“Let’s get rid of the conveyancers”

Dear Trevor

I would appreciate it if you could please consider the following issues in your Budget Speech this year.

It is increasingly evident that ordinary South Africans are battling to get onto the property ladder. Please consider increasing the exemption on transfer duty from R500 000 to at least R1 million. This would assist prospective first time buyers to enter into the property market and facilitate the widening affordability gap. In addition, it will encourage activity at the bottom end of the market.

Please could you also assist potential home owners by abolishing the monopoly attorneys hold on conveyancing procedures in SA? I know it’s probably not your department but you should have some influence.

The restriction is no longer valid and adds to the costs and inefficiencies in the property market.  Free and licensed participation as property transfer agents would encourage the entry of accounting firms, estate agents and mortgage originators into this space. This, in turn, would improve efficiency and drive down costs. Although, be prepared for rigorous opposition from the lawyers whose vested interest in maintaining the status quo is enormous.

In the same vein how about some tax relief for mortgage payments? The property market is beginning to falter and, as the backbone of the consumer sector, I would urge active intervention. Surely, it is time for us to offer a tax rebate on monthly mortgage payments like other countries who have implemented this successfully. This move would address affordability issues, stimulate confidence in the sector and encourage home ownership – which is one way to entrench the middle class.

Finally, we really need a budget that reflects growth and job creation, as opposed to a morbid preoccupation with inflation. The country needs employment and I would rather see aggressive government intervention to stimulate the economy, even if this spending results in us remaining outside of the targeted inflation range of 3-6%.

Yours sincerely

Simon Stockley,
CEO, Integer Home Loans

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Trev, call in the Competition Commission Let's have a close look at all the collusion going on in the property industry. Mortgage originators owned by estate agents, backhanders, similar commissions, cozy agreements with conveyancers, group advertising agreements...the list is endless. Maybe . .more that would help reduce the cost of buying property. . .less by Bad Brad on February 12 2008, 15:55 Find this comment inappropriate? Report it

why r banks not dealing directly with home buyers? If there are kickbacks being paid to bond-originators, it stands to reason that banks are charging some folk more than they need to - scap this and pass on the savings by GungetsTuft on February 12 2008, 15:59 Find this comment inappropriate? Report it

I like your thinking Banks charge more because they have to pay extra mouths in the chain. by DungetsTuft GungetsTuft on February 12 2008, 16:05 Find this comment inappropriate? Report it

conveyancers Can't understand why fees for regsistering a bond is dependent on value of the bond. Does the attorney do less work on a bond under a R1m than say to R2m? by gutted on February 12 2008, 16:44 Find this comment inappropriate? Report it

And get rid of monopolistic estate agency practices And get rid of monopolistic estate agency practices and collusive pricing. WHAT value do they add? Zero. None. Zilch. by zonkee on February 12 2008, 16:23 Find this comment inappropriate? Report it

by It does not exist. You can sell your house yourself. Its your choice. on February 12 2008, 17:01 Find this comment inappropriate? Report it

Yes, you can sell yourself, but you still need a lawyer by 4u2nv on February 12 2008, 17:07 Find this comment inappropriate? Report it

by which part of .....monopolistic estate agency practices...you don't understand? on February 12 2008, 17:37 Find this comment inappropriate? Report it

monopolistic-please spell out by anonymous on February 12 2008, 17:39 Find this comment inappropriate? Report it

by ask Zonkie on February 12 2008, 19:14 Find this comment inappropriate? Report it

by WHY STOP AT CONVEYENCERS...LETS GET RID OF THE DEADBEAT AND DOWNRIGHT USELESS ESTATE AGENTS TOO on February 13 2008, 08:31 Find this comment inappropriate? Report it

I love my lawyer What would I do without him? by anonymous on February 12 2008, 16:03 Find this comment inappropriate? Report it

