Extra costs to consider when selling your property

 There are several costs involved in selling a property which the seller should be aware of:

 Bond cancellation

There will be an administration fee to cancel your bond.  This will vary from institution to institution but can be between R3000 – R4000 and is payable upon transfer.   You will need to give the bank written notice before consolidating your bond in full as a result of sale.

Compliance costs

The Electrical Certificate of Compliance (ECOC) must be in order before a property is transferred – this is for the seller to obtain and can cost anywhere from R500 -R1000 depending on the size of the property.  Other compliance certificates that the seller is responsible for include gas (if a household has installed gas lines to supplement their electricity usage then homeowners are required to obtain a certificate indicating that the installation has been done by a qualified technician), plumbing, beetle and electric fence certificates.  Homeowners who are selling their property in KZN will generally need to provide the purchaser with a beetle-free certificate.  (wood borer clearance)

Rates, levies, and taxes clearance certificate

The conveyancers will require a clearance certificate stating that all rates and taxes are fully paid.  In order to provide the clearance certificate, the council can ask between 3 – 6 months of future-dated payments which the seller is responsible for.  If the property is being sold in an estate or a sectional title property, the homeowners’ association could require the seller to pay the levies a few months in advance to ensure all costs are covered while the property transfer is in process.  The council will pay back the additional money which the seller has paid, but this may take some time until transfer takes place.

Agent commissions

This is usually a percentage of the purchase price and is the seller’s responsibility to pay.