Greyton property for sale information on the typical costs of buying a property, such as purchase price; transfer costs to be aware of and the typical costs involved with the selling of a property.
TYPICAL COSTS OF BUYING:
PURCHASE PRICE
• A deposit of the gross purchase price to the estate agent or conveyancer payable usually on signature of the deed
of sale by both parties or within 7 to 14 days from signature (usually 10%) (if applicable).
• The balance of the purchase price is lodged with the conveyancer prior to transfer, or is secured by way of a bank
guarantee.
• Over and above the purchase price, the purchaser should have the cash available to cover the transfer costs
(if this is not included in the bond) and the bond registration costs as follows:-
TRANSFER COSTS
Transfer duty exemption threshold increased to R600 000. This is good news to new buyers and should be taken advantage of as this is entirely to the benefit of property buyers. If you buy a property valued greater than R600 000, the breakdown is as follows:
• Value of the property that does not exceed R600 000: 0%
• Value of property that exceeds R600 000, but not R1 000 000.00: 3%
• Value of property that exceeds R1 000 000.00, but not R1 500 000: R12 000 plus 5% on the value exceeding
R1 000 000.00
• Value of property that exceeds R1 500 000: R37 000 plus 8% on the value that exceeds R1 500 000.
Transfer duty is always payable by the purchaser except where the seller is registered for VAT, in which event, transfer duty is not payable.
The other costs involved are Deeds Office fee and conveyancing fee, which is prescribed by the Law Society depend on how much the property costs. The conveyance attorneys’ rates are generally between 0.7% and 1.2% of the price of the house. The fee levied by the Deeds Office to register the deed to the property in your name, depends on the value of the property, and starts at R 70 per registration and the legal fees usually also includes Post and Petties which include all costs for postage's, admin fees, phones calls, etc.
Previously companies, CC’s and Trusts were charged at a flat rate of 8% on the entire purchase price for transfer duty, the above scale will also now apply to them as well as natural persons.
TYPICAL COSTS OF SELLING:
• Estate Agent's commission - commission rates are calculated as a % of the gross purchase price and should be
negotiated upfront with the agent. Sellers need to establish very clearly what commission an agent proposes to
charge before awarding a mandate and to ensure that the % agreed upon after any negotiation is written into the
mandate document (where applicable) and establish whether such % includes VAT.
• Beetle inspection, electrical inspection certificates - usually between R250 and R500 (plus VAT). The seller will be
responsible for any repairs required before such a clearance certificate can be issued. The beetle inspecation
certificate may be required by inclusion in the contract of sale. The electrical inspection certificate is required to be
obtained by the seller in terms of legislation (Occupational Health & Safety Act no 85 of 1993).
• Bond cancellation fees - to cancel an existing bond.
• Rates & Taxes - the seller is normally liable to pay rates up to the date of transfer. This may involve paying a 120
days rates in advance, payable before registration of transfer.
