It is important for home buyers 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 ensure that the necessary funds are available. A purchaser 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.
Transfer and bond registration costs
A Transfer duty and other transfer costs
B Bond registration costs or bank guarantee cost (if applicable)
C Bank initiation fee
A + B + C = Total costs
Total cash required upfront
Deposit, if applicable, plus costs A + B
The seller needs to consider the bond cancellation fee as well as any outstanding amounts
payable in respect of an estate/sectional title levy and/or municipal services fees. It is
important for the seller to submit notice to the bank for the cancellation of the bond.
Three months’ notice is required to avoid penalties.
In addition, the seller is responsible for all costs involved in order to obtain valid
compliance certificates e.g. electrical and gas certificates.