J.D.Vedan & Company

14/10/2024

Detailed Overview of Conveyancing in South Africa
Conveyancing is the legal mechanism through which the ownership of immovable property is transferred from one party (the seller) to another (the buyer). This complex process is governed by South African property law and involves various legal, financial, and administrative steps. Only a qualified conveyancer, an attorney who has passed the conveyancing examination, is permitted to carry out this work.
1. The Role of the Conveyancer
A conveyancer is responsible for managing the entire property transfer process, ensuring that all legal obligations are met and that the transaction is legally binding. This includes preparing documents, calculating fees, liaising with the Deeds Office, banks, and municipalities, and ultimately ensuring that the property title is registered correctly in the buyer's name.
Conveyancers can either be instructed by the seller or, in some cases, jointly by both the seller and buyer. Importantly, conveyancers act as impartial legal officers despite often being appointed by the seller.
2. The Process of Conveyancing
The conveyancing process typically follows several key stages:
Sale Agreement: Once a buyer and seller agree on the sale of the property, they sign a sale agreement. This contract is legally binding and outlines the terms and conditions of the sale, including the purchase price, date of occupation, and whether the sale is contingent on the buyer obtaining a bond (mortgage loan).
Appointing the Conveyancer: The seller generally appoints a conveyancer to manage the transfer process. However, the buyer may also engage an attorney to safeguard their interests, especially in more complex transactions.
Obtaining Documents and Clearances: The conveyancer collects various documents required to transfer the property. These include:
Title Deed: The official document that proves ownership of the property.
Rates Clearance Certificate: Issued by the local municipality, this certificate confirms that the property’s rates and taxes are paid up to date. It is required by law before transfer can occur.
Transfer Duty Receipt: If the property is valued above a certain threshold, the buyer must pay transfer duty to the South African Revenue Service (SARS). A receipt is then issued and lodged with the transfer documents. (Note: First-time buyers and lower-value properties may qualify for transfer duty exemptions.)
Bond Application and Registration: If the buyer is obtaining a bond (mortgage), the bank will appoint its own conveyancer to register the bond over the property. This bond serves as security for the loan. The bond registration process occurs concurrently with the property transfer, and the bank will only release funds once the bond is registered.
Signing of Transfer Documents: Both the buyer and seller will be required to sign various legal documents prepared by the conveyancer, such as the Power of Attorney to Transfer and the Transfer Duty Declarations. The buyer’s signature on the bond documents will also be required if a loan is involved.
Lodgement at the Deeds Office: Once all documentation is completed and all relevant fees are paid (including conveyancing fees, transfer duty, and bond registration costs), the conveyancer lodges the transfer documents at the Deeds Office. Lodgement refers to the submission of the deed of transfer, bond registration documents, and supporting materials to be examined by the Deeds Office staff.
Examination and Registration: The Deeds Office examines the lodged documents to ensure that they comply with legal requirements. This process can take between 7 to 10 days, depending on the workload at the Deeds Office. Once approved, the transfer is registered, and ownership of the property is officially transferred to the buyer. The bond (if applicable) is also registered at this stage.
Final Steps: Upon successful registration, the buyer becomes the new owner of the property. The conveyancer will then notify both parties, pay the proceeds of the sale to the seller, and send the buyer the newly registered title deed.
3. Costs and Timeframe
The entire conveyancing process usually takes between 8 to 12 weeks from the date the sale agreement is signed to the final registration at the Deeds Office. Delays can occur if there are issues with obtaining clearance certificates, if the buyer experiences delays in securing financing, or if the Deeds Office has a backlog.
Costs associated with conveyancing include:
Transfer Duty: A tax payable by the buyer to SARS, based on the property’s purchase price (exemptions apply for properties below a certain value).
Conveyancing Fees: These are professional fees paid to the conveyancer, calculated according to the value of the property and usually guided by a tariff set by the Law Society.
Bond Registration Fees: If the buyer takes out a bond, separate fees will be charged for registering the bond at the Deeds Office.
Rates and Taxes Clearance: These are charges paid to the local municipality to ensure that all outstanding rates, taxes, and services on the property are up to date.
4. Additional Considerations
Occupational Rent: If the buyer takes occupation of the property before transfer is completed, they may be required to pay occupational rent to the seller. This is usually agreed upon in the sale agreement.
Voetstoots Clause: Many sale agreements include a “voetstoots” clause, meaning the property is sold “as is,” and the seller is not liable for any defects unless they were deliberately concealed. Buyers should thus conduct thorough inspections before purchasing.
Glossary of Conveyancing Terms (Expanded)
Conveyancer: A specialized attorney authorized to transfer property and register deeds.
Deed of Transfer: The legal document that officially records the transfer of ownership of the property.
Title Deed: A document proving ownership of a specific property. It is stored at the Deeds Office until transferred to the new owner.
Deeds Office: The official government office where all records of land ownership, mortgages, and property transfers are kept.
Rates Clearance Certificate: Issued by the municipality, this document certifies that all municipal rates and service charges are paid in full. It is required before property transfer.
Transfer Duty: A government tax paid to SARS on the transfer of property. The amount is based on the purchase price or market value of the property.
Bond: A mortgage loan granted by a financial institution to a buyer to finance the purchase of the property. The bond is registered over the property as security.
Bond Cancellation: The process of canceling an existing bond when a property is sold. This is done by the bondholder’s conveyancer.
Occupational Rent: Rent paid by the buyer to the seller if the buyer occupies the property before transfer is registered.
Lodgement: The process of submitting the transfer and bond documents at the Deeds Office.
Registration: The formal process of recording the buyer as the new owner of the property at the Deeds Office, after which the transfer is complete.
Power of Attorney to Pass Transfer: A document signed by the seller, authorizing the conveyancer to act on their behalf to pass the transfer of the property.
Suspensive Condition: A clause in the sale agreement that makes the sale subject to certain conditions being fulfilled, such as securing a bond or obtaining certificates.
Voetstoots Clause: A legal term meaning “as is.” It protects sellers from liability for defects in the property unless they were concealed deliberately.
Transfer Duty Receipt: A receipt issued by SARS to confirm that transfer duty has been paid, necessary before the property can be transferred.
This expanded explanation outlines the conveyancing process in more detail, from the sale agreement to the final registration of the property in the buyer's name.

