It is important to be aware of the costs involved. One of the most common questions sellers ask is, “How much will I actually take home from the sale of my property?” While the dream may be to pocket the entire purchase price, the reality involves certain deductions. The following costs should be factored into your decision-making:
- Real estate agent’s commission, which is typically a percentage of the purchase price.
- If your property is bonded, you will need to settle the remaining balance, along with the attorney’s cancellation fee.
- Costs relating to obtaining the necessary certificates of compliance as well as any repairs that need to be undertaken to meet compliance standards.
- Upfront payment of rates, calculated as a 3-month advance payment (any excess will be reimbursed pro rata after the transfer is registered).
- Any outstanding levies and consent fees if your property is part of a Home Owners Association.
An experienced, trustworthy agent can significantly reduce the anxiety of selling. They can handle many of the more stressful aspects of the process, including negotiating the purchase price, deliberating terms and conditions with prospective purchasers and liaising with the attorneys. Therefore, it is imperative that you choose an agent that is knowledgeable and trustworthy.
As the seller, you have the right to appoint the transferring attorney who will oversee the transfer of your property. While suggestions may come from the agent or purchaser, ultimately, the decision is yours, for it is your asset at stake. Selecting a dependable attorney ensures your interests are prioritised and protected throughout the process.
If the buyer is purchasing the property with cash or paying a deposit, ensure that you confirm that the agent has properly vetted the funds. Bear in mind that transactions can be delayed – or even fall through – due to insufficient funds or late payments. To avoid this, insist on proof of the buyer’s financial readiness before proceeding.
Another common issue that can be contentious, is early occupation. Remember, as the seller, you are not obligated to allow the purchaser to occupy the property before the transfer is complete, unless this was explicitly agreed upon in the Offer to Purchase. Do not feel pressured to grant early occupation unless you are entirely comfortable with the arrangement and after all costs have been paid.
Finally, once the Offer to Purchase has been signed by all parties, it becomes a legally binding document (commonly referred to as the Deed of Sale). While it is the duty of the agent to ensure the Offer to Purchase is fully completed, it is helpful for the seller to thoroughly read over the agreement themselves, to ensure completeness and that they understand the terms before signing. As the seller, ensure you receive a fully signed copy to verify that no unauthorised changes have been made.
Selling your home is not just a transaction – it is a journey that requires careful planning, informed decisions, and trusted partnerships. At C & A Friedlander, we take pride in offering all of these. With our expert legal services, we will support you throughout each stage of the transfer process, ensuring your interests are protected and the sale moves forward without a hitch.
For further assistance, you may contact me at leneska@caf.co.za or call on 021 914 5511.
Written by Leneska Lee Koopman
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE).