The national backlog in obtaining rates clearance certificates is currently at an all-time high, something that has caused major delays in the finalisation of property sales throughout the country.
Korbitec recently announced the launch of their new Payment Solutions service, designed to expedite and simplify the property transaction process for sellers and conveyancers alike.
This unique service significantly reduces the hassle and delays associated with the settlement of rates clearance payments, by providing the seller with a credit which can be used to cover rates clearance and administration fees which typically arise during the course of a sale.
Applicants are approved in real-time for funding through Korbitec’s credit scoring system, which is based on their ability to pay back the loan from the proceeds of the sale.
Korbitec’s Payment Solutions service is easily managed through the attorney’s automated work-flow system, GhostConvey, which has been widely used by conveyancing attorneys to effectively assemble documentation and correspondence associated with property transfers for over 25 years.
The Payment Solutions service has been designed not only to reduce cash-flow pressure on the seller prior to the finalisation of the transaction, but also to allow for greater productivity on the part of the conveyancing attorney, something which Mari van Wyk, General Manager of Attorney Segments, believes will revolutionise the property transaction process.
“Once the initial sales document is signed, sellers will typically need to be contacted further during the process to provide funds to cover the rates clearance amount and administration fee,” explains van Wyk.
“This can put great financial pressure on the seller, who doesn’t yet have access to the proceeds of the sale, and can have a major impact on the speed of the process, as the attorney is required to request and further check funds, before performing up to two transactions per rates clearance certificate.”
“Korbitec removes all this hassle by pre-authorising funds on the seller’s behalf, which we then pay directly to the municipality once the rates application has been completed.”
The service requires no guarantees or undertakings from the attorney, as the contract is signed between Korbitec and the seller, incurring no additional expenses for the conveyancer.
“Not only is this service a cost and risk-free value-add for attorneys, but it represents a negligible expense for sellers,” concludes van Wyk.
Mari van Wyk, General Manager of Attorney Segments