The Cost of Selling a Property

Not only when buying but also when selling a property, there are costs that need to be taken into consideration. Some of the costs to expect when selling a property are:

Estate Agent Commission

If, in order to aid with the sale of a property, the seller employs the services of an estate agent, the agent will ask for a commission from the sale of the property. The amount of commission is negotiated with the estate agent prior to the employment of their services and can vary from between 3% to 7.5 % of the sale price of the property. This is payable on transfer of the property.

Capital Gains Tax

When selling immovable property, the seller is liable to pay tax on the profit made from the sale. The amount of tax payable depends on whether the property is owned by an individual, company or trust. The taxable amount is added your total income for the year and rates depend on which tax bracket you fall under.

Electrical and Beetle Certificates

It is the responsibility of the seller of a property to prove that any structures on the property are free of insect or electrical problems. The seller must contract professionals to perform inspections of the property and certificates that confirm the soundness of the property. Any maintenance needed to bring the property up to standard is the responsibility of the seller.

Bond cancellation fee

You are charged a cancellation fee when you cancel an unpaid bond. However, as long as you provide the bank with the required 3 months notice, your cancellation fee could be only up to R1000. If you do not give the required notice, then you will also be charged the interest due over the cancellation period.

Rates clearance

In order to sell your property all rates and taxes have to be paid up to date. Rates and taxes have to be paid 4 months in advance before registration of the property into the name of the new buyer can take place.