WHO PAYS FOR WHAT IN THE SALE AND TRANSFER PROCESS?
Category News Letter
WHO PAYS FOR WHAT IN THE
SALE AND TRANSFER PROCESS?
SELLER:
AGENT'S COMMISSION
PENALTY BOND INTEREST
- If 3 months' written notice not given
to bank to cancel seller's bond
- It equates to approximately one
month's bond installment for each
completed month of notice not given
(or pro rata thereof)
BOND CANCELLATION FEE
(if property bonded)
- Fees range from R 4000 to R 5000;
if more than one bond is cancelled,
the fee increases as per the
applicable sliding scale.
- Note: still applies even if the bond
has a nil balance
RATES AND SERVICES
- Any arrears, current amounts
owing and a 60 day advance
collection amount
LEVY AMOUNTS OWING
TO BODY CORPORATE OR
HOME OWNERS ASSOCIATION
CERTIFICATES
- Electrical (in order if issued under 2 years ago
and no changes made to the installation)
- Beetle (if applicable)
- Plumbing (if applicable)
- Gas (if applicable)
- Electric fence installation (if applicable)
Approximately R3000 for all 5 if no repairs
necessary
CERTIFIED COPY OF TITLE DEED:
- Fees range from R 2000 upwards,
depending on the amount of copies required
ANY REPAIRS AGREED
TO IN THE CONTRACT
OTHER
- Financial undertakings for seller
- Bridging finance for seller
- Obtain directive from SARS
(withholding tax scenario)
- Repatriation of funds
- Foreign investment abroad
PURCHASER:
TRANSFER COSTS
- Transfer duty - payable to the conveyancers approximately a
month before transfer
- No transfer duty payable if seller is VAT registered and the sale
forms part of the seller's VATable enterprise. Purchase price will
either be recorded in contract as inclusive or exclusive of VAT
- The account to purchaser may include the cost of obtaining a
home owners' association consent to transfer
- Rates clearance certificate
- Levy clearance certificate (in sectional title transfers)
- Cost of rates clearance certificate
- Cost of levy clearance certificate (in sectional title transfers)
BOND COSTS (if registering a bond)
TRIPARTITE AGREEMENT (if applicable)
CONVEYANCER'S CERTIFICATE
RE TITLE RESTRICTIONS
- May be required if purchaser intends subdividing or renovating
OCCUPATIONAL RENTAL
- If purchaser moves in before transfer
- Always try and provide for a figure in the
Agreement of Sale, even if occupation is on transfer
PLANS
- If agreement does not oblige Seller to deliver copies of
approved plans, Purchaser has to incur costs
Author: STBB| Smith Tabata Buchanan Boyes
