COSTS ASSOCIATED WITH THE SALE/PURCHASE OF PROPERTY

by Nauwahl van Heerden • 3 MIN • 530 Words

COSTS ASSOCIATED WITH THE SALE/PURCHASE OF PROPERTY
Selling or purchasing a property is equally exciting and daunting. Ensure that you know what costs you will be liable for.

HERE ARE SOME GUIDELINES:

AS THE SELLER
  • Bond Cancellation Fees - This is the fee payable to the attorney who attends to the Cancellation of any current bonds registered over the property you wish to sell;
  • Advanced Rates and Services - In order for a Municipality to issue rates clearance certificate required for lodgement in the Deeds Office, the Municipality will (depending on the said Municipality) collect advanced rates and services, normally either for a period of four months or until the end of the Municipality's financial year
  • Levies- In order for the Body Corporate or Home Owners' Association (if applicable) to issue a levy clearance certificate, the Body Corporate or Home Owners' Association will collect levies a few months in advance
  • Compliance Certificates - This includes the fees payable for the inspections as well as any repairs. The certificates required are the Electrical Compliance Certificate, Water Compliance Certificate (only applicable to properties that fall under the City of Cape Town Municipality), Beetle Certificate, Gas Certificate and Electric Fence Certificate. (if applicable)
  • Estate Agent Commission - As agreed upon in the Deed of Sale.
AS THE PURCHASER
  • Transfer Fees - This is the fee payable to the attorney who attends to the transfer of the property from Seller to Purchaser
  • Bond Fees - Such fees include the fee payable to the Attorney who attends to the registration of the Mortgage Bond over the property as well as the initiation fee payable to the Financial Institution. (if applicable)
  • Rates Clearance Certificate Fee - The Municipality issues a certificate confirming that the rates and services are paid in advance.
  • Levy Clearance Certificate Fee - Likewise, the Body Corporate or Home Owners Association (if applicable) confirm that all levies are paid up to date on day of registration.
  • Levies - In order for the Body Corporate or Home Owners Association (if applicable) to issue a levy clearance certificate, the Body Corporate or Home Owners Association will collect levies a few months in advance.
  • Transfer Duty - Transfer Duty, calculated on the value of the property, must be paid to the Receiver of Revenue and the receipt is lodged in the Deeds Office.
  • Occupational Rent - Should date of registration and occupation not coincide, occupational rent will be payable as per the amount agreed to in the Deed of Sale, from date of occupation until date of registration.
AS THE PURCHASER WHO REQUIRES A BOND
  • Bond Registration Costs - This is the fee payable to the Attorney who attends to the registration of the bond over the property purchased to finance the purchase price.
  • Initiation Fee - The financial institution who grants the bond may ask for payment of this fee before registration of the property, although this is sometimes included in the bond to be registered.
  • Insurance Certificate Fee (for sectional title properties) - The Body Corporate's insurer will issue a certificate to confirm that the said unit is insured to the satisfaction of the Bond Holder.
FOR ANY FURTHER QUESTIONS, PLEASE FEEL FREE TO CONTACT ME ON 083 309 8967!!

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