Page 27 - Nexia SAB&T Property and Tax Guide 2025

◆ 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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