Transferring property in South Africa involves several costs, and both sellers and buyers have specific financial responsibilities. Knowing these costs upfront can prevent delays, legal issues, and unexpected expenses.
Costs the Seller Is Responsible For
Sellers must settle certain costs before the property transfer can be finalized:
- Rates Clearance Figures: Includes municipal rates, agent fees, and the Rates Clearance Certificate.
- Levy/Homeowner’s Association (HOA) Clearance & Certificate: Any outstanding levies must be cleared.
- Bond Cancellation Attorney’s Fees: Covers the cancellation of any existing mortgage bond.
- Agent’s Commission: Usually paid from the proceeds of sale on registration. If you use sellhome.co.za to sell your home privately, you don’t pay this fee.
- Electrical Compliance Certificate (ECC): Required prior to lodgement unless the estate agent handles it.
- Additional Compliance Costs: Includes electrical fence inspections and gas compliance inspections if applicable.
Costs the Buyer Is Responsible For
Buyers also incur specific costs, typically outlined in a Proforma Account emailed before lodgement at the Deeds Office:
- Transfer Duty (SARS): Applicable if the property is above R1 million.
- Fee for Submitting Transfer Duty: Administrative fee associated with SARS.
- Transfer Fees: Paid to the transfer attorney.
- Deeds Office Fees: Includes search and registration fees.
- Postages and Petties: Document handling and administrative costs.
- FICA Identification & Verification Fee: Required by law for all buyers.
- Document Generation Charges: Covers preparation of legal documents.
- Lodging Agent’s Fee: Charged if a lodging agent is used.
Key Takeaways
Understanding property transfer costs in South Africa ensures smooth transactions. Sellers and buyers who are aware of their obligations can avoid delays, unexpected expenses, and legal complications. Always communicate clearly with your estate agent and transfer attorney to ensure all costs are settled promptly.
