Transfer And Bond Costs
Transfer And Bond Costs Explained
When purchasing a property, people often don’t keep the transfer and bond costs in mind. There are set fees for everything to help you budget better. You can find a full table on the transfer and bond costs at our website under the Conveyancing Fees section. Simply print it out and keep with you when browsing for property.
For the first time home buyer, transfer and bond costs don’t present a problem, but the second time buyer should take note of such. Property transfer entails a number of people, starting with the seller who often makes use of an estate agent. Commissions must be paid to the estate agent of around 7.5 to 8-5% plus 14% VAT. The purchaser must pay the commissions, but such are normally worked into the selling price. Inspection fees and evaluation must also be paid by the purchaser.
All transfer and bond costs are for the account of the purchaser. Such costs include the conveyancing fees as well as the transfer duties. You can find a breakdown of transfer duties under our Conveyancing Fees section for easy calculation of such.
The attorney registering the property in the name of the purchaser, known as the conveyancing attorney, as well as the bank attorney registering the bond over the said property must be paid. The law stipulates the fees, known as the conveyancing fees. The tariffs are based on the purchase price of the property. By negotiating a lower purchasing price, you will thus also save on the conveyancing fees.
Apart from the above, stamp duties must be paid which are government taxes on the sale of a property. You will also note posts and sundries which are the bank costs regarding postage, administration, and more. Fortunately this amount is low. SARS also requires VAT to be charged at 14%. There is also a fixed fee that must be paid to the Deeds Office for the bond registration. The transfer duty must be paid before the property can be registered in the name of the purchaser.
View the full article regarding transfer and bond costs under Conveyancing Fees and contact us today to act as your conveyancing attorneys.