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Who pays what when property is sold?

Who pays what when a property is sold?

A.             THE SELLER

Agent's Commission

The parties could agree in writing that the buyer will pay the commission, but then the buyer must be informed that he will also pay transfer duty on the said commission amount.

Settlement amount to the bank and the cancellation of existing bond(s) over the property

  • Please obtain the Home loan Account number  from the Seller
  • This will enable the transferring Attorney to call for the cancellation figures and Title Deed as soon as possible
  • This will also enable the transferring Attorney to give the formal 90 days' notice of intention to cancel to the bank (This works on a prop rata basis. The sooner the 90 days' notice is given to the bank the smaller the early termination fee to the bank will be, if the seller can not wait out the entire 90 days period)
  • Even if the bond has been paid up 100% it still needs to be cancelled at the Deeds Office.
  • The cost to cancel a bond is R2 351.00 for the 1st bond on the property, for each additional bond thereafter an additional R150 + VAT will be payable as well.
  •  All certificates  (The next  three are a must as same are required by law)
  • Electric Wiring Certificate
  • Electric Fence Certificate (if applicable)
  • Gas Appliance Certificate (if applicable)
Further optional Certificates;
  • Woodborer Certificate
  • Plumbing Certificate

 The parties may under special conditions in the OTP confirm in writing that the buyer will pay for all the above certificates ,should the seller not be willing to do so .

Pro-rata share of Rates and Levies (if Sectional Title)

  • The seller is responsible fro all rates on the property until date of registration (The same applies for levies in the case of a Sectional Title Scheme)
  • The seller will also be liable for any and all Special Levies raised prior to registration

B.             THE BUYER

  • All legal fees pertaining to the transfer, which include transfer duty to SARS if the purchase price is for R600 000,00 or more;
  • All legal fees pertaining to the registration of the bond (if applicable) NB PLEASE ALWAYS ASK YOUR BUYERS TO BUDGET FOR A POSSIBLE INNITIATION FEE TO THE BANK OF R5 700, 00.
  • 14% VAT will be charged on all transfer and bond fees payable to the duly appointed attorneys.

Pro rata share of the Rates

  • The purchaser will pay all rates from date of registration until the end of the financial year at the Municipality, which is always 30 June of each year.
  • Pro rata share of levies (if Sectional Title)
  • The purchaser will pay all levies from date of registration and will pay for ± another 2 months in advance.
  • The managing agents will also charge the buyer ± R600,00 to issue the attorney with a levy clearance certificate

Disbursements

On any transfer or bond file there will always be disbursement of not more than R1000, 00, this will include post and petties etc.

 

Occupational rental

Should the buyer take occupation prior to registration he / she will also pay occupational rent on a pro rata basis and on an amount as agreed upon in the Deed of Sale.

Deposit to Municipality

After registration the new owner will have to pay a deposit of ± R800,00 to the municipality to open the necessary municipal account.