Selling a property involves various costs that sellers should be aware of.

Let's explore these expenses:

• Agent Commission: Sellers agree to pay a commission to the agent, as stated in the Offer to Purchase. However, in auction sales, the commission is typically covered by the purchaser.
• Mortgage Bond: Before transferring the property, sellers must cancel all registered mortgage bonds. As per the National Credit Act, sellers need to provide the bank with a 90-day notice before canceling the mortgage bond. Should the bond be canceled before the notice period ends, sellers may incur penalty interest for the remaining days.
• Bond Cancellation Costs: The financial institution or bank will assign an attorney to handle the bond cancellation process. These costs are typically around R4500. However, if multiple bonds are registered on the property, the fees will increase accordingly. The transferring attorneys will coordinate with the bond cancellation attorneys and deduct the applicable fees from the transaction proceeds.
• Rates Clearance Costs: When selling a property, a rates clearance certificate is necessary. This certificate confirms that all outstanding payments owed to the local authority, such as rates, electricity, water, and refuse, have been settled. The local authority may request advance payments for 3-4 months. After the transfer is registered, any excess payments will be refunded to the seller.
• Levy Clearance Costs: For sectional title units, a levy clearance certificate is required. This certificate ensures that all levies and charges are paid in full until the end of the registration month. The managing agent or body corporate may require advance payment of levies or utility charges. The transferring attorneys or body corporate will handle pro-rata adjustments of these payments during transfer registration.
• Home Owner's Association: If the property is part of a home owner's association, a clearance certificate from the association is needed. This certificate confirms that all outstanding amounts owed to the association have been settled until the end of the registration month. The home owner's association may require advance payment of contributions. The transferring attorneys or home owner's association will handle pro-rata adjustments of these payments during transfer registration.
• Compliance Certificates: Depending on the property, specific compliance certificates may be necessary, such as an electrical compliance certificate, a gas installation certificate of conformity, and an electric fence system certificate of compliance. The costs for obtaining these certificates will vary based on the contractor engaged.
• Lost Title Deed: In rare cases where the Title Deed for the property is lost, sellers must apply to the Deeds Registry for a certified copy. The approximate cost for this application, including disbursements, is around R4000.