06/09/2026
🏡📚 EDUCATIONAL SUNDAY | KNOW YOUR PROPERTY COSTS! 📚🏡
Buying or selling property is exciting, but there’s more to the price than the number on the Offer to Purchase! 💰
Understanding the costs upfront can prevent nasty surprises later. So, let’s break it down! 👇
🔑 IF YOU ARE SELLING YOUR PROPERTY
As a seller, there are several costs and requirements you need to plan for:
💰 Estate agent’s commission
If you are selling through an estate agent, the agreed commission and VAT on the commission are payable from the proceeds of the sale.
🏠 Bond cancellation costs
If there is an existing bond over the property, you will generally need to give the bank the required notice and pay the conveyancer’s bond-cancellation costs.
📑 Rates & taxes clearance
Your municipal account needs to be up to date and the conveyancer will obtain the necessary rates clearance figures. Depending on the municipality, you may need to pay amounts in advance to obtain the clearance certificate.
🏢 Levy clearance, sectional title/estate properties
If your property is in a sectional-title scheme or estate, outstanding levies and the required levy-clearance amounts need to be dealt with before transfer.
⚡ Compliance certificates
Depending on the property and circumstances, certificates may be required for electrical installations and other installations such as gas, electric fencing or water-related systems.
🧾 Capital Gains Tax (CGT)
A profit on the sale of a property may have CGT implications. The rules depend on your circumstances, how the property was used, how long you owned it and applicable exclusions. SARS confirms that CGT can apply to individuals, companies and trusts.
⚠️ Other possible costs
There may also be costs relating to repairs, compliance work, municipal accounts, outstanding amounts, bond shortfalls or other obligations.
👉 IMPORTANT: Your selling price is not necessarily the amount you will walk away with. Ask your property practitioner/conveyancer for an estimated seller’s net proceeds statement so you know what to expect.
🔑 IF YOU ARE BUYING A PROPERTY
The purchase price is only one part of the equation!
💸 Transfer Duty
If the transaction is not subject to VAT, the buyer is generally responsible for transfer duty. The current SARS rates start at 0% up to R1,210,000 and increase progressively thereafter.
📑 Transfer costs
The conveyancer handling the transfer charges professional/legal fees and associated transfer expenses.
🏦 Bond registration costs
If you are financing the purchase with a bond, there will be additional costs for registering the bond, including conveyancing fees and related charges.
💳 Bank/bond-related costs
Depending on your lender and loan, there may be bank initiation or other financing-related costs.
🏠 Rates, levies & utility adjustments
Amounts may need to be adjusted between buyer and seller at transfer, depending on the property and the relevant accounts.
🛡️ Insurance
If you're financing the property, your bank will generally require appropriate building insurance. You should also budget for your own insurance needs.
🔧 Moving & initial property costs
Don't forget the practical costs. Moving, security, repairs, maintenance, renovations, appliances and getting your new home ready!
🏢 BUYING IN A COMPANY NAME?
If your buyer is a company, don't leave the paperwork until the last minute!
You may need to provide things such as:
📌 Company registration documents
📌 Company registration number
📌 Directors’ identification documents
📌 Proof of residential address
📌 Tax/VAT information where applicable
📌 Company resolution authorising the purchase
📌 Details of authorised signatories
📌 Beneficial-owner information
📌 Proof of funding
📌 Any additional documents requested by the conveyancer, bank or compliance department
And remember: buying through a company can have different tax, financing and ongoing administration implications. Get professional advice before deciding how you want to take ownership.
🏛️ BUYING IN A TRUST?
Trust purchases can require additional documentation and should be prepared carefully.
You may need:
📌 Trust deed
📌 Letters of Authority
📌 Trustee identification documents
📌 Proof of address for trustees
📌 Trustee resolution authorising the purchase
📌 Beneficiary information
📌 Tax information
📌 Proof of funding
📌 Any additional compliance documentation requested by the conveyancer or financial institution
⚠️ TIP: Make sure the trustees have the authority to enter into the transaction before signing. A trust purchase can be more complicated than a normal individual purchase.
👨👩👧 BUYING AS A MINOR?
A minor cannot simply approach a property transaction in exactly the same way as an adult.
Additional legal requirements and documentation may apply, including:
📌 Minor’s birth certificate/identification documents
📌 Parent or legal guardian documentation
📌 Consent from the appropriate person(s)
📌 Documentation required by the conveyancer
📌 Potential court or other legal approval, depending on the circumstances and structure of the transaction
⚠️ This is one where professional legal advice is essential BEFORE signing anything.
💡 THE GOLDEN RULE?
Before you sign an Offer to Purchase, ask:
❓ What will I pay as the buyer/seller?
❓ What costs are payable upfront?
❓ What costs are payable at transfer?
❓ Is VAT or transfer duty applicable?
❓ Are there existing bonds, levies or municipal amounts?
❓ Are there compliance certificates required?
❓ What documents do I need to provide?
❓ If I'm buying through a company or trust, is everything correctly structured?
Because the best property transaction isn't just about getting the deal done, it's about knowing what you're getting into! 🏡✨
At Rawson Hartbeespoort Lifestyle, we're here to help you understand the process, connect you with the right professionals and make your property journey as smooth as possible.
📞 076 155 9661
📧 [email protected]
📍 Shop 6, Hartmark, R511, Hartbeespoort
