Peak Properties Estate Agents Greyton Properties

Greyton property for sale in South Africa by Peak Properties

 

TYPICAL COSTS OF BUYING:
PURCHASE PRICE
•   A deposit of the gross purchase price to the estate agent or conveyancer payable usually on signature of the deed
    of sale by both parties or within 7 to 14 days from signature (usually 10%) (if applicable).
•   The balance of the purchase price is lodged with the conveyancer prior to transfer, or is secured by way of a bank
    guarantee.
•   Over and above the purchase price, the purchaser should have the cash available to cover the transfer costs
    (if this is not included in the bond) and the bond registration costs as follows:-

TRANSFER COSTS
•   Transfer Duty is calculated on a sliding scale for the individual buyer between 0% to 8% of the gross purchase
    price payable (R0 to R500 000 is exempt). If the property purchased is registered in the name of a CC, company or
    inter vivos trust, transfer duty at a rate of 8% of the gross purchase price, is payable to SARS.
•   If the seller is a VAT vendor, then VAT is payable at 14% of the purchase price. As the seller is liable for payment, it
    is important to add the VAT to the purchase price. The transaction may be zero-rated only when an income
    generating entity, which is also a going concern, is sold from a VAT vendor to a VAT vendor. If VAT is payable, the
    purchaser will not pay transfer duty. Check whether the price is stated as including or excluding VAT. If nothing is
    stated, it is inclusive of VAT. Whether the transfer duty or VAT is payable, if the purchase is registered for VAT (s)he
    can potentially reclaim this with the normal VAT cycles as an input credit.
•   Conveyancing fees of the transferring attorney, may vary slightly according to rates set by the conveyancer who
    attends to the transfer, but are based on tariffs from the Law Society (plus VAT).
•   The legal and registration costs are payable at least 4 weeks prior to the date of transfer, so that lodgement can
    be effected in the deeds registry. The timing of the payment is usually set out in the agreement.
•   Bond registration costs and transfer are normally paid by the purchaser (plus VAT).
•   Deeds office/registration fees is a fee which varies between R55 and R2000, dependent on the value of the
    property.
•   FICA costs - usually R300 per FICA (Financial Intelligence Centre Act) investigation.
•   Sundry charges - posts and petties and telephone calls payable to the transferring attorney (usually about R500),
    and valuation certificates - a disbursement to the local authority to obtain a valuation certificate - which varies and
    is based on the valuation of the property, usually between R100 and R150 (including VAT).
•   Occupational rental/pro rata rates and taxes - occupational rental payable as per agreement and usually prior to
    and adjusted on registration of transfer. Rates and taxes (levied by the local authority) are paid by the seller in
    advance for 120 days, who may then claim a refun from the council for any amount paid, which is attributable to the
    rates due, following transfer.

TYPICAL COSTS OF SELLING:

•   Estate Agent's commission - commission rates are calculated as a % of the gross purchase price and should be
    negotiated 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 certificates - usually between R250 and R500 (plus VAT). The seller will be
    responsible for any repairs required before such a clearance certificate can be issued. The beetle inspecation
    certificate may be required by inclusion in the contract of sale. The electrical inspection certificate is required to be
    obtained by the seller in terms of legislation (Occupational Health & Safety Act no 85 of 1993).
•   Bond cancellation fees - to cancel an existing bond.
•   Rates & Taxes - the seller is normally liable to pay rates up to the date of transfer. This may involve paying a 120
    days rates in advance, payable before registration of transfer.