17/09/2024
QUESTION: What costs are involved for the purchaser and seller in a property transaction, besides the purchase price?
ANSWER: Transfer duty- which is the tax levied on immovable property and these costs will be based on the purchase price. Note that no transfer duties are payable on an immovable property with a value under R1 100 000.
Transfer fees are always payable to the transfer attorney for the actual work to be done in order to transfer the property from seller to purchaser - petties and posts, lodging of documents etc. Bond registration fees are payable to the bond registration attorney for cancelling the bond or registering a new bond. However, these disbursements, duties or fees are more complex. They should be thoroughly discussed with a dedicated conveyancing HL Van Zyl Attorneys who will guide you through motions to successfully conclude the property transaction.
The buyer will be liable for the transfer duty, transfer fees and bond registration costs if a bond has been obtained. Further, costs for the seller's account will include the Certificates of Compliance and rates and taxes on the property still outstanding as well as bond cancellation where applicable and the property practitioners' commission where applicable. It is advisable to have a consultation with a property law attorney who will be able to provide quotations on costs in terms of the transfer of the property as well as give sound advice and projections on further expenses as mentioned for the parties to have a clear financial picture of the obligations they will face with the property transaction and be in a position to do financial planning with regards to the property transaction.
DISCLAIMER: The above should not be considered as extensive legal advice but rather as condensed guidance. For expert legal assistance, contact [email protected] or give our office a call!