29/06/2024

AN EASY TO UNDERSTAND GUIDE TO REGISTERING AND CLAIMING UNDER THE UNEMPLOYMENT INSURANCE ACT ( please check the Department of Employment a labour Website for any additional changes and developments)

In South Africa, the Unemployment Insurance Fund (UIF) provides financial assistance to workers who have lost their jobs or cannot work due to specific reasons. Here's a simple breakdown of how it works:
How It Works
Contributions: Employees and employers both contribute to the UIF. The contribution is 2% of the employee's salary (1% from the employee and 1% from the employer).
Eligibility: To be eligible for UIF benefits, you must have contributed to the fund. You can claim if you are:Unemployed
On maternity leave
On adoption leave
On parental leave
Unable to work due to illness
The dependent of a deceased contributor
Who Can Claim
Unemployed Workers: If you have lost your job through no fault of your own (e.g., retrenchment), you can claim UIF.
Maternity Leave: Women on maternity leave can claim UIF.
Illness Benefits: If you are unable to work due to illness for more than 14 days, you can claim UIF.
Adoption Leave: If you adopt a child under two years old and take adoption leave, you can claim UIF.
Parental Leave: New parents (excluding mothers who are claiming maternity benefits) can claim for parental leave.
Dependants of Deceased Contributors: Dependants can claim in the event of the contributor's death.
How Much Can Be Claimed and Over What Period
The amount you can claim depends on your salary and the length of time you've been contributing to the UIF.
You can claim for up to 365 days if you've been contributing for four years or more. If you've been contributing for less time, you can claim one day for every six days worked.
The benefit amount is a flat rate of your average earnings.
Funeral Benefits
Dependants or Spouse: Yes, the spouse or dependants of a deceased UIF contributor can claim for funeral expenses. This is part of the dependants' benefits.
Other Benefits
Maternity Benefits: Financial support for women on maternity leave.
Illness Benefits: Financial assistance if you are ill and unable to work for more than 14 days.
Adoption Benefits: Financial support for adoptive parents taking adoption leave.
Parental Benefits: Financial support for new parents taking parental leave.
Dependants' Benefits: Financial assistance to the family of a deceased UIF contributor.
Overall, the UIF aims to provide temporary relief to workers who find themselves without an income due to various life circumstances.
To claim unemployment benefits in South Africa, follow these steps:
Where to Go
Department of Employment and Labour Offices: You need to visit the nearest Department of Employment and Labour office.
Steps to Claim Unemployment Benefits
Register as a Job Seeker:
Visit your nearest Department of Employment and Labour office.
Register as a job seeker.
Documents Required to be obtained and filled out:
Identity Document (ID): Valid South African ID or passport.
UI-19 Form: Completed by your previous employer, providing details of your employment.
UI-2.8 Form: For banking details (to ensure payments are made into the correct account).
UI-2.1 Form: Application for unemployment benefits.
Proof of Registration as a Job Seeker: Obtain this from the Department of Employment and Labour office.
Last six payslips: To verify your earnings.
UI-6A Form: Declaration of continuation of benefits (to be filled every month to confirm that you are still unemployed).
Submit the Application:
Submit all the completed forms and documents at the nearest Department of Employment and Labour office.
You may also be required to attend an interview at the office.
Additional Information
Follow-Up: After submitting your application, follow up regularly to check the status of your claim.
By following these steps and ensuring you have all the necessary documentation, you can successfully apply for unemployment benefits in South Africa.
The 2018 amendments to the Unemployment Insurance Act of South Africa introduced several key changes to enhance the benefits and accessibility of unemployment insurance. These amendments aimed to provide better support for workers who lose their jobs and ensure more comprehensive coverage. The main changes included:

