Many people are aware that when you buy a property, you are responsible for the transfer fees. What many people are unaware of, is all the hidden costs that accompany the sale of property.

It often happens that people have made provision for the sale price of the property, including the transfer fees, but have not made provision for all the other costs that are necessary to finalize a sale. This article will highlight these hidden costs on both the part of the seller and the buyer. This list is not exhaustive.

Seller

• Cancellation fee: to remove the mortgage bond from the title deed and deed’s office
• Early Determination Fee: a fee charged for cancellation of the bond prior to the date agreed upon initially
• Levies / Rates & Taxes on the property (if applicable)  - This amount is calculated for 4 months in advance.
• Electrical wiring, electrical fence, and gas Compliance Certificates
• Estate’s Agent Commission
• Amendments on the Title Deed (if applicable, e.g. one of the owner’s has passed away, now the surviving owner wants to sell the property, the title deed will first have to be amended)

Buyer

• Transfer and Bond registration Fee’s
• Transfer duty payable to SARS

It is of major importance that the buyer and seller realize, these costs need to be available in cash.

My advice would be to speak to a Conveyancer before starting the process of buying or selling a property.