Before you decide to sell you home, it is important to know what costs you, as the seller, will be liable for. Understanding this will assist you to determine your estimated proceeds from your property. This is particularly important when your intention is to acquire another home with the proceeds of a sale.
PLEASE NOTE: THIS IS SHARED FOR INFORMATION PURPOSES ONLY. KINDLY CONSULT WITH YOUR LOCAL CONVEYANCER IF YOU NEED MORE SPECIFIC DETAIL.
As the seller, you are liable for the following costs
Cancellation of your existing bond
- The bank that holds your home's deed as security for the payment of your bond, will not release theses deeds without a guarantee that the outstanding balance will be paid upon registration.
- The bank will instruct an attorney to handle the current bond cancellation on their behalf.
- The bank's attorney will charge a fee, payable by the seller, before registration.
Rates and / or Levy Clearance
- Prior to registration of the transfer of the property to the new owner, the Deeds Office will ask for proof that all your utilities are paid in full and up to date
- The transfer attorney will obtain the clearance figures from the municipality and the body corporate and home owner's association, if applicable.
Estate Agent's Commission
- An estate agent who markets and sells your house, normally works for a fee.
- The estate agent's commission will be payable from your proceeds, on the date of registration.
Electrical Compliance Certificate
- No transfer of ownership may take place without an electrical compliance certificate. (Occupational Health and Safety Act 1993)
- You are advised to obtain the certificate from your local electrician who will conduct thorough testing of all electrical ware on your property. You are advised to apply for the certificate once you decide to put your house on the market. This way you will have ample time to make electrical corrections beforehand, as it may become pricey if the electrician finds a matter of non-compliance and has to fix it.
- The seller pays for the certificate which is issued by accredited electricians only.
Other Possible Charges
- Electrical fence compliance certificate
- Gas installation compliance certificate
- Entomologist reports (in certain areas)
- Plumbing certificate (in certain provinces)
What can a seller do while they wait for their property to be sold?
- Ensure all your income tax is paid in full at SARS
- Ensure your rates account is up to date
- Arrange an Electrical Compliance Certificate/gas and electrical fence certificates
- Ensure all additions made to your property are on the plan registered with the municipality
- Calculate your estimated proceeds with the information at hand
- Discuss any uncertainties with a local transfer attorney.
When is Capital Gains Tax payable by a seller?
Capital gains tax is payable when a seller sells an asset that exceeds R2 million on properties not exceeding 2 Hectares.
Kindly contact your local tax practitioner for more information.
Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa.
She has a wealth of knowledge and delivers service excellence with flair!
Mobile: 071 758 0996
alta.nel@seeff.com
Website: altanel.co.za
