The property transaction
Who is financially responsible for what between the Buyer and the Seller?
The Buyer is responsible for:
- Purchase Price of the property:
Whether in cash or by means of a bank loan and/deposit. - Attorney / Conveyancer's fees:
For the property transfer in the name of the Buyer. Fees are regulated and prescribed by the Law Society of South Africa.
- These fees also include expenses incurred by the attorney and deeds office registration fees and may also include bond registration fees should a bank loan be applicable to the transaction. - Transfer duty:
Property tax payable to SARS, based on the purchase price of the property.
- Note: NO transfer duty is payable on a purchase price of less than R900,000. - Rates & Taxes and/or Levies:
In all property transactions clearance certificates are issued for rates & taxes (Municipality) and/or Levies (For HOA and Body Corporates) to ensure that the Buyer takes ownership free from any historical debts associated with the property. The Seller is responsible for these fees, from date of application until date of registration. However, the Buyer is responsible for these fees from date of registration. - Homeowners insurance:
An insurance policy to cover the property against natural disasters, fire and often smaller repairs / replacement i.e. geysers, roof leaks, water leaks etc. - Moving / re-location costs
- Occupational Interest (Occupational Rent):
Only applicable if the Buyer takes occupation before the transfer.
The Seller is responsible for:
- Estate agent's commission:
anges anywhere between 5 and 8%. With 3%. Com Properties, you only pay 3% commission. - Conveyancer's fees:
For the bond cancellation, only if a bond was registered over the property. - Compliance certificates:
Electrical compliance certificates, and gas certificates (if applicable). - Rates & Taxes and/or Levies:
See above, the Seller is responsible for these fees, from date of application until date of registration.
Good news: We charge only 3% commission, plus VAT. Savings to both the Buyer and Seller!
| Purchase Price: R1 500 000 |
| Seller choosing 3%. Com Properties |
| 3% Commission VAT @ 15% Commission Market price + Commission Total |
: R45 000 : R6 750 : R51 750 : R1 500 000 : R51 750 : R1 551 750 |
With 3%. Com Properties, we can attend to the facilitation of all the above payments, under 1 roof.
One-Stop Service!
25 Jun 2018
Author Unkown