Many sellers are caught off guard when they find out that there is more than just the agent’s commission that they will be responsible for when selling their home.
To protect yourself against being left with less than what had been budgeted for, you should talk to your chosen property professional about all the expenses involved and budget for them accordingly. Below we take a look at four main expenses that are usually involved in the sale of most properties.
Bond Cancellation Fees
Each financial institution will have its own rules and applicable charges for cancelling an existing bond, so you will have to enquire with their financial institution to find out what they can expect to pay.
Keep in mind that most financial institutions require either a 60 or 90 day notice period, otherwise, penalty fees will be charged. To avoid these costs, as soon as you put your property on the market, you should send a written letter to the bank to alert them of your intention to sell.
Municipal Accounts
In order for the transfer to go ahead, you will need to acquire a rates and taxes clearance certificate from the local municipality. This fee is charged to make sure that rates and taxes on the property will still be paid while the registration process is underway. Consequently, the municipality usually asks for between two to six months upfront. The municipality will later refund you if the registration process is completed within a shorter timeframe than what was billed for.
Special Levies
Similarly, if you live in a sectional title estate, you could be charged roughly three months’ worth of levies upfront before the registration of the sale. Sellers should speak to their HOA or Body Corporate to find out about these costs.
Compliance Certificates
Another expense that needs to be covered before the transfer can go ahead is that of the various compliance certificates (electric, plumbing, gas, beetle, electric fence) required during the home inspection process. Sellers will also have to cover the costs of addressing any issues that are pointed out in order for the certificate to be issued.
Article Source: https://www.myproperty.co.za/news/market-and-opinion/plan-ahead-for-these-4-expenses-when-selling-your-home-26-10-22
