WHO PAYS FOR WHAT?

BUYERS

1. TRANSFER COSTS

• Transfer Duty: Typically, payable to conveyancers about a month before transfer. Not applicable if the seller is VAT registered and the sale is part of their Vatable enterprise. The purchase price will be indicated in the contract as inclusive or exclusive of VAT.
• Additional costs might include obtaining park owners’ association content to transfer, rates clearance certificate, and, in sectional title transfers, a levy clearance certificate.

2. BOND COSTS

• If you’re registering a bond, you’ll incur associated costs.

3. TRIPARTITE AGREEMENT

• Might be necessary in certain cases.

4. CONVEYANCER’S CERTIFICATE REGARDING TITLE RESTRICTIONS

• This may be needed if you plan on renovating or subdividing the property.

5. OCCUPATIONAL RENTAL

• If you move into the property before the transfer is complete, you might need to pay occupational rental. It’s wise to agree on a figure in the Agreement of Sale, even if occupation occurs upon transfer.

6. PLANS

• If the agreement doesn’t require the seller to provide approved plans, you might have to cover the costs of obtaining them yourself.

SELLERS

1. TRANSFER COSTS AGENT’S COMMISION

2. PENALTY BOND INTEREST

• Failure to provide the bank with 3 months’ written notice to cancel the seller’s bond incurs a charge. This charge amount to approximately one month’s bond instalment for each completed month of insufficient notice (or proportionate to the duration).

3. BOND CANCELLATION ATTORNEY FEE (if property is bonded)

• Range: R4,000.00 to R6,000.00 (varies based on the number of bonds).
• Note: This fee applies even if the bond has a nil balance.

4. RATES AND SERVICES

• Include arrears, current amount owed, and a 120-day advance collection amount.

5. LEVY AMOUNTS OWED TO BODY CORPORATE OR PARK OWNER’S ASSOCIATION

6. CERTIFICATES

• Electrical (if issued under 2 years ago and no changes made).
• Beetle (if applicable).
• Plumbing (if applicable).
• Gas (if applicable).
• Electric fence installation (if applicable).
• Estimated cost: R750.00 to R3,000.00 per certificate without repairs (Please note this is an estimate).

7. CERTIFIED COPY OF TITLE DEED

• Cost approximately R8,000.00, if the original was misplaced by the owner.

8. RECTIFICATIONS ON THE EXISTING TITLE DEED

• Any changes or corrections to the existing Title Deed (if applicable)

9. ANY REPAIRS AGREED TO IN THE CONTRACT

10. OTHER

•  Financial undertakings for the seller.
•  Bridging finance for the seller.
• Obtain directive from SARS (withholding tax scenario).
• Repatriation of funds.
•  Foreign investment abroad.