What do you as Buyer pay?
- Transfer Costs to the transferring attorney (they attend to the transfer of the property from the Seller to you);
- Bond Costs to the bond attorneys (if applicable, they attend to the registration of your bond);
- A portion of the Levy Clearance (if applicable)
What do you as Seller pay?
- Agent’s Commission;
- Cancellation fee to the Bond Cancellation Attorneys who will act on behalf of the existing mortgage bond holder to cancel the existing bond over the property (this is only if there is a bond over the property);
- Rate clearance figures (four to five months in advance) due to the Municipality; as well as the fee to obtain such figures.
- Levy clearance figures (up to 2 months in advance) if this is a Sectional Title transfer;
- FICA fee of R342,00 per person;
- Deeds Office fee of R285,00 (this is to confirm that the Seller is the registered owner of the property);
- If the Seller can’t pay the Electrician to issue the Certificate, then we can attend thereto on his/her behalf and deduct same from the proceeds due to him/her.
Useful information for you as Buyer
CASH
The amount must be paid to the transferring attorney on acceptance, or by the date specified in your agreement of sale. If you have the funds invested, guarantees need to be issued against your investment.
DEPOSIT
If you have a deposit, which will form part of the purchase price, your deposit must paid by a certain date to the transferring attorney as stipulated in the agreement of sale. The deposit will be invested on your behalf to enable you to earn interest on your deposit.
BOND
If you are applying for a bond (either to cover the balance of the purchase price or for the full purchase price) the bond must be granted to you by a certain date as stipulated in the agreement of sale.
PAYING OF COSTS
It is important to pay your costs as soon as possible after being requested by the transferring and bond attorney (if applicable).
GENERAL
The transferring attorney needs to apply for a Transfer Duty Receipt from SARS. Please make sure your tax returns and details with SARS are up to date, as any incomplete/outstanding returns or incorrect details will cause a delay in receiving the Transfer Duty Receipt.
You need to furnish the transferring attorney with your income tax number, copy of your ID and an account reflecting your current residential address (this document must not be older than 3 months). This information is required to comply with FICA.
Useful information for you as Seller
ELECTRICAL COMPLIANCE CERTIFICATE
Each transfer requires an Electrical Compliance Certificate over the property in transfer. Each certificate is valid for 2 years if no alternations were made to the property from date of issue. Should the purchaser bond the property, the Bond Attorneys will require this certificate soonest as the bank will not give a consent to proceed to lodge without an ECC. We advise that the ECC is arranged shortly after the purchaser has obtained a bond as this can cause a delay in the transfer process.
THE SELLER NEEDS TO INFORM THE BANK OF INTENTION TO CANCEL THE BOND
We strongly advise you to inform your bank in writing of intent to cancel your bond the moment you sign a mandate with your agent to sell the property. This is to avoid a cancellation penalty interest owed to the bank. The penalty period is calculated over 90 days. Should you not inform the bank, your cancellation period will start on the day that your bank sends the instruction to the cancellation attorneys. It is very important for you to maintain your monthly bond repayments until registration. You will be requested to complete a refund sheet to allow the bank to refund you for any credit after registration.
ACCESS FACILITY AND FLEXY BONDS
The access facility you have on your bond will be frozen the moment cancellation figures are requested. If you want to access your funds or use the funds as a deposit on your new property, please transfer the funds prior to the attorney requesting cancellation figures, or when you give notice of intent to cancel your bond.
CANCELLATION FEES CHARGED BY THE BANK'S ATTORNEYS
The bank instructs an attorney to attend to the cancellation of your bond. The transferring attorney will inform you of the cancellation fee and this account must be paid prior to the registration of the property.
RATES & TAXES
When a property is sold, it is necessary to obtain a Rates Clearance Certificate from the council valid for between 4 and 5 months in advance. The transferring attorney will apply for rates clearance figures from the council on your behalf and will inform you of the amount due. Should there be any amount in arrears it will be calculated into the clearance figures. Payment must be made to the transferring attorney as soon as possible after receiving the figures. Should there be proceeds available in your sale, this amount may be bridged from your proceeds at minimal interest. If the property registers before the rates clearance certificate lapses, the council will refund you. It is important to know that the council can only finalize your account after the purchaser has opened an account and paid the deposit to the council. If the purchaser does not pay his deposit, the council can’t close your account and refund any credit which may be due to you. Our rates consultant can attend to this on your behalf at a small fee from your refund, please let us know and we will request same
LEVIES AND HOME OWNERS ASSOCCIATION CLEARANCE FIGURES
If the property you are selling is a sectional title unit, the transferring attorney will apply for levy clearance figures from the body corporate. You need to furnish the transferring attorney with the details of the body corporate. Once the figures are received the transferring attorney will inform you of the amount. If you have any problems with your account, you need to attend to it before registration.
GENERAL
You need to furnish the transferring attorney with your income tax number, current bond account number if applicable, a copy of your ID, the current rates and taxes account of the property, as well as an account reflecting your current residential address (this document must not be older than 3 months).
The transferring attorney will apply for a Transfer Duty Receipt from SARS. Please make sure your tax returns and details with SARS are up to date, as any incomplete/outstanding returns or incorrect details will cause a delay in receiving the Transfer Duty Receipt.
The following documents are required for FICA purposes
Natural Person
ID Document /s
Proof of Residence (not older than 3 months)
Income Tax Number
Proof of Marital Status as well as the Marriage Certificate and Antenuptial Contract
Copy of the current rates and taxes account over the property
Close Corporation
CK1 and CK2 documents
Document verifying operating address of business
Tax number
Vat number if applicable
ID documents of all members
Resolution signed by all members if only one members signs documents on behalf of CC
Company / PTY Ltd
Certificate of Corporation
Memorandum and Articles of Association
Document / Statement to verify operating address
Tax Number
Vat Number (if applicable)
ID Documents of all directors as well as signatory/ies
CK2 Documentation
Document / Statement to verify operating address
Resolution signed by all directors if only one director signs documents on behalf of Company
Trust
Trust Deed
Letter of Authority
Document / Statement to verify operating address
Tax Number
Vat Number (if applicable)
ID Documents of trustees as well as signatory/ies
Resolution signed by all trustees if only one trustee signs documents on behalf of Trust
Courtesy of Savage Hurter Louw Uys Attorneys