Welcome to a brand new year and with that, our new series of monthly property talk articles. Although 2021 started off with a rough start, the property market is showing great prospects.
With the reserve bank’s decision to keep the interest rates unchanged, more buyers are motivated to buy. This is positive news for sellers wanting to sell their properties. However, with the current economic challenges, sellers often find themselves in financial difficulties when it comes to the costs associated with selling their home.
In this week’s edition we will touch on the costs a seller needs to be prepared for once a property is sold.
Firstly a seller needs to determine what the outstanding bond is on the property. This will be deducted by the transferring attorneys from the selling price on date of registration, to settle the bond account.
Bond cancellation fees – These fees are payable to the bond cancellation attorneys instructed by the bank to cancel the bond.
Coc – Certificate of compliance for electricity and gas if applicable in the instance where there is a gas stove.
Municipal clearance certificate – This is a settlement of the Municipal rates and taxes and outstanding usage. This certificate will also be charged for 3 months in advance. The municipality takes an average usage 3 months in advance and then it is credited back to the seller should the transfer take place prior to the 3 months expiring.
Agents fee – This is an amount negotiated between the seller and his/her agent for professional services rendered, such as marketing, negotiation with buyers, contract fees and assistance with transfer process.
It is highly recommended that a seller appoint a qualified real estate agent, holding a valid FFC (Fidelity Fund Certificate) to assist and guide throughout the process. The seller should ask the agent to provide this certificate upon negotiations. Failure to produce can cause a seller to withhold any commission due to the agent. It is always advisable to use an experienced professional agent in order to avoid any bad experience when selling your home.
For any property related advice I can be contacted on Whatsapp, email or call at 082 447 1512 or nicola.strydom@seeff.com
Please also feel free to visit our offices at 61 Boundary str, Tzaneen for an in person consultation.
Be safe and good luck with selling your home.
