Who Pays For What In The Sale And Transfer Process?
1. Agent’s commission
2. Penalty Bond Interest:
If 3 months‘ written notice is not given to the bank to cancel the Seller’s bond, a cancellation penalty is payable. It equates to approximately one month’s bond installment for each completed month of notice not given (or pro-rata thereof).
3. Bond Cancellation Fee:
a. Fees range from R4 000 to R5 000.
b. If more than one bond is canceled, the fee increases as per the applicable sliding scale.
c. Note: it is still required to cancel the bond registration, even if the bond has a nil balance.
4. Rates and Services:
Any arrears, current amounts owing, and a 60-day advance collection amount.
5. Certified Copy of Misplaced Title Deed:
Fees range from R2 500 upwards, depending on the number of deeds to be replaced.
6. Levy Amounts Owing to Body Corporate or Homeowners’ Association
7. Compliance Certificates:
a. Electrical (in order if issued under 2 years ago and no changes made to the installation)
b. Beetle (if applicable)
c. Plumbing (if applicable)
d. Gas (if applicable)
e. Electric fence installation (if applicable)
8. Any Repairs Agreed to in the Contract
a. Financial undertakings for Seller.
b. Bridging finance for Seller.
c. Tax directive from SARS (withholding tax scenario).
d. Repatriation of funds.
e. Foreign investment abroad.
1. Transfer Costs:
a. Conveyancing fees, as per tariff.
b. Transfer duty.
c. No transfer duty is payable if the Seller is VAT registered and the sale forms part of the Seller’s vatable enterprise.
d. Purchase price will either be recorded in the contract as inclusive or exclusive of VAT.
e. The account to the Purchaser may include the cost of obtaining a homeowners’ association’s consent to transfer.
f. Cost of a rates clearance certificate.
g. Costs of a levy clearance certificate (in sectional title transfers).
2. Bond Costs (if registering a bond)
3. Conveyancer’s Certificate RE Title Restrictions:
May be required if the Purchaser intends subdividing or renovating.
4. Occupational Rental:
a. Applicable if the Purchaser moves in before transfer.
b. Always try and provide for a figure in the Agreement of Sale, even if occupation is on transfer.
If the agreement does not oblige the Seller to deliver copies of approved plans, the Purchaser has to incur costs to obtain them.
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