Property Expenses: Who Pays for What in the Home Buying Process

by Quanita Chohan • 3 MIN • 500 Words



When it comes to buying or selling property, there are several costs associated with the transaction that both buyers and sellers need to be aware of. Let's break it down to simplify the process.

Buyer Costs

Transfer Costs
Transfer costs are the costs associated with the transfer of the property from the seller to the buyer. These costs include the transfer duty, which is a tax imposed by the South African Revenue Service (SARS) on the transfer of immovable property. The transfer duty rate fluctuates based on the property's value, typically falling within the range of 5% to 8%.

Transfer duty becomes applicable for properties valued at R1,100,001 and beyond.
In addition, the buyer will also need to pay conveyancing fees to the conveyancer handling the transfer. These fees cover the costs of the conveyancer’s services, as well as any disbursements they need to make.
Bond Registration Costs
Bond registration fees are paid to the bond attorney, who is appointed by the bank to register the bond in the homebuyer’s name. Bond registration fees are dependent on the size of the home loan. The higher the loan, the higher the fees.

Moving Costs
Moving costs vary widely depending on various factors, including the distance of the move, the amount of belongings, and the services chosen.
Utility Deposits
Once the property registers on your name you will need to open a new account and pay the municipal deposit at the municipality.

Seller Costs

Bond Cancellation Costs (If applicable)
The seller will have to pay an attorney to cancel the bond registered over the property.

Municipal & Levy Clearance
The seller must pay up to 4 months municipal charges in advance to the municipality during the transfer to ensure that the costs are covered during the home selling process. If the home being sold is a sectional title, the seller is required to pay all the levies owed in advance as well as the clearnace charges. 

Compliance Certificates
The seller is required to obtain compliance certificates for electricity, gas and electric fence to ensure that everything is up to standard. These certificates must be issued by registered professionals.

Estate Agents Commission
Estate agent costs are paid by the seller and cover the costs of the estate agent’s services in marketing and selling the property. These costs are generally calculated as a percentage of the sale price and are usually between 5% and 7.5%.

Understanding all the costs involved in buying or selling a property in Welkom is crucial for both buyers and sellers. Don't leave anything to chance—contact your Q Prop estate agent today! Ensure every expense is accounted for and enjoy a fair, transparent transaction. Your peace of mind is our priority! 

Explore our real estate calculators to estimate your transfer and bond costs here. 

Read More Articles Here: 

The Essential Role of A Real Estate Agent

Understanding Sectional Title Living

Understanding the Rent-to-Buy Concept

The Responsibility of Owning Vacant Land in Welkom

The Power of Preapproval: Your Ticket to Homeownership




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