Selling a property in South Africa is a vital process that calls for sound knowledge of the country’s real estate market. One essential requirement is the Property Condition Report. This document requires you to truthfully and accurately disclose an in-depth assessment of the property’s condition, detailing any faults, structural issues, or much-needed maintenance. The report could have an enormous influence on the final selling price because it offers a clear and full picture of the house’s state to potential buyers.
However, sellers should also be aware of the costs they may encounter when selling their property. These may include:
Compliance Certificates: Sellers are legally obliged to provide certain certificates verifying the condition of the property. These certificates may include an Electrical Compliance Certificate, Gas Compliance Certificate, an electric fence certificate, Water Installation Compliance Certificate, and Beetle Certificate (especially in coastal areas). The cost to obtain these certificates can vary and will usually fall on the seller’s shoulders.
Bond Cancellation Costs: If there is an existing bond on the property, a cancellation attorney will be appointed by the bank to cancel it, and the seller is typically responsible for these fees.
Rates and Taxes: Sellers are required to obtain a rates clearance certificate showing that all the municipal rates and taxes have been paid.
Early Settled Account: Should there be an outstanding amount on the home loan, financial institutions may charge an early settled account fee.
These costs should be considered to effectively plan a successful and profitable property selling venture in South Africa.