ADVICE: BUYERS

KNOW THE COSTS INVOLVED

It is important for homebuyers to understand the total costs involved in a property transaction and also to know when such payments are due before an offer is put on the table in order to avoid a difficult legal situation. Each buyer must know exactly what the upfront cash requirement as well as the total recurring monthly commitment is. Following is a broad outline of the costs involved:

Buyer’s cost sheet
			R Value
		Purshase Price	R x xxx xxx-xx
A	Transfer duty and other transfer costs
		Bond required	R x xxx xxx-xx
B	Bond registration costs
A+B=	Total costs
C	Total cash required upfront
	deposit
	Total Costs A+B
D	Total monthly commitment
	Monthly bond installment
	Homeowners insurance
	Estate/Sectional Title Levy

Other important notes:

• The South African law stipulates that transfer duty (i.e. the tax on a property transaction) becomes payable as soon as a sale agreement is signed. The agreement will in most cases state that the costs (which include the transfer duty and the attorneys’ fees and disbursements) are payable on demand by the conveyancer.
• Where a buyer is caught by surprise by the timing of the payment of transfer duty, it is often possible to arrange bridging finance or a loan. Your agent or an attorney would be able to introduce you to those capable of granting such monies.
• As a guideline, transfer duties are not charged on homes below R600 000 in value. For those valued at R600 000 to R1 million the transfer duty is 3%. Homes priced from R1 million to R1.5 million pay 5% transfer duty and those homes above R1.5 million are charged at an 8% rate.
• Ask your agent for an indication of the bond registration costs involved.

Also consider...

• Municipal deposits for water and electricity
• Cost of moving, new curtains, carpets, furniture and so on

THE A TO Z OF THE REGISTRATION PROCESS



MOVING MADE EASY

Planning is the key to success….

6 to 8 weeks prior to the move

• Confirm the date of your move and obtain quotations from furniture removal companies.
• Obtain ENOUGH! boxes, packaging tape, bubble wrap, unprinted newspaper and permanent markers if you are going to do the packing yourself.
• Confirm all insurance needs. Arrange with your short-term insurer to cover your transport risk for the day of your move – it is far less expensive than insurance provided by the removal company.
• Arrange for the disconnection/transfer of your fixed line telephone and/or broadband service with the help of the communications company and arrange for the correct accounts.
• Arrange for the transfer or disconnection of your water and electricity.

4 weeks

• Create an inventory of all your major belongings and allocate them to the rooms in your new home – write everything down!
• Give away any belongings you no longer need to a charity of your choice or to friends. A garage sale is another option.
• Arrange for the storage of your property, if necessary.
• If possible, visit your new home to take measurements for curtains and electronic appliances.

3 weeks

• Obtain all important records/information that you need to take with you from your doctor, dentist, schools etc.
• Keep important documents like your passports, insurance documents and service accounts handy.
• Start packing if the removal company has not been contracted to do so.
• Create a record keeping system and number each box with a complete list of everything that is in the box.
• Do not make the boxes too heavy to lift – put heavier items in smaller boxes. Do not overload any of the boxes.
• Make the necessary arrangements for your pets.
• Take care of all address changes, e.g. banks, insurance and investment companies, the Receiver of Revenue, SABC, Multichoice, dentist, doctor, professional bodies, employer etc.
• Arrange with the Post Office for the re-direction of your mail and transfer of radio and TV licence.

2 weeks

• Cancel or reschedule newspaper deliveries, garden services etc.
• If you still have a toddler around, arrange for a baby sitter for the day of the move.

The last week

• Defrost and dry your fridge and freezer (at least 2 days prior to the move).
• Contact an electrician for the disconnection of the stove and other electric and electronic appliances.
• Anchor the drum of your automatic washing machine by attaching the shipping brackets.
• Remove or put aside items that must not be packed and mark them clearly: “DO NOT PACK/REMOVE”.
• Make sure that you have kept aside jewellery, money, firearms, insurance policies and documents of high value.
• Pack a box of necessities for the move and mark it clearly: “LAST ON, FIRST OFF”.