Many of us don’t realise that conveyancing fees need to be paid once an Offer to Purchase has been signed and before the transfer process can begin.
These costs are payable over and above the purchase price:
Conveyancing Fees (including bond and transfer costs) – transfer costs are based on a sliding scale and are dependent on the value or purchase price of the property, whichever is greater. If a bond needs to be registered over the property to fund the purchase price or part of the purchase price then bond costs will be payable based on the bond amount being registered.
Postages and Ad Hoc fees – these include telephone calls and other admin costs.
Property Search Fees – covers the cost of attending to Deeds Office searches. The conveyancer needs to do these searches to ensure that there is nothing in the Title Deed which could prevent the transfer process from going forward.
Rates Clearance Certificate – A rates clearance certificate needs to be obtained stating that there are no outstanding rates and taxes over the property as at date of registration of transfer. The municipality usually require payment for provisions of rates and utilities in advance on the property.
Home Owners Association (HOA) / Body Corporate Levy Clearance / Admin Costs – In the case of a housing estate, apartment or flat, a Home Owners Consent or Levy Clearance Certificate needs to be obtained stating that there are no outstanding levies and other charges payable to the Home Owners Association and/or Body Corporate. The Home Owners Association and/or Body Corporate may require payment for provisions of levies and utilities in advance on the property.
Financial Intelligence Centre Act – Conveyancers need to verify the identity of the buyer and the seller. Proof of Identification and proof of residency need to be provided and verified.
Deeds Office fees – these costs are based on a sliding scale depending on the cost of the property and this is a cost payable to the Deeds Office for passing transfer or attending to other registrations.
Transfer duties – this is a tax charged by the Government and payable to the Receiver of Revenue by the purchaser. This tax is based on a sliding scale and is dependent on the value or purchase price of the property, whichever is greater. Currently, in South Africa, there is no transfer duty charged on a property less than R1 million.
Provisional Rates and Taxes and/or Levies – The purchaser needs to pay rates and/or levies pro-rata for the month of registration (some Municipalities and/or Home Owners Associations and/or Body Corporates may require payment up to 4 months in advance) before the transfer of a property can be finalized.
Electronic Generation Fees – Conveyancers use a software program to generate all the required documentation. Costs are incurred to generate these documents.
For actual costs, please contact jackie@leeandmcadam.co.za or keith@leeandmcadam.co.za, who will gladly assist.
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