Extension of Benefits Period: The period for which unemployment benefits can be claimed was extended from 238 days to 365 days.

Increase in Maternity Benefits: Maternity benefits were increased from 54% to 66% of the earnings of the contributor, to be paid for a maximum period of 17.32 weeks.

Introduction of Parental and Adoption Leave Benefits: New benefits were introduced for parental and adoption leave. Parental benefits were set at 66% of earnings for ten consecutive days, while adoption benefits were also set at 66% of earnings for a period of up to 10 weeks, similar to maternity benefits.

Enhanced Death Benefits: The amendments increased the benefit payable to the beneficiaries of a deceased contributor from 54% to 66% of the earnings of the contributor, to be paid over a longer period.

Introduction of Commissioning Parental Benefits: For surrogacy agreements, the amendments provided commissioning parental benefits at 66% of earnings for a period of up to 10 consecutive weeks.

Extension of Unemployment Benefits to Learners: The amendments extended unemployment benefits to learners who were engaged in learnerships, thereby offering them financial support if they lost their learnership placements.

Coverage for Public Servants: The amendments ensured that public servants are also covered under the Unemployment Insurance Act, extending the benefits to a broader category of workers.

These changes aimed to create a more inclusive and supportive unemployment insurance system, addressing the needs of various groups including parents, learners, and public servants, and improving the overall financial security of workers in South Africa.

22/06/2024

What is the latest changes to the Pensions Act in South Africa - " THE TWO POT" SYSTEM
The recent amendments to the Pensions Act in South Africa introduce a new "two-pot" system for retirement savings, which will be implemented from September 1, 2024​ . Here's what this means :
Three Components of Pension Funds:
Vested Pot: This contains all your retirement savings accumulated up to August 31, 2024. The rules for this pot remain the same as before, meaning you can only access these funds upon retirement or under specific conditions such as resignation.
Retirement Pot: Starting from September 1, 2024, two-thirds of your new contributions will go into this pot. These funds are locked until you retire.
Savings Pot: The remaining one-third of your new contributions will go into this pot. You can make one taxable withdrawal per year from this pot, provided the amount exceeds a minimum threshold, which helps in case of emergencies​.
Access and Withdrawals:
You can withdraw from the savings pot once a year, which provides some liquidity and flexibility if you need money before retirement​ .
Withdrawals from the savings pot are taxable and should ideally be reserved for genuine emergencies rather than regular expenses​ .
Seed Capital:
Members will have the option to transfer a small portion (up to 10% or R25,000, whichever is lesser) of their vested pot into the savings pot as initial "seed capital," providing immediate access to some funds​ .
Implications for Divorce and Death:
In divorce proceedings, the pension interest will now include the balances from all three pots (vested, retirement, and savings). Upon death, the benefits paid out will reflect the balances in all three pots​ .
The goal of this system is to balance the need for long-term retirement security with the flexibility of accessing funds for short-term needs, providing greater control over retirement savings while ensuring some funds remain preserved for retirement​.

09/03/2024

The first edition of my book" Mayville Mosaic" has been sold out.Order a copy of the second edition at www.madeindurban.co.za.

06/03/2024

Honesty, Integrity, Fairness and Justice,always seeking to do right.We live by these values.Thirty five years in existence.Thank you to our loyal clients, service providers and friends.

