4. RELATIONSHIP BETWEEN CONVEYANCER AND PARTIES TO TRANSACTION

A conveyancer should be mindful and take great care to avoid a conflict of interest at all times,especially when attending to both the transfer and the bond registration.

4.1. Relationship with the seller

4.1.1. In most instances, the seller's attorney will be nominated to attend to the transfer of the seller's property. It is therefore the primary duty of the conveyancer to protect the interest of his client seller at all times.
4.1.2. Upon receipt of an instruction to attend to a transfer, contact the seller to acknowledge receipt of the instruction and explain to him/ her the legal process to be followed to finalise registration of transfer.
4.1.3. Highlight to the seller all clauses contained in the deed of sale which could have a detrimental impact on the transfer i.e. suspensive conditions, especially those referring to the prior sale of the purchaser's property.
4.1.4. Keep the seller informed of progress.
4.1.5. Pay particular attention to the seller's bond settlement amount and warn him/ her timeously of any penalty interest, notice periods or other administrative charges to be levied against cancellation of the bond which might increase the amount beyond the seller's expectations.
4.1.6. Obtain the seller's permission before issuing any guarantee or undertaking on his/her behalf.
4.1.7. Endeavour to cause transfer to be registered on the date stipulated in the deed of sale or as close as possible thereto.
4.1.8. Ensure that the seller complies with all his/ her obligations in the deed of sale and remind him/ her thereof timeously in order to avoid delays to the registration of transfer.
4.1.9. Attend personally on the seller when he/ she calls to sign the transfer documents and explain to him/ her the nature and purpose thereof.
4.1.10. Prep the deed of transfer and supporting documents carefully, prior to lodgement in the Deeds Office,to minimise the chance of rejection.
4.1.11. Inform the seller of registration of transfer in his/her name on the same day of such registration and account for finances relating to the transaction within two working days after registration.
4.1.12. Members should note that, unless the member had the permission of the client, reporting on the progress made with a transaction should not be done to the estate agent, which would be regarded as a breach of confidentiality/privilege applicable to the attorney-client relationship.

4.2. Relationship with the purchaser

4.2.1. Having regard to the primary duty to the seller, the conveyancer nevertheless has a duty towards the purchaser who must be dealt with forthrightly and courteously and advised if there is any abuse of rights by the seller.In the event of a dispute between the seller and the purchaser, inform the purchaser that your primary duty lies in protecting the interest of your client, the seller, and, in the event of the dispute not being amicably resolved,the purchaser should consult his/ her own lawyer.
4.2.2. Contact the purchaser immediately upon receipt of instructions to attend to the transfer and introduce yourself.
4.2.3. Inform the purchaser of his/ her obligations in terms of the deed of sale and, in particular, explain to him/ her the legal consequences of the material conditions.
4.2.4. Call upon the purchaser to sign the transfer documents as early as possible after receipt of instructions and attend on him/ her when signing personally to explain to him/ her the nature and purpose of the documents which require signature.
4.2.5. Explain to the purchaser how the transfer costs are calculated and when payable. Also explain the obligation to pay municipal rates and services or levies to a body corporate or Home Owners Association.
4.2.6. Call for the purchaser's guarantee in respect of the purchase price or balance thereof timeously,as stipulated in the deed of sale.
4.2.7. Invest all moneys paid by the purchaser towards the purchase price in an interest bearing trust account in terms of Section 78(2A) of the Attorneys Act, as is normally provided in the agreement of sale or, if not, with the written consent of the purchaser as stipulated in the said Act. Ensure that the requirements of the Act are complied with and remember that you have a duty of care in this regard.
4.2.8. Keep the purchaser fully informed as to progress.

4.3. Relationship with the mortgagee

4.3.1. In most cases, the mortgagee is your client, ie a bank or financial institution instructs you to attend to the registration of a mortgage bond in its favour.
4.3.2. On receipt of the bond instruction, immediately acknowledge receipt thereof.
4.3.3. Peruse the instructions to ascertain what conditions imposed by the mortgagee should be complied with prior to registration of the bond.
4.3.4. Make sure that you are familiar with the administrative process required by the mortgagee for the registration of its bonds, in particular, reporting requirements and highlighting any potential problems that may cause a delay in registering the bond.
4.3.5. You should comply with all the requirements set by the mortgagee as far as computer hardware and software are concerned.
4.3.6. You should protect the interests of the mortgagee at all times. If demand is made for return of a title deed released by the mortgagee, you are obliged to immediately return the deed to the mortgagee.
4.3.7. Title conditions of the property to be bonded should be carefully perused and any detrimental condition immediately brought to the attention of the mortgagee.
4.3.8. Inform the mortgagee immediately of the registration of the bond and ensure that funds are only released on behalf of the mortgagee in accordance with the authority for payment and guarantees and or undertakings issued.
4.3.9. Attend to delivery of all securities to the mortgagee, without delay, after finalisation of transfer.

4.4. Relationship with the mortgagor

4.4.1. Although the mortgagor is normally not your client, it is your duty to look after his/ her interests in respect of the bond to be registered.
4.4.2. Contact the mortgagor as soon as possible after receipt of the bond instruction and introduce yourself. Explain to mortgagor the process to be followed in having the bond registered.
4.4.3. As soon as the bond documents have been drawn, call on the mortgagor to sign same.
4.4.4. Attend personally on the mortgagor when signing the bond documents and explain to him/ her every aspect of the documents he/ she is about to sign. In particular, you should highlight all detrimental conditions contained in the bond documents eg. Notice periods for the cancellation.
4.4.5. Explain to the mortgagor how bond costs are calculated and when payable.
4.4.6. Assist the mortgagor in all respects to meet the conditions of grant of loan imposed by the mortgagee.