Oftentimes, first time and even seasoned sellers are not prepared for the costs associated with selling their homes. To make sure you are prepared for the sale of your home we have compiled a list of some of the typical costs that you can expect when selling your home.
1. ESTATE AGENT’S COMMISSION:
When the Seller appoints an Estate Agent to market the property for sale the Seller must factor the commission amount payable to the Estate Agent into the eventual costs that will be payable by the Seller. This amount will be deducted from the proceeds of the purchase price due to the Seller upon the successful registration of transfer of the property into the Purchaser’s name.
2.BOND CANCELLATION COSTS:
If the Seller’s property is bonded, the Seller must make provision for payment of the Bond Cancellation Attorney’s costs to attend to the cancellation of the mortgage bond. The Bond cancellation Attorney is appointed by the mortgagee bank, their costs are payable by the Seller in advance.
3.RATES CLEARANCE CERTIFICATE COSTS:
Properties including sectional title units are rated by the local Municipality. The Sellers appointed Conveyancer is required to apply to the relevant municipality for rates clearance figures in order to obtain a rates clearance certificate, this certificate is required for your appointed Conveyancer to lodge the transfer at the relevant Deeds Office.
In order to obtain such a certificate the appointed Conveyancer will request rates clearance figures from the Municipality and provide them to the Seller. The Seller will be required to make payment of amount requested by the Municipality. The Seller should make provision for payment of an amount that would cover an amount equal to approximately three to five months of rates and taxes in advance. In the event that there are arrears over the property an additional amount would be payable by the Seller, the past two years of arrears rates and taxes are taken into account for purpose of obtaining a rates clearance certificate.
4.LEVY CLEARANCE CERTIFICATE COSTS:
If the property is situated either within a complex or a gated estate, the Seller will be required to obtain a levy clearance certificate in order for the appointed Conveyancer to lodge the transfer at the relevant Deeds Office. The appointed Conveyancer will apply for such certificate on the Seller’s behalf approximately one to two months prior to prior to lodgement of transfer in the Deeds Office. The Seller should make provision for an amount that would cover the administration charges of the Managing Agent to issue the levy clearance certificate, as well as an amount that is equal to one to two months in advance in respect of levies. If there exists over the property arrear levies, fines or charges the Managing Agent will require that the arrears are settled by the Seller prior to a levy clearance certificate being issued. Such certificate is required by the appointed Conveyancer to lodge the transfer at the Deeds Office.
5.ELECTRICAL COMPLIANCE CERTIFICATE:
It is the obligation of the Seller to provide the appointed Conveyancer with an electrical compliance certificate that is not older than two years. The Seller will be required to appoint an electrician to issue such a certificate, if the property to be sold does require additional electrical works, the Seller would be required to make payment of the costs of the repairs, as well as the costs of the electrical compliance certificate, in order for the electrician to issue an electrical compliance certificate.
6.ELECTRIC FENCE COMPLIANCE CERTIFICATE:
If the property is free standing and is not located within a complex or an estate, and has an electric fence, the Seller will be required to obtain an electrical fence compliance certificate, in addition to the electrical compliance certificate. A special certification is required to issue an electric fence compliance certificate.
7.CERTIFICATE OF CONFORMITY IN RESPECT OF GAS:
Since 1 October 2009, it has become a requirement for a Certificate of Conformity in respect of gas installations to be issued if there is a gas installation on the property to be transferred, this would include a liquid gas appliance, i.e., built in gas fires or braais, gas stoves, hot water systems and the like on a property. The Seller will be required to obtain a gas compliance certificate that is not older than 6 months.
