Conference Resolutions - Centre for Conveyancing Practice

Chapter 5 - Power of attorney
Paragraph 2.2 Preparation and signing of the preparation certificate
Consents prepared by attorney, notary & conveyancer
Question Which consents, required for the performance of an act of registration as
envisaged by regulation 44 of the Deeds Registries Act, must be prepared by an
attorney, notary & conveyancer?
Resolution Only consents required for purposes of an act of registration and prepared by a
practising attorney, notary or conveyancer must contain a preparation clause -
(RCR20/2006).
Paragraph 2.3 Regulation 44A - Responsibility for correctness
Regulation 44A and CRC 7 of 2010: 10 Value of property
Question Will the preparing conveyancer be responsible for the correctness of the value of
the property? In some cases the Receiver of Revenue does not require a
valuation (e.g. divorce order). Will valuation certificates have to be obtained?
Resolution No, it is not necessary to lodge a valuation certificate. In the absence of a
transfer duty receipt reflecting the value of the property, the amount reflected in
the deed or document, based on the municipal valuation, will be accepted as
proof of the value of the property – (RCR40/2010).
Responsibility of conveyancer
Scenario If a bond is passed in favour of the trustee of an insolvent estate, the practice is
to accept it if it is for the balance of the purchase price (the resolution of the
trustees needs not to be lodged to ascertain whether the trustee or the curator
has the legal capacity to do so).
Question Is it not the duty of the registrar of deeds but rather the responsibility of the
conveyancer in terms of regulation 44A? What will the position be in a scenario
where an insolvent sold his property in June 2006 to his mother for R900,000,
and is thereafter declared insolvent in December 2006. His mother was the
applicant. The mother registered a first bond in favour of the trustee of the
insolvent estate in July 2007 for R190,000. The causa was not for the balance
of the purchase price.
Resolution It is not the responsibility of the registrar of deeds to determine the causa of the
bond and whether the trustee acts in terms of his powers. It is the
responsibility of the conveyancer to determine the validity of the
transaction - (RCR18/2007).
10 According to Chief Registrar’s Circular 7 of 2010, the consideration clause in a deed of transfer or application for
the transfer by means of an endorsement, must make reference to the value of the property where the purchase
price is not applicable. Such reference will serve as proof of the value of the property. It further provides that
where a transfer duty receipt contains a reference to both the purchase price and the value of the property, then
both purchase price and value must be reflected in the consideration clause of the deed of transfer or application
for a transfer endorsement. The reason behind the inclusion hereof, is that the deeds office fee is to be calculated
on the greater of the purchase price or the value of the property.
February 2012 Self-Study Deeds Course
10