Costs involved in buying and selling property

Costs involved in buying and selling property

Make sure you know exactly what you're in for, when it comes to all the costs involved with buying as well as selling property.

Advertising Costs

If you use the services of an estate agent, this cost is usually covered by the estate agent.

Compliance Certificates

An Electrical Compliance Certificate is required by law for the property to be transferred to the buyer's name. This, and any electrical repairs that need to be made, is for your account. You may also be required by the buyer's bank to provide a Beetle/ Infestation Clearance Certificate.

Rates and Taxes Clearance Certificate

This is obtained from the local authority or body corporate stating that your rates and taxes or levies are paid up to date.

Rates and taxes have to be paid 4 – 5 months in advance before registration, of the property into the name of the new buyer, can take place.

Bond Cancellation Fees

This is paid to the Cancellation Attorneys for cancelling your existing bond.

Estate Agent's Commission

This is usually a percentage of the selling price. There is no set rate of commission. The rate of commission is negotiable with the estate agent.

Capital Gains Tax (CGT)

For Individuals and special trusts:

the maximum marginal capital gains tax rate is 13.33%.
the first R 30 000.00 of capital gain/loss per year (2014/15 tax year) is exempt from CGT.
the “primary residence” exemption is as follows: As a natural person/s, if you sell your home (which is personally occupied by you), for a gain/loss of R 2 million or less, the sale is exempt from CGT.
For corporate taxpayers or other trusts, no exemptions are available! This means that corporate homeowners (CCs or companies or trusts) are faced with a high CGT bill when disposing of the underlying property in which the members/directors/trustees resided, at a flat rate of 18.67% for companies/cc’s and 26.67% for trusts.

Moving Costs

Moving costs can only be obtained by getting quotations from removal companies.

Discliamer: Every effort is made to ensure the correct figures are stated on the date of update of this article. (March 2014). Please refer to the latest edition of Property Power for up-to-date information.

 

Private Property