Selling a house is a significant undertaking, and understanding the process and associated expenses can help ensure a smooth and successful sale. If you are planning to sell your house, this guide will provide you with valuable insights into what you can expect throughout the process. From expenses to legal requirements, we will cover all the essential aspects to help you navigate the real estate market with confidence.
Cancellation of Current Bond (if applicable)
As part of the expenses involved in selling a house, there is a cost associated with cancelling your current home bond, which is handled by the bank-appointed bond attorney.
The bond cancellation process for sellers entails certain costs, including:
- A penalty fee if you fail to give the bank a written notice of your intention to sell the house at least 90 days in advance. To avoid this penalty, it is advisable to notify your bank before listing your home for sale.
- A penalty if you cancel the mortgage bond within two years or less of the 20 or 30-year loan term.
- Homeowners’ and life insurance premiums would have been deducted from the bond account within the next six months. This ensures that the insurance coverage remains active until the home-selling process is finalised.
When does the bond cancellation process conclude? It is only completed once the house is sold, as this is when the attorney provides the bank with the final financial details.
What happens if the home isn’t sold before the 90-day notice period expires? You can easily submit the cancellation notice again, and the notice period will be extended accordingly.
Source: ooba
Rates Clearance Certificate
A Rates Clearance Certificate is an official document issued by the appropriate local government entity upon request from a conveyancer for the purpose of property transfer. This certification confirms the absence of any unpaid obligations owed by the seller for the property.
In the event of any outstanding payments, the seller will be required to resolve the account balance up until the transfer date.
Compliance Certificates
It is a legal requirement to obtain various compliance certificates, such as an electrical certificate of compliance (ECOC), beetle and gas certificates, Water installation, and a plumbing certificate. The costs for these certificates vary depending on the condition of a property.
Generally, costs can range from R500 – R1000 per certificate. If there is any work that needs to be done on the property, the seller is liable for the extra costs.
Real Estate Agent Fees
Determining the accurate value of your property is crucial for a successful sale. Many sellers choose to engage a qualified real estate agent who will assist in setting the right asking price. Keep in mind that real estate agents typically charge a commission fee, usually a percentage of the sale price. The industry standard in South Africa is around 5-7% plus VAT.
Conclusion
Selling a house involves careful planning, thorough preparation, and a clear understanding of the associated expenses. By considering the costs mentioned above and working with experienced professionals, you can navigate the selling process with confidence. Remember to consult with local experts, such as real estate agents and conveyancers, to ensure compliance with South African regulations and to make the most informed decisions throughout the selling journey. Good luck with your house sale!
Additional Q’s and A’s:
What about conveyancer costs? When it comes to the payment of conveyance attorneys, the seller appoints the attorney, and the purchaser pays the attorney.
How long does it take to transfer a property to the buyer? Transfers can take anywhere between 6 – 8 weeks.
