As a seller, you have certain responsibilities that must be handled before a property sale can be completed:
Bond Cancellation
- Notice Period: If you have a bond on the property, you must provide your bank with at least 90 days' notice for bond cancellation. Failing to do so may lead to early termination penalties, which could increase your bond cancellation fees.
- Possible Delays: If you don’t give the required notice, the bank may impose penalties or delays of up to 90 days, impacting your sale timeline.
Bond Settlement
- Outstanding Bond Amount: You need to settle the amount still owed on your bond. Consider the bond settlement amount along with the costs you will incur during the sale to avoid any financial shortfalls.
Legal Fees
- Bond Cancellation Fees: If you have a registered bond, you are responsible for the cancellation costs, which are paid to attorneys appointed by the bank.
- Keep Up Payments: You must continue making monthly bond payments until the property is transferred. If you overpay on interest, the bank will refund the excess after registration.
Electrical Compliance
- Compliance Certificates: You must provide an Electrical Compliance Certificate and, if applicable, an Electric Fence Compliance Certificate before transfer can be lodged at the Deeds Office. These certificates must be issued by certified electricians.
- Costs: Electrical Compliance Certificate costs around R1,500.
Rates & Levy Clearance
- Rates & Taxes: Municipalities typically require you to pay 4-6 months' upfront rates and taxes before transfer.
- Levy Payments: For sectional title properties, levies must be paid in full, and the Body Corporate may charge a clearance certificate fee.
- Refunds: After the transfer, you can apply for a refund for any overpaid rates.
FICA Documents
- Compliance: To comply with the Financial Intelligence Centre Act (FICA), you must provide the attorneys handling the sale with the following:
- A copy of your ID.
- Your Income Tax registration number.
- A copy of your Marriage Certificate, and Antenuptial contract (if applicable).
- Cost: Expect a fee of around R900 for FICA processing.
These responsibilities are key to ensuring a smooth and successful sale.