Clients are often taken aback when they receive a proforma statement detailing the conveyancing costs for transferring immovable property or registering a mortgage bond.
Beyond the conveyancing fees, the additional expenses can be equally daunting. This guide provides an overview of the anticipated costs for both sellers and purchasers, ensuring you are well-prepared for your property transaction.
For the Seller:
- Existing Bond Settlement: If there is an existing bond registered over the property, the seller is responsible for settling the bond cancellation figures as issued by the relevant financial institutions. Bond cancellation attorney fees as well as the Deeds Office registration fees are also for the seller's account.
- Estate Agent's Commission: The seller is generally liable for agreed the estate agent's commission.
- Rates Clearance: The Conveyancer must apply for rates clearance figures from the relevant Municipality. These figures are typically calculated two to three months in advance, and the seller is responsible for settling these amounts to obtain the mandatory rates clearance certificate for the Deeds Office.
- Compliance Certificates: All necessary compliance certificates (such as Plumbing, Electrical, Gas, etc.) required under the Offer to Purchase are for the seller's expense. Should any additional works be needed before these certificates can be issued, the associated costs must also be borne by the seller.
- Sectional Title Levies: In transfers involving a sectional title unit, the seller must settle the body corporate levy figures prior to the issuance of the mandatory levy clearance certificate.
- Home Owners' Association Fees: Where applicable, any levies required by a Home Owners' Association (HOA) prior to granting consent are the responsibility of the seller.
For the Purchaser:
- Transfer Statement Settlement: The purchaser is responsible for the transfer fees, which are tariff-based and calculated on the purchase price or value of the property together with the Deeds Office registration fees, SARS transfer duty application fees and ancillary administrative fees and disbursements reflected on the statement of account.
- Transfer Duty: In terms of the Transfer Duty Act, if the purchase price or property value exceeds R1,100,000.00 and the transaction does not fall within SARS' exemptions, the purchaser is liable for the payment of transfer duty.
- Bond Registration Costs: Should the purchaser be obtaining a bond to finance the purchase of the property, the purchaser shall be responsible for the payment of the bond registration costs.
- Levy clearance certificates and Home Owner's Association consent fees: In the event that a levy clearance certificate must be issued by the body corporate or a Home Owner's Association consent must be furnished, the purchaser is liable for the cost of issuing the levy clearance certificate or consent.
Additional Considerations
This overview covers the primary costs associated with property transfers and bond registrations. Further expenses may arise if an original deed of transfer is missing and a duplicate must be obtained, or if an error in the existing deed requires rectification prior to registration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
