Conveyance is the act of transferring property from one party to another. The term is commonly used in real estate transactions when buyers and sellers transfer ownership of land, building, or home. A conveyance is done using an instrument of conveyance—a legal document such as a contract, lease, title, or deed.
At this stage, you are on your way to acquiring a property. The bank will engage a conveyancer to register a bond against the property and transfer the title deed into your name. The seller has the first option to pick the conveyancer of their choice who can do both the bond and title transfer or just the transfer if they are not on the bank panel of conveyancers. They will proceed to ensure that the seller pays all costs attached to the property such as council rates and municipal bills. The conveyancer will get a tax clearance certificate from BURS so make sure you are in the good books with the tax man.
BOND REGISTRATION FEE
A Property Bond is an investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest. It is a debt security to the investor. The bond registration fee is determined by the amount the buyer or the financing institute will be willing to register the bond at or protect their interest.
This is the tax that is levied on the value of the property at hand. Citizens pay 5 % of the amount above P200 000 and Non-citizens to pay 5 % of the total purchase price.
This amount is paid to the lawyers; it is determined by the purchase price and the bond amount. Please note that the fees are standard in all law firms and they are regulated by the Botswana Law society. There is a table that shows the amount for bond and transfer fees which is the same for all law firms.
This amount is usually P600 on average for disbursements, this includes all administration costs for printing, telephone, sending, and collecting documents.
Please note that all Banks are now requiring a 10% deposit for all transactions regardless of the open market value of the property. The banks are now financing 80-90% of the sale price of the property in Gaborone and less in tribal land and greater Gaborone. This means it is now expensive to buy property outside Gaborone as the deposit amount is now higher than the requirement in Gaborone.
What is the process of conveyancing?
Conveyancing process for buying a property
The buyer’s Conveyancer instructed on acceptance of the offer. The buyer arranges a survey of the property and makes an application for a mortgage (if required). Buyer’s Conveyancer confirms instructions by letter setting out the terms of business and fixed fee costs.
How long is the conveyance process?
between 8 and 12 weeks
Conveyancing can take anywhere between 8 and 12 weeks from when the sale is agreed upon. The time it takes to complete the conveyancing process will depend on whether you’re buying or selling and if you’re part of a property chain. The conveyancing solicitor you choose is also a vital factor.
How long does the conveyancing process take no chain?
It could take up to 4 weeks to complete the conveyancing process when buying a house with no chain. However, it is difficult to provide an exact average for the length of time the entire buying process will take with no property chain.
Can conveyancing be done in 2 weeks?
How long do conveyancing searches take? Searches usually take around 2 weeks, but some take three weeks and others can be up to six weeks if particularly complicated the local authority in question is particularly busy.