ARAUJO Attorneys

Q: Once my property has been sold what costs should I expect as the seller?

A: When it comes to the transferring of property from seller to buyer, most of the costs are for the buyer’s account, with only a few for the seller’s account which can be paid from the proceeds of the sale on registration. Firstly, the seller will need to settle his existing bond from the proceeds of the sale. Secondly, the seller also pays an estate agent’s commission plus VAT, which is deducted off the proceeds. And lastly, the seller is liable for the cost of any clearance certificates issued (this includes initial inspections plus any repair work needed). Sellers will also need to keep their rates and levies bills up to date until the property transfers to the new owner.

Q: I have a deposit saved, but what other costs should I anticipate when buying a property?

A: A buyer who is financing their property purchase through a bank will get two accounts to pay fairly early on in the process: The bond registration costs (calculated based on the size of the bond being taken); and the transfer costs (calculated based on the purchase price). Included in the transfer costs are amounts for: Transferring attorneys fee (governed by law society tariff); transfer duty (payable to SARS) although properties under R900 000 are exempt from this; rates and levy clearance certificate fees; three months advance rates; one month advance levies; plus a few miscellaneous costs for deed searches, postage and petties, and deeds office fee, etc. Buyers should also ask their estate agents if the property they are buying attracts any additional fees they should be aware of (like when there is a homeowners’ association).