Remove exchange control to retain skilled people by anonymous on February 12 2008, 16:27 Find this comment inappropriate? Report it

by I agree with tax relief on mortgage interest, increasing thresholds for transfer duty, ending exchange controls, introduce proper REITS, tax relief on property security improvements, subsidies on green power solutions. on February 12 2008, 16:41 Find this comment inappropriate? Report it

yes, get rid of the conveying attornies, why must they get thousands just for drawing up some papers. they in terms of time spent, do the least amount of work. Tired of getting ripped off by monopolyies. goes for bread, milk, medicine and petrol by fedup on February 12 2008, 16:53 Find this comment inappropriate? Report it

So much for the free market Where was this dude when the market was inflating well beyond the level of affordability of most South Africans? Oh right he was counting his commission cheques without a care about whether anyone could actually afford their bond payments. I'm sure the . .more phrase "Don't worry next year you can take a mortgage advance" passed through his lips on many an occassion. Not that the market is peaked and headed down he comes kruiping up with his handstogether like a beggar at the robots. Remember folks: Privatise the profits and socialise the risks! http://capetownbubble.blogspot.com . .less by CT Bubble on February 12 2008, 16:59 Find this comment inappropriate? Report it

by Most of what the article recommends is available in that Free Market paradise of USA. on February 12 2008, 17:01 Find this comment inappropriate? Report it

by my heart will bleed lump custard for the conveyancers on February 12 2008, 17:06 Find this comment inappropriate? Report it

I wouldn't call the US a free market... ...if anything the market there is a massive Corporate Charity. Besides like you said, they have most of the recommendations implemented and their economy is still farked up. http://capetownbubble.blogspot.com by CT Bubble on February 12 2008, 17:07 Find this comment inappropriate? Report it

by wrong on most counts per usual. on February 12 2008, 17:35 Find this comment inappropriate? Report it

Your lack of an actual argument somehow doesn't strengthen your case by CT Bubble on February 12 2008, 17:56 Find this comment inappropriate? Report it

by Neither does your opinion count as a factual argument. on February 12 2008, 19:14 Find this comment inappropriate? Report it

Without explanation, your points are mostly pretty pointless by A statement without explanation is not a valid argument. At least CT backs up his points with added explanation. on February 13 2008, 00:50 Find this comment inappropriate? Report it

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by Simon -clearly not all there boet. why don't you tell us what the usual com of agent is on R1mil sale and what conveyancers fees are ??? too scared of course. agents=R70 000 (no risk) lawyer=R12 000 if lucky and takes all risk. Transfer tax is R25000. Agents just want to stuff up everything further. on February 12 2008, 17:07 Find this comment inappropriate? Report it

Wow, are those figures for real>? That's outrageous. R70 000 for the agents. Waht does the mortgage originator get? And is that money for the agent or the principal? by anonymous on February 12 2008, 17:09 Find this comment inappropriate? Report it

by Originator get 1-2% of bond so R20k no risk on February 12 2008, 18:54 Find this comment inappropriate? Report it

please explain what you mean no risk? by anonymous on February 12 2008, 18:56 Find this comment inappropriate? Report it

please explain what you mean no risk? by anonymous on February 12 2008, 18:56 Find this comment inappropriate? Report it

by WOW-those figures are for real . Just add up what chunk the agent,taxman and bond originators get and see the real picture. SIMON Why so silent? on February 13 2008, 08:48 Find this comment inappropriate? Report it

Title security is very important A bunch of shady estate agents working with the deeds office. A bad idea. by Edward on February 12 2008, 19:36 Find this comment inappropriate? Report it

agree tax rebate brilliant idea. by afzal osman on February 12 2008, 20:05 Find this comment inappropriate? Report it

by Freemarketman: TIP FOR TERROR: GET RID OF THE CENTRAL BANK !!!! on February 12 2008, 21:04 Find this comment inappropriate? Report it

BIG BUCKS FOR ADMIN DONE BY JUNIORS!!! WHAT A RIP!! by WHY CANT BANKS DO THE CONVEYENCING IN THEIR IN HOUSE LAGAL DEPT. CONVYENCERS ARE CROOKS on February 13 2008, 07:15 Find this comment inappropriate? Report it

