Absa’s Geoff Lee says sellers need to be aware of the following costs:
Costs of all clearance certificates for the property before the sale can be effected. These include certificates of compliance for electricity, gas, electric fences, beetles and plumbing.
- Advertising costs for your property.
- Commission to the estate agent, if using their services.
- Moving costs once you have sold.
- Capital gains tax on the sale of a property that is not a primary residence and where the gain is greater than R2 million.
If an owner sells before the bond is paid off, they will need to pay early termination and bond cancellation fees. Attorney cancellation fees are charged by the attorneys for work done as well as Deeds Office fees, says FNB’s Buyisile Maseko.
“This fee is for your account and may vary depending on the number of bonds you hold over the property that need to be cancelled.” She says the bank’s early termination fee requires a 90-day notice period and is calculated on the outstanding balance at the current interest rate for a period of 90 days.
“If you have served the full 90-day notice period, no early termination fee will be charged, but if you have only served a portion of the 90-day notice period, the fee will be charged pro-rata for the remainder of the 90 days that must be served.”
No fee is charged by the bank on a paid-up bond, unless the seller wants to keep the account open. Municipal rates and taxes must be paid up to date and clearance certificates obtained.
“If the property is a sectional title, a body corporate clearance certificate is required. “Where a homeowner’s association is established, a clearance certificate is required,” Maseko says.
Personal income tax must be paid up to date and sellers must continue making home loan repayments until the loan is cancelled.