Selling a property – the costs involved.
If you are planning to sell your home, or currently have your home on the market, then it is important for you to be aware that there are some costs involved with the sale of your property. The most common of these costs will be discussed below:
Compliance Certificates – in order for your property to be transferred into the buyer’s name, you as the owner are required to obtain the following compliance certificates:
- Electrical Compliance Certificate
- Pest Compliance Certificate
- Gas Compliance Certificate (if there are gas fixtures or fittings on the property)
- Electric Fence Compliance Certificate
- Alien and Invasive Species Compliance Certificate
It is however important to note that these are the Certificates required by owners within KZN, and these guidelines do differ between some provinces and may change over time.
Bond Cancellation Fee – this is a fee payable to the Cancellation Attorneys for cancelling your existing bond over the property. Please note that this is only applicable if you have a bond over the property being sold and therefore does not apply to all property sales.
Rates and Taxes Clearance Certificate – this can be obtained from the local authority in your area (Rates Department).
It is important to note that your rates and taxes have to be paid four to five months in advance, before registration of your property can be made from your name into the new buyer’s name.
Levy Clearance Certificate – this can be obtained from the body corporate or homeowner’s association. In the case of a special levy, a full amount must be paid, before this certificate is issued.
Capital Gains Tax – this is not an amount which always has to be paid, but does need to be paid in certain situations. A full explanation of Capital Gains Tax will be provided in a future article.
Moving Costs – This is a cost which is often forgotten or overlooked, especially if you have only just placed your home on the market. If the property you are selling is the property in which you currently reside, you will most likely have to pay an amount in order to move out of your home, before the new buyer takes occupation.
Estate Agent’s Commission – this amount, payable to the agent who sold the house, will be reflected in the Sale Agreement and varies between agencies, etc.