Additional Costs

From GoPlett
Jump to navigation Jump to search

Additional Costs that you will incure when selling your home.

  • Legal Costs associated with Selling your Property

Buyer

  • Buyer The costs payable by the purchaser in acquiring the property are as follows;
  • Transfer Duty: Transfer duty to the SA Revenue Services in the form of a once-off real estate tax. If the property purchased is to be registered in the name of a close corporation, company or inter vivo's trust, transfer duty at a rate of 10% of the gross purchase price will be payable. If the purchaser is a natural person, he or she will pay 0% on the first R150 000 of the purchase price, 5% on the amount between R150 001 and R320 000, and 8% on the amount exceeding R320 000. Should the seller be a registered vendor for Value Added Tax purposes, VAT at a rate of 14% will be built into the purchase price and the purchaser will not pay transfer duty.
  • Conveyancers Costs: The transfer costs of the seller's conveyancer, may vary slightly according to the rates set by the conveyancer who attends to the transfer, and are based on tariffs from the law society. When purchasing a property, a purchaser is normally required to pay the purchase price and costs in three stages;
  • A 10% deposit of the gross purchase price to the real estate company on signature of the deed of sale by both parties. This amount is held by the real estate company in their trust account, pending registration of transfer, and interest thereon accrues to the purchaser.
  • The balance of the purchase price is lodged with the conveyancer just prior to the registration of the transfer.
  • The transfer costs are payable about 4 weeks prior to the date of transfer so that lodgment can be effected in the deeds registry of the relevant transfer documents for examination. The balance of the purchase price together with any occupational rental and the share of the current year's rates and taxes (levied by the local authority) will be payable against registration of transfer.

Seller

  • The seller is responsible for the payment of the estate agent's commission. The tariff commission recommended by the Institute of Estate Agents is set at 7.5% of the gross purchase price. These commission amounts attract VAT at a rate of 14% and commission rates may vary from region to region.

TRANSFER DUTY ACT

  • The Minister of Finance announced new rate of Transfer Duty in his budget speech on 19 February 2004 . Sales affected All sales of property to natural persons on or after 1 March 2004 will benefit from the new lower rates. Sales to Companies, Close Corporations, Trusts etc. will still attract Transfer Duty of 10% of the price.

Property value - Tax rates

  • R0 - R150 000 0%
  • R150 001 - R320 000 5%
  • above R150 000 R320 001 and above R8 500 plus 8% on the value above R320 000

Transfer Duty

  • R200 000 - R2 500
  • R300 000 - R7 500
  • R500 000 - R22 900
  • R750 000 - R38 500
  • R1 000 000 - R62 900
  • R1 500 000 - R102 900
  • R2 000 000 - R142 900


These prices can change. Please make sure of costs with your conveyancer before making any commitments.