Page 36 - Robin Twaddle PTG 2017 Digital

◆◆ Sundry charges – posts and petties and telephone calls payable to the transferring
attorney (usually about R850 plus VAT), and valuation certificates – a disbursement
to the local authority to obtain valuation and rates clearance certificate – which varies
depending on the local authority e.g. Cape Town is R408 for rates clearance electronic,
and electronic facilitation cost R195.

◆◆ 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 and utilities (levied by the local authority) are paid by the seller in advance for
120 days, who may then claim a refund from council for any amount overpaid, covering
the period after registration of transfer.

TYPICAL COSTS OF SELLING

◆◆ Estate agent’s commission – Commission rates are calculated as a % of the gross
purchase price and should be negtiated 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, plumbing and gas certificates – usually
between R350 and R500 (plus VAT). The Seller will be responsible for any repairs
required before such a clearance certificate can be issued. The beetle inspection
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 – the
Occupational Health and Safety Act (85 of 1993).

◆◆ Bond cancellation fees – to cancel an existing bond. Sellers should be aware that they
need to give their financial institution 90 days notice of their intent to sell and in turn
cancel their bond finance to avoid early termination penalties.

◆◆ Rates and 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 (can vary from agreement to agreement).

◆◆ Electrical System Fence Certificate – Usually this will be provided for in sale
agreements concluded after 1 October 2012, which in most cases, will require the
seller to bear the cost of ensuring compliance with specifications, together with the cost
of obtaining the compliance certificate.

◆◆ Other costs – the bank may also charge a bond initiation fee – usually a base fee plus
% of the loan amount, which is usually debited off home loan account. A homeowners
insurance policy (to cover property and structures on it against natural disasters), home
loan protection assurance (death, disability), moving costs, and telephone and internet
connection costs may also need to be taken into account.

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