Page 39 - Nexia SAB&T Property & Tax Guide 2022

◆ Deeds office /registration fees – a fee which varies dependent on purchase
price /value of property.
◆ Sundry charges – may include posts and petties payable to the transferring attorney,
valuation certificates – a disbursement to the local authority to obtain valuation and
rates clearance certificate – which varies depending on the local authority, electronic
documentation generation fee costs, e-VAULT fees, deeds office search fees, a
home-owners consent fee, FICA costs, and a transactional billing fee.
◆ Occupational rental – where the buyer takes occupation before registration of transfer
of the property takes place, occupational rental is payable as per agreement and
usually prior to and adjusted on registration of transfer.
TYPICAL COSTS OF SELLING
◆ Estate agent’s commission – Commission rates are calculated as a % of the gross
purchase price and should be negtiated 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, plumbing and gas certificates – the seller
will be responsible for any repairs required before such a clearance certificate can be
issued. The beetle inspection certificate may be required by inclusion in the contract
of sale (KZN and Cape Provinces). The electrical inspection certificate is required to be
obtained by the seller in terms of legislation – the Occupational Health and Safety Act
(85 of 1993) – all provinces.
◆ Bond cancellation fees – to cancel an existing bond. Sellers should be aware that they
need to give their financial institution 90 days notice of their intent to sell and in turn
cancel their bond finance to avoid early termination penalties.
◆ Rates and taxes – the seller is normally liable to pay rates and taxes and utilities
(levied by the local authority) up to the date of transfer. This may involve paying a
60 days rates in advance (Cape Town), payable to obtain clearance before registration
of transfer (can vary from agreement to agreement). The seller may then claim a refund
from council for any amount overpaid, covering the period after registration of transfer.
◆ Electrical System Fence Certificate – Usually this will be provided for in sale
agreements concluded after 1 October 2012, which in most cases, will require the
seller to bear the cost of ensuring compliance with specifications, together with the cost
of obtaining the compliance certificate.

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