There are costs involved – things that have to be paid when a property is transferred.
If you are the seller:
Bond cancellation fees – these are paid to the attorney who attends to the cancellation. A further tip here: when you place your property on the market let your bank know, and advise them when the sale is made that the bond will be cancelled so that they don’t add a “penalty” bond cancellation interest amount to your bill!
Estate agent’s commission – this is your responsibility if they have successfully negotiated a sale on your behalf.
Compliance certificates – the seller has to provide electrical, beetle, plumbing, gas, and electrical fence certificates that indicate all these items are in good order and comply with the current regulations and installation standards. A further tip here: some municipalities are starting to request plans of the properties too in an effort to clamp down on illegal structures having been erected.
Municipal taxes – all arrear and advance municipal taxes and levies need to have been settled plus any levies or fees payable to bodies corporate or home owners associations.
Relocation costs – sometimes overlooked, this is an expense all sellers need to factor in to their calculations.
Capital Gains Tax – may be payable in certain circumstances, your attorney or accountant will be able to clarify your specific situation.
If you are the purchaser:
Transfer fees – payable by you over and above the purchase price and calculated in accordance with the price or market value of the property.
Transfer Duty – this is payable to SARS but this only kicks in if the purchase price exceeds R600,000.00 and is a percentage of the purchase price.
Disbursements – payable to your attorney for various services he provides like collecting clearance certificates in accordance with the FICA Act.
Bond costs – payable to the Bond Attorney when bond finance is required, this can also include an “initiation fee” you will have to pay to the financial institution.
I suggest you view all the above as a guideline only – each sale is different (while there might be similarities) and all terms and conditions may vary according to what has been agreed upon at the time the Agreement of Sale or Offer to Purchase is finalised. I would always advise you allow your attorney to scrutinize your documents and assist you before you commit yourself to a sale or purchase.
Contact us at IGrow Wealth Investments – our team and I will help you on the road to achieving the success you deserve.
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