by the attorney at the end of the transaction.

The purchaser should insist on paying a small amount first; once that is confirmed received by the conveyancers, only then is the remainder paid. Only use bank transactions which contain the necessary guarantees (secure the purchase price with a bank guarantee issued in favour of the seller as set out in the offer to purchase document). If it takes too long and you thus lose out on the property purchase, so be it. Carry out checks that estate agents involved are licensed and listed on the PPRA website, and that conveyancing lawyers are listed as such on the Legal Practice Council website, and check their member number. Purchasers should approach conveyancing attorneys who they are going to insist on using, before they embark on the property sales process; and build up a relationship over time. The property attorneys can:

Share the banking details of their trust account at the start of the process, allowing a lot of time to carry out multiple telephonic checks. Insist that they seller obtains their bank account number telephonically; and phones for a final check of it before making payment.
Frequently emphasise telephonically what their correct email address is, and to watch out for derivations of it.
Share details of the extent to which they are insured against cybercrime, phishing, man in the middle scams and identity theft.
Vett the reputability of any estate agents who enter the fray, both if the purchaser chooses to use a property agent, but especially of any estate agent the seller is using.
Help the purchaser construct the offer to purchase, so that it has them as the conveyancing attorneys. There are also some other strategic clauses, in the offer to purchase, which I will write about over the coming weeks.
Some property attorneys sell property as well; this is allowed these days. In my opinion this is the safest course of action to take, but is up to the seller, not the buyer. The purchaser, however, can look more favourably at property sales where professional lawyers are conducting the sale.

Do the above steps eliminate risk? No, they do reduce it a lot though. Before the advent of the digital age, people would build personal relationships with their lawyers over the years. There's a lot of security and derisking of transactions from working with people who you have built up years of trust with.

Once you have a property you like

Once you've found the property which aesthetically appeals to you, and the price is right, ask your lawyer to:

get hold of the title deed, and check that the seller is the rightful owner of the property.
check whether there are any liens or encumbrances on the property.
obtain from official records details of the property's boundaries and zoning regulations.

Verify that:

Any estate agent the seller is using is registered with the Property Practitioners Regulatory Authority. Check what the agent's reputation is like by looking at online feedback and ratings (e.g. on Google).
The seller's name on the title deed matches the ID documents being shown.

Drop us an email at

lawyer@capetownlawyer.co.za and we will put you in touch with property lawyers who you can start building that relationship with. We would especially like to get in touch with property purchasers who are out there looking for properties to buy, and to derisk the experience for you.

Property Buy/Sell/Transfer/Usufruct

Lawyer standing in front of a house with a sign saying URGENT SALE

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.
Conveyancing lawyers in Cape Town
- Checklist to help you identify the best conveyancer near you.
- Bellville conveyancing attorneys
- Blouberg conveyancing attorneys
- Milnerton conveyancing attorneys
- Pinelands conveyancing attorneys
- Tableview conveyancing attorneys
Transfer costs calculator for property anywhere in South Africa
Deeds Registries Act.
Servitudes
- Usufruct Agreement on Property in South African law
  - Usufruct value calculator (only one in South Africa)
Land conveyancing
Transfer attorney vs bond attorney.
Commercial Property:
- Transferring property as a going concern.
- Commercial Property conveyancing quote
Marriage/Divorce-related:
- How to transfer property from husband to wife (or vice-versa) while still married.
  - Donation of property agreement not followed through.
  - When property is erroneously in your spouse's name.
  - "Protection" of fixed property using a trust.
  - Conveyancers conduct the transfer of property ownership between spouses.
  - Liquidator to sell property & divide proceeds as part of divorce.
Property sales
- Use conveyancer to guide your private property sale.
- 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
- Scams property purchasers should watch out for.
- Home loan repayments calculator.
Terminology

Conveyancing & property transfer discussion forum

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