Transfer costs: frequently asked questions
WHAT COSTS ARE INCURRED BY THE SELLER WHEN SELLING AN IMMOVABLE PROPERTY?
Rates & Rates Clearance Certificate
A Rates Clearance Certificate is required to effect transfer of immovable property and certifies that the Seller’s municipal account is up to date. The Seller will be required to make a payment of rates, taxes and utilities for a period of 4 months in advance. A clearance certificate is usually valid for 60 days from date of issue.
Levies & Levy Clearance Certificate
A Levy Clearance Certificate is required to effect transfer of a sectional title unit. This certificate certifies that all levies due by the Seller have been paid in full to the Body Corporate. The certificate will have an expiry date and must be valid at the time of transfer.
An Electrical Compliance Certificate (ECC) is required by law for the transfer of immovable property. The ECC must be issued by an electrician licenced/registered with the Department of Labour. An ECC is valid for a period of 2 (two) years from date of issue, provided that no remedial work, alterations or additions have been made to the electrical installation from date of issue of the ECC.
An Electric Fence System Certificate of Compliance (EFSCOC) is required by law for the transfer of immovable property if an electric fence system is present or operated from the property. An EFSCOC must be issued by an electrical fence system installer, licenced with the Department of Labour. An EFSCOC is valid provided that no remedial work, alterations or additions have been made to the electric fence system from date of issue of the EFSCOC.
A Certificate of Conformity for Gas Appliances (COCGA) is required by law for the transfer of immovable property if there are gas appliances installed at the property. A COCGA must be issued by a gas installer licenced in terms of the regulations. A COCGA remains valid provided that no remedial work, alterations or additions have been made to the gas installation from date of issue, however a new certificate is required for each transfer.
Plumbing Certificate of Compliance
A Plumbing Certificate of Compliance is issued by an authorised plumber confirming compliance in terms of the applicable regulations. This is currently only a requirement in the City of Cape Town as part of the Municipal By-Laws.
Entomologist Certificate of Compliance
A Pest or Borer Beetle certificate must be issued by an Entomologist registered with the South African Pest Control Association. This is currently a requirement in Kwazulu-Natal, the Eastern and Western Cape.
Estate agent’s commission
Estate Agents commission is due by the Seller and is ordinarily paid to the Estate Agency by the Conveyancers on date of registration of transfer as set out and agreed in the offer to purchase. Commission is usually deemed to be earned upon signature of the sale agreement or upon fulfilment of suspensive conditions.
Bond cancellation costs
If a mortgage bond is registered over a property (even if the balance is zero), the registered bond needs to be formally cancelled in the Deeds Office by way of an application made by the Bondholder to the Deeds Office. A Conveyancer will be appointed by the Bondholder to attend to such cancellation. The cost is approximately R3000 – R4000.00.
Article source: Kruger Attorneys & Conveyancers Inc