INFORMATION REGARDING PROPERTY TRANSFERS
WHAT IS WHAT AND WHO PAYS WHAT!
Firstly it is extremely important to know what are our rights as, a buyer or a seller, what needs to be paid, who is liable to pay and who assists you in this journey.
1. You appoint the transferring attorney of your choice, this can be done solely on your own discretion or on the recommendation of your Estate Agent. What should be kept in mind:
⦁ You should ensure that you appoint a Conveyancer and not just a normal attorney as Conveyancers who specialize in immovable property transactions.
⦁ You can also enquire whether the conveyancer does his own lodgement and registrations in the relevant deeds office. If a correspondent is used to attend to lodgement and registration it could delay the registration process.
2. Costs involved in selling your home can include the following:
⦁ Cancellation of your current bond together with payment of the bank appointed conveyancers cancellation costs – your current bondholder ABSA, NEDBANK, FNB, STANDARD BANK, holds the original deed to the property as surety on the bond. The bond need to be settled before permission for the cancellation will be granted and the original deeds will be released. NOTE that the bank requires you to give them 90 days notice of your intention to cancel the bond alternatively an early termination penalty on your existing bond can be charged.
⦁ Rates and / or Levy Clearance figures – this is obtained from the relevant municipal authority and is issued 120 days in advance as prescribed by law. Levy figures will also be obtained from the relevant managing agent of your estate if applicable. Payment of these costs will be indicated as a credit on your account until date of transfer and any excess will need to be refunded to you from the relevant institution.
⦁ Electrical compliance certificate – you as the seller must appoint a qualified electrician to assess the electrical wiring of the property and issue a compliance certificate in terms of the Occupational Health and Safety Act 1993, a property may not be transferred without this certificate.
⦁ Estate Agent commission – if you used an Estate Agent to assist you in the marketing and selling of your property, the Estate Agent will be entitled to levy a fee for their services, this fee will have to be paid by you as the Seller.
⦁ Other charges that could accrue are for example:
⦁ Electric fence compliance certificate
⦁ Gas installation compliance certificate
⦁ Water / Plumbing certificate
⦁ Beetle certificates
DOES ALL THESE COSTS COME OUT OF YOUR POCKET?
NO, not all the costs listed above have to be paid upfront and some can be covered by means of a guarantee that is subtracted from the proceeds of the sale. The following costs needs to be paid by yourself before hand – Rates and / or levy Clearance figures, other certificates as mentioned above.
WHAT CAN I DO IF I DO NOT HAVE THE FINANCIAL MEANS TO PAY THE UPFRONT COSTS?
You can instruct your Conveyancer to apply and obtain the necessary bridging finance, if provision can be made to pay said finance from the proceeds of the sale and paid back to the Bridging Company on registration of the property.
3. What do I do while I wait for my property to be sold and transferred?
⦁ Discuss any queries you may have with a Conveyancer regarding the process and most importantly calculate your estimate proceeds from the information at your disposal using the following diagram example;
Minus - LOCAL AUTHORITY RATES CLEARANCE FIGURES
|Minus - ESTATE LEVIES (if Applicable)|
|Minus - OUTSTANDING BOND|
|Minus - ESTIMATE CANCELLATION COSTS|
|Minus- ESTATE AGENT COMMISSION|
|Minus - COST OF ELECTRICAL COMPLIANCE CERTIFICATE|
1. It is important that the purchaser, before signing an offer to purchase, satisfied himself / herself with the current financial position and his financial means together with the prospects of obtaining a loan from a financial institution.
2. The Purchaser will be liable for the payment of the transfer fees, charged by the transferring Conveyancer, and the bond registration costs, charged by the bank appointed bond Conveyancer, and transfer duty.
It is also extremely important that the Purchaser is aware of the costs relating to the purchase of a property and the monthly responsibilities. The following table is a guideline to calculate this commitment:
|BUILDING INSURANCE PREMIUM|
|LOCAL AUTHORITY WATER, RATES AND TAXES|
|ESTATE LEVIES / HOME OWNERS ASSOCIATION|
|TOTAL R||TOTAL R|
RESPONSIBILITIES OF THE CONVEYANCER
1. The Conveyancer will ensure that the agreement entered into by the Seller and Purchaser is duly executed.
2. Bond cancellation figures together with the title deeds must be requested.
3. FICA will be requested from both Seller and Purchaser.
4. On receipt of the cancellation figures and title deeds the transferring Conveyancer will prepare their draft deed and forward same together with the request for guarantees to the Bond registration attorneys, for issuing of the guarantees
5. Transfer documents will be drafted and both the Seller and Purchaser will sign the documents.
6. Administration of all finances including receipt of deposit and occupational rent (if applicable), payment of Local Authority rates and taxes, Estate levies, transfer duty etc.
7. Liaise with Bond Cancellation Attorneys and Bond Registration Attorneys.
8. Documents are prepared to be lodged at the relevant deeds office.
9. Documents are lodged in the deeds office to be examined.
10. Property registered in name of the Purchaser, covering bond registered and Sellers bond cancelled simultaneously.