What Sellers need to pay when selling (Part I)

The very first thing to do for any home owner who wants to sell is to give notice to the bank (where the bond is held) that you are going to sell your property. The bank needs a 90 day notice period for bond cancellation. If not you will be charged interest for early settlement. The interest amount can be the same as your monthly bond repayment amount.

The Seller has to provide building plans of their home to prospective buyers. Building plans can be obtained from the municipality for less than twenty rand. Buyers don’t want to take the risk of knocking down part of their newly bought home because it traverses the boundary wall.

According to new legislation the seller has to provide an electrical compliance certificate that is not older than two years. The Sellers must also provide an entomology certificate to state that the property is free of wood borer on request from the buyers, especially in coastal cities. Both these two certificates amount to approximately R300 each.

Sellers have to provide a rates clearance certificate which can only be issued when the rates payments have been fully paid for at the local municipality. If there is no rates clearance certificate the transfer of the property cannot happen. Take note that the rates clearance certificate applications are influenced by the correctness of the building plans.

The transfer attorneys will conduct all of the above except for the cancellation of the bond which the seller must attend to.