Too often, law reports show that property sale disputes could have been prevented if one expert had been used to attend to the entire property transaction.  I.e., marketing the property, closing the sale, concluding the sale agreement, transferring the property, and finally dealing with the proceeds of the sale.

There is no better person than an attorney or conveyancer to handle both stages, professionally and cost-effectively, assisted by a competent team of property professionals.

This blog will demonstrate that attorneys can be successful property practitioners or estate agents within their own legal practice.

The incomes of many conveyancing attorneys in South Africa are under threat

Here’s why:

• Some conveyancing attorneys are at the mercy of estate agents and mortgage originators to receive transfer and mortgage instructions.
• Some estate agents and mortgage originators are requesting cash back payments for transfer and mortgage instructions.
• The Deeds Office’s Electronic Deeds Registration System (EDRS), once fully operational, will have an impact on the revenue of conveyancers close to the Deeds Office acting as correspondent attorneys for lodgement.
• Attorneys who ask estate agents to sell a property flowing from a divorce or deceased estate cannot legally share in the commission a Property Practitioners Regulatory Authority (PPRA) estate agent earns.

Attorneys can take charge of their own destinies and ensure that they are directly responsible for their own income, earning extra sales commission revenue.

Attorneys and candidate attorneys with valid Legal Practice Council (LPC) Fidelity Fund Certificates issued by the PPRA are exempt from the registration process at the PPRA and can even appoint attorney estate agents to work for them and generate and earn sales commissions.

 Benefits of attorneys selling properties

• Income flow:  Substantially increase your income.
• Simplicity:  There are many legal pitfalls in a property transaction.  Law reports often show that property sale disputes could have been prevented if a single expert had been used to attend to the entire property transaction.
• Expert legal advice:  Attorneys can provide expert legal advice throughout the entire process, from drafting bespoke sale agreements to handling legal disputes that may arise.
• Protection and control:  Attorneys offer clients greater control over the sales process and protect against legal pitfalls and disagreements.
• Integrated services:  Attorneys can offer a seamless service that can include legal advice, marketing, sales, and the eventual property transfer.
• Accountability:  Attorneys are solely accountable to their respective law societies and the LPC, providing an additional layer of oversight and public protection.

Which attorneys would benefit from selling properties?

• Conveyancing attorneys interested in reinvigorating their practices and earning an extra income.
• Litigation attorneys who may have to sell their clients’ properties.
• Divorce attorneys who may need to assist their clients with selling a property flowing from a divorce matter.
• Deceased estate administrators who need to assist an executor in selling a property in the course of winding up an estate.

 Conditions for attorneys selling properties

• Exemption from the Act:  Attorneys are exempt from the regulations of the Property Practitioners Act as long as they are acting within the scope of their legal profession.
• Operating from legal premises:  They must conduct their property sales activities from their established legal practice premises.
• Clear identification:  Any marketing materials must clearly identify their legal practice, logo, and slogan to ensure they are perceived as attorneys, not just general estate agents.

 Conclusion

If you aspire to become a successful property practitioner within your own law firm, register for a recording of How attorneys can sell properties – an information session today!

People also ask

Is it legal for attorneys to sell properties in South Africa?

Yes.  It’s legal for attorneys to sell properties in South Africa.  They are exempt from the Property Practitioners Act (previously known as the Estate Agency Affairs Act) under specific conditions, such as operating from their legal premises and clearly identifying their legal practice in promotional materials.

 

About the authors

Meyer De Waal is a practising attorney and Director of MDW Inc.  He gained his estate and trusts expertise as a Senior Estate Controller at the Master of the High Court in Bloemfontein.

In 1993, he opened MDW Inc and practised as a conveyancing and estate expert in Cape Town, specialising in the administration of deceased estates and drafting of wills and trusts.

He was inspired to start Rent2buy, My Budget Fitness, Consumer Housing Education, and My Bond Fitness, as well as FLISP Assistance Service and Attorney Realtor Hub, from his company’s participation in raising funds and subsequently constructing houses in the Mfuleni township project.  This led to ground-breaking homeownership education programmes for African Bank employees and a homeownership education programme for a tenant base of almost 13,000 Just Property tenants.

Maartens Heynike is a practising attorney, notary, and conveyancer, and director of Heynike Inc. Attorneys in Johannesburg.

He obtained BCom (Law) and LLB degrees at the University of Stellenbosch and an LLM (Banking & Stock Exchange Law) at RAU (now the University of Johannesburg).

Currently, he is particularly involved in assisting attorneys to practise as property practitioners within their law practices and under the exemption in Section 1 of the Property Practitioners Act.

Maartens is the founder of 3%.Com Properties, which has been in business for over 20 years.

Daniel Heynike is a legal practitioner and entrepreneur, serving as the Operations Manager and a key role player on the management team at 3%.Com Properties. With extensive experience in property law and transactional efficiency, he has a deep practical background in both residential and high-value commercial property sales, managing every aspect from buyer sourcing to contract drafting.

At 3%.Com Properties, Daniel has received awards for Highest Deal Value and ranked in the Top 7 for Most Sales. He has mediated disputes in numerous residential transactions and possesses significant experience in large-scale construction arbitration matters, commercial litigation, and supporting company sales and acquisitions.

Daniel plays a crucial role in the development of advanced agent tools, including lead generation technology that empowers property and legal practitioners alike.  He also collaborates closely with the PPRA to ensure compliance and promote best practices within the industry.

A graduate of Stellenbosch University, Daniel combines his passion for justice and property law with his entrepreneurial spirit, driving innovation and compliance within the real estate sector.