Conveyancers are essential, but they should be paid for by the seller No two property deals are the same. Lawyers are important but I fail to understand why the buyer pays, yet the conveyancer acts in the interest of the seller. That system should change. by anonymous on February 13 2008, 09:00 Find this comment inappropriate? Report it

TREVOR MUST GO(with umbrella) Trevor is overrated and the product of good spindoctors and friendly press.Had the benefit of inheriting infrastructure from previous government and a booming world economy.Little to do with his own wisdom. by OJ on February 13 2008, 12:41 Find this comment inappropriate? Report it

Oj, you forgot to mention Trevor's clever squeeze. by Nicole on February 13 2008, 14:22 Find this comment inappropriate? Report it

Agreed - Trev Terror must go - he is a overrated incompetent!!! by agreed on February 14 2008, 08:10 Find this comment inappropriate? Report it

Taxes and property All the problems could be solved by abolishing all current taxes and moving towards a single Land Tax(Site Value Rating) system based on the unimproved value of land. by mark on February 13 2008, 10:20 Find this comment inappropriate? Report it

Laws made by lawyers to benefit their parasitic ilk In Australia one uses a licensed settlement agent. The fees are deregulated and 100% negotiable. Guess what ? it works. Parasitic lawyers in SA would never accept this. I can just hear the arguments ... it's a complex process ... best left to . .more professionals... One can also use a lawyer in Australia. Guess what? nobody does. At least they hardly do. . .less by Lord Max on February 13 2008, 15:00 Find this comment inappropriate? Report it

by Ever seen a REALLY rich lawyer - one who made money from practising law/conveyancing? Err no. Sure they are moderately wealthy, but the never get super rich. Focus on the other paraihs - estate agents and originators! on February 13 2008, 15:55 Find this comment inappropriate? Report it

Rich originators - yes, they are Especially the bosses. by anonymous on February 13 2008, 16:55 Find this comment inappropriate? Report it

Conveyancers make sure that there are no mistakes in your title deeds. Very important. by lad on February 14 2008, 06:49 Find this comment inappropriate? Report it

Get real Mr bond originator is either stupid or has an agenda when he wants lawyers out of the property transaction. Firstly he underestimates the value of the title deed, without which you don't own the property and the bank has no security for the loan - even if . .more you've paid over millions. Very few property transactions are simple and usually they're dependant on multiple transactions. Let's say Owner A sells property A, puts in a conditional offer on Property B, owner of B puts in conditional offer on Property C. Now the property C transaction cannot take place until the conditions on properties A and B have been met. It can get more complicated than that. You could have three banks involved, each only concerned about their financial interests. Of course, the estate agent is only interested in the comm. The attorney is the only independent party and all this for a measly R12 000? Scrap or sharply reduce transfer duty, I say. There's no reason for it. . .less by buffalobill on February 14 2008, 11:18 Find this comment inappropriate? Report it

agents 7% of the selling price is theft,he has a nerve to complain about the conveyancer.most agents try to sell down as this gets their comm quicker,maybe the buyer should pay them by Chris on February 14 2008, 11:44 Find this comment inappropriate? Report it

Estate agents Have been an agent for many years. Average comm is only 3.58% as 99.8% of purchasers offer below asking price & to fulfill your mandate (i.e. get the property sold) your comm gets cut. This % barely covers the enormous overheads e.g. advertising by Henry on February 15 2008, 08:56 Find this comment inappropriate? Report it

Mr. Stockley is obviously a very uninformed individual when it comes to conveyancing matters- I am shocked at his naive request to abolish conveyancers. Please aquaint yourself with the facts behind convayancing Mr. Stockley!!! Concerned . .more Professional Land Surveyor. . .less by anonymous on February 16 2008, 19:43 Find this comment inappropriate? Report it

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