Who pays for what?

In every property transaction there is a number of variable costs that need to be considered by both Seller and Purchaser. In the instance of a residential property transfer, these costs consist of those necessary to transfer the property from the Seller to the Purchaser. To make sure you are well informed, we have hereunder summarised the costs a Seller and Purchaser can expect to encounter in a simple residential property transfer.

SELELR:

• Bond Cancellation Fees (if applicable);

• Estate Agents Commission (if applicable);

• Payment of the Rates Clearence Figures (payable to the Local Authority);

• Any arrears amounts owed to the Local Authority in respect to rates and taxes as well as a 90 day advance payment to allow for the transfer process to take place.

• Payment of Levy Clearence Figures (payable to the Homeowners Authority); and

• Any arrears amounts owed to the Homeowners Association or Body Corporate in respect of levies as well as a 60 – 90 days advance payment to allow for the transfer process to take place.

• Payment to obtain Certificates of Compliance (Electrical, Gas and Solar).

• Electrical Compliance Certificates;

• Electrical Fence Compliance Certificates (if applicable);

• Gas Compliance Certificates (if applicable)

• Plumbing Compliance Certificates (if applicable);

• Beetle Compliance Certificates (if applicable).

These Certificates may not be older than 1 year and are required to ensure that the property’s various instillations are up to code and in full compliance with the applicable standards. Each Certificate typically costs R1 000.00.

• Other Costs

• Financial undertakings, bridging finance or loan agreements;

• Tax Directives from SARS (Withholding Tax on international transactions);

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  Lost title deeds or correction of errors with existing title deed conditions etc.

PURCHASER:

• Transfer Fees

• Conveyancing Fee (as per set tariff);

• Transfer duty (payable on the purchase price to SARS);

• Rates Clearence Figure Request to Local Authority (to make provision and allow for the transfer to take place, the Seller will pay the amounts due);

• Levy Clearence Figure Request to the Homeowners Association or Body Corporate (to make provision and allow for the transfer to take place, the Seller will pay the amounts due);

• Deeds Office Fee (processing transfer and registration);

• Bond Registration Costs

• The Purchaser will have to pay the costs to register a bond over the property where the purchase is financed by a loan granted by a banking institution.

• Occupational Rent

• It may be the case that the Purchaser takes occupation of the property prior to the registration of the transfer, in this instance the Seller and Purchaser should have made provision for occupational rent payable in the Sale Agreement. This will be paid from the date of occupation by the Purchaser (if not already in occupation) until the date of Registration in the Deeds Office.

It may be the case that there are additional costs to those mentioned above, these may arise due to several reasons, including lost Title Deeds, errors or issues with existing Title Deed conditions and servitudes or even issues arising from the constitution of either Seller or Purchaser in the case of either being a Company or Trust.