DO’S
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Advise the Purchaser on the terms and conditions in the SPA, including the preamble. Do not assume your client is familiar with the clauses. For example, the existence of any encumbrances on the Property.
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Conduct a Land Search prior to the execution of the SPA. Advice the Purchaser NOT to pay a deposit to the Vendor until you are satisfied that the title is clear.
Advise or notify clients immediately of the existence of any encumbrances or notices of land acquisitions, for example, Gazette Notification, Charge, caveats, restrictions in title etc.
If there is a lapse of time between the Government Gazette and the actual registration of the notice with the relevant registering authority, the searches conducted will not reveal the acquisition.
Therefore, apart from conducting a search in the Interim Register, the solicitors should also conduct a search or enquiry with the Collector of Land Revenue in the Land Office concerned which would have revealed the notice of land acquisition.
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Conduct a Search at the Official Assignee’s/ Insolvency Office to ensure that the vendor is not a bankrupt.
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Lodge a Caveat preferably as soon as the SPA is executed and Purchaser pays the Vendor a deposit towards the SPA.
Safeguard clients’ interests on the property according to the terms and conditions in the SPA.
Lodge a caveat on the property pending the presentation for the transfer of ownership.
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Check with City Hall or Municipality to ensure that there are no arrears of outgoings (assessment, rates etc) and utility bills.
Advise your clients to file the relevant change of ownership with the Municipality.
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Safeguard Original Titles
Keep all original titles in a waterproof and fireproof safe.
Maintain an inventory of all documents in that safe and have a signing off procedure in place for removal/ return of the titles.
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Acknowledge Receipt of Sensitive Documents
When returning any important documents, for example, titles, to clients, the firm should obtain a written acknowledgement from the client that the document has been returned to them.
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Attend to Clients Personally
Ensure that the Advocate and Solicitor in charge of the file personally meets the clients and is present at all critical junctures of the transaction, for example, the signing of the sale and purchase agreement. DO NOT leave these tasks to the firm’s support staff.
DONT'S
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Breach the Duty of Trust whilst holding the stakeholders sum on trust for and on behalf of the clients.
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Misplace or Fail to return the ORIGINAL title deed to clients that was previously given or entrusted for registration of charge on the property.
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Assume All Letters of Undertaking are the Same. Ensure the firm has a strict policy regarding undertakings, its best that only a Partner is allowed to give an Undertaking.
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Assume Your Clients are Aware of RPGT. Highlight it to them and confirm in writing if you are required to assist them in filing their RPGT.
Most SPAs require the Firm to retain a portion of the sale price to pay RPGT that may be charged, do not give in to Vendor’s pressure to release this fund to him/ her before obtaining the relevant clearance.