We understand that the process of selling a home can often come with unexpected costs that property owners may not be aware of. To ensure a smooth property transfer process without any payment delays, sellers must budget for these expenses.
Take control of your property sale by accessing our comprehensive list of costs that sellers must be aware of and account for.
- Bond Cancellation Costs
In cases where a bond has been registered over the property, the Financial Institution will appoint an attorney firm to handle the cancellation of the bond and the seller will be liable for these attorney’s fees.
- Compliance Certificates
Before a property can be transferred, all required compliance certificates must be in order. The onus is on the seller to get the electrical, gas, plumbing, and electric fencing certificates in order. The seller is also responsible for the cost of repairs on anything that needs fixing to obtain these certificates.
- Estate Agent Commission
The seller is responsible for covering the cost of commission due to the estate agent, which is typically expressed as a percentage of the property’s purchase price.
- City Council Clearance Certificate
The city council will issue a clearance certificate following receipt of the clearance figure, which will cover any unpaid balances on the account as well as rates and taxes for the next three months. The certificate’s issuance fee as well as the clearance amount must be paid by the seller.
- Body Corporate or Home Owner’s Association Clearance Certificate
A clearance certificate from the body corporate and homeowners’ association is also needed if the property is in a sectional title development or estate.
Both the administration fee and the Clearance Figure must be paid by the seller.
The following are additional expenses that might not always be necessary but that should be budgeted for. These expenses can only be determined after establishing whether the original title deed is available and after carefully perusing the title deed conditions.
- Should there be any errors on the existing title deed (incorrect name/identity number or error in the property description) – a Section 4(1)(b) Application for rectification of the title deed needs to be done.
- If the original Title Deed has been misplaced – a Regulation 68 (1) application is required to obtain a replacement Title Deed from the Deeds office.
- Where a sectional title unit was extended – a Section 24(6) Application is required to reflect the extension in the Deeds Office.
- Registration of a General Power of Attorney is required if one person is authorising another to sign on his behalf. For example, when a person is emigrating and appoints someone local to finalise his affairs.
- Removal of a Title Deed Condition – a Section 68(1) Application is required to remove the condition.
Don’t navigate property costs alone! Reach out to our expert team today for guidance and answers to your questions about buying and selling immovable property. We’re here to assist you every step of the way, ensuring a smooth and hassle-free experience.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)