01/02/2024

GETTING MARRIED FOR BETTER NOT WORSE:AN ANTE- NUPTIAL CONTRACT IS BEST
Hey Adam and Eve, ready to take the plunge into wedded bliss? Before you embark on this thrilling journey, let's talk about property, possessions, inheritances ,investments and cash, my friends. Forget just the lovey-dovey stuff – we're diving into the financial rodeo of matrimony!
Picture this: you stroll up to the Marriage Officer, wide-eyed and dreamy. But hold your horses! If you haven't consulted a legal eagle or snagged a note from the Notary shouting, "Ante-Nuptial Contract signed and sealed," you will accidentally stumble into the world of 'Communist Marriage' or community of property. Yup, it's a thing! Your assets become one big happy family, and creditors could be eyeing Eve's wheels if Adam goes on an Apple shopping spree he can't handle.
Ante-Nuptial means you lock in your stuff pre-marriage and post- marriage. Eve's got her stash, Adam's got his golf clubs – no marital asset mashup here! There's the A.N.C. with accrual, where you list assets pre-game and divvy up the loot fairly post-game (a.k.a., death or the dreaded "D" word). Then there's the plain ol' A.N.C., where everything stays as separate as a kid's plate of food. With both forms, even if Adam in a moment of stupidity loses all his dough feeding the Ponzi Snakes, Eve will still have wherewithall to keep both afloat.
But hey, lovebirds, fear not! Even if you roll with the A.N.C., you can still snag that dream townhouse at Eden Estate together. Joint ownership, anyone? Happy house-hunting, you crazy kids!

So go to your friendly, neighbourhood Attorney / Notary Public and get an A.N.C.before you get married, because " Ante- Nuptial Contracts are a married couples best friend".

30/01/2024

Why do people not make Wills?
I do not for the life of me understand why people neglect to make Wills. Even people who slogged hard all their lives to make a living, and accumulate property and capital do not do this relatively simple thing.They sign countless papers registering property, purchasing vehicles, filling in applications for jobs and filling in lotto numbers, but do not make the short trip to see their lawyer to give instructions for the papers signifying to whom their treasured possessions should go to upon their inevitable departure from Earthly life to only God knows where.
Just think! Who deserves to get your property? Who do you want to take care of? Who do you want to reward? Who do you love? The ideal way to go is to use your accumulations to benefit yourself and your loved ones while you are alive, and only leave the surplus you can' t consume and the immovable property to others. Too many children wage bitter battles over their parents estates, upon their death, and sometimes the bitterness lead to a breakdown in relations.Try to avoid that by being crystal clear in your bequests, leaving no room for doubt.Where there is doubt , there are costly legal battles in Court,which might eat into the estate and protagonists and antagonists pockets.
Not everyone is qualified to draft wills.Beware the cheery religious practitioner.He may claim to know the way to a glorious afterlife, but his attempt to draw up your will may lead to it being rejected in this very life, by the Master of the High Court. Also avoid many cut and paste drawers up of Wills, and mass produced Will providers with gimmicks attached up their sleeves.Rather go to your trusty old Attorney, wherever he or she may be, have a long discussion, let your attorney know your fears and concerns for eg. Johnny Boy is spending too much money on the ponies, or Claire needs protection and care as she is a special child, differently enabled, and let your attorney draw your Will.
Death as poet John Keats said is a leveller.It can strike on at any time.It struck Keats in the prime of his youth.We can go to the great beyond anytime.Be prepared, as the Scouts says.Leave your affairs in a tidy state, the way you want it, and hopefully while you art in heaven, let your will as per your Will be done on Earth.

12/11/2023

Wishing happiness for you and your family - on this day and on every

Happy Diwali :)

04/10/2023

My Podcast on “After The Bell” ( on YouTube) and with Dillon Murugan

Please share your thoughts

Here’s the link https://youtu.be/I1xkqGB88Zc?si=GU8QoVOglKEHTVaA

Previn Vedan, Activist
J.D.Vedan & Company

In this episode I discuss the ins and outs of the legal game as well as discuss what it takes to have the people's best interest at heart with Previn. He exp...

24/09/2023

My heritage is part of everyday that I do.

I acknowledge it, and I also acknowledge your heritage also.

We are different, and we are also similar.

Happy Heritage Day!

Let us renew our commitment to build a better South Africa for All.

Previn Vedan, Activist

12/09/2023

CONSUMER CATCH UP on Sunrise Fm

Every Tuesdays from 11:00, we will be touching on various legal issues.

Please send us your requests and recommendations for topics that you would like for us to discuss.

WhatsApp Line for SUNRISE FM: 0817776000

J.D.Vedan & Company
Previn Vedan, Activist

25/08/2023

SA Lawyer is a supplement by De Rebus and assists young legal practitioners and candidate legal practitioners with practical guidance and step-by-step articles, events, useful information and more. Click on the link to see how you can contribute to the supplement. https://www.derebus.org.za/sa-lawyer/