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 Segment, 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 a 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, and as the contract is signed between Korbitec and the seller, the conveyancer incurs no additional expenses.
“Not only is this service a cost and risk-free value-add for attorneys, but it represents a negligible expense for sellers,” explains van Wyk. “Sellers will be required to pay a once-off initiation fee of R280, after which they will be charged at a market-related interest rate. Based on the average rates clearance period of six weeks, this results in an total cost of just R500.”
Korbitec’s Payment Solutions system is the perfect tool for sellers in need of financial assistance, as well as for those who wish to expedite the sale of their property. For more information, please contact Korbitec's Customer Service Centre (CSC) on 0861 144 678.