As the cost of selling property in South Africa can be significant, every owner should consider and estimate the charges that are associated with a sale before the final decision to sell the property is taken. Taking these charges into consideration, could be the difference between a successful sale and a financially detrimental one. Keep them in mind, know what they are and ask should you not understand! As a guide, the following are the major ancillary costs of selling property:
Estate agent’s commission– The agents charge a fee which is usually between 5 – 8% of the property selling price, plus VAT.
Bond cancellation costs– These costs are charged by the attorneys nominated by the bank when you cancel your bond after selling your property.
Early bond cancellation (penalty) fees– If you intend to sell your property and cancel the bond, then you should let your bank know in advance and in writing. Failing which, the bank may decide to charge you a fee for cancelling your bond early.
Upfront contribution towards municipal rates and taxes, services and levies– These charges must be paid upfront for clearance certificates to be issued by the relevant authorities.
Compliance certificates– These certificates are needed for a transfer to take place which are usually not expensive, but if problems are discovered by the relevant professional you will also have to pay for the repairs before the certificate can be finally issued.
Capital gains tax– This tax could apply if you sell your property at a profit. Just keep in mind the R2 000 000 limit on “primary residence” sales.
These costs could be substantial and sink every seller’s dream of making the most out of their property investment. A Conveyancing Department should be at your beck and call to answer to these charges, fees and ancillary costs and give you the correct advice. Therefore, ask your Conveyancers before making the call and mitigate your risk.
The effect of a sale on a management mandate agreement Is the purchaser of a property with a tenant in the premises duty-bound to perform in terms of the former landlord’s obligations towards the lease agreement, or in terms of a mandate in the case of a management mandate agreement? The lease agreement remains in […]
Obtaining court dates from the High Courts in Lockdown Level 1 As much as we, as legal practitioners, have got used to attending to court virtually and working with the new online court system, called CaseLines; the legal profession is still experiencing extreme difficulties. The latest court directives allow us to issue new proceedings at […]
Does Section 4(5)(c) of the Rental Housing Act contradict the principle of huur gaat voor koop? The legal principle of huur gaat voor koop was established within Roman Dutch Law and has, since the adoption of Roman Dutch Law as the foundation of the South African legal system, been one of the cornerstone principles governing property […]
Why were these regulations declared unconstitutional by the High Court? What does this mean? On 2 June 2020 the High Court handed down a judgement in the matter of De Beer v COTGA. News of this judgement spread in the media and on social media like wildfire, with headings like “Lockdown Regulations Unconstitutional”; as much […]
LEVEL 4 REGULATIONS ON EVICTIONS The Alert Level 4 Regulations were released to the public explaining exactly what Level 4 will entail for the South African public. One of the regulations, specifically Regulation 19, deals with the prohibition of evictions and has a big effect on our property industry. The Regulation reads as follows: A […]
No regulations of any kind have been implemented to authorise tenants to refrain from paying rent. The global pandemic brought about by the COVID-19 virus has thrust South Africa into one of the most unfamiliar and uncertain times in our history, the likes of which never before experienced. Government has, in response to the virus, […]