Purchase Price: Deposits, Balances & other payments
Paying a deposit on a purchased property is not mandatory but serves as a gesture of good faith on the part of the Purchaser. This amount will be invested by the Conveyancer in an interest-bearing trust account for the full benefit of the Purchaser.

Provision will be made in the Agreement for a guarantee to be called for in respect of the balance of the purchase price. A guarantee of payment will only be acceptable if issued by a local financial institution. The funds will actually have to be remitted to South Africa in order for a local bank to issue such a guarantee. Alternatively arrangements must be made between a foreign and local bank for a back-to-back guarantee to be issued.

Commission
Commission is payable where an Estate Agent has concluded a sale of immovable property. This commission is customarily payable by the Seller. The Seller is also responsible for the costs of procuring “beetle free” and “electrical compliance” certificates.

The Purchaser is responsible for the payment of Transfer Costs and the costs of registering any new mortgage bonds over the purchased property. Transfer costs include Transfer Duty payable to the Receiver of Revenue calculated using the following formula, based on the purchase price:
R0-R190,000 Exempt
R190,000 – R330,000 @ 5%
R330,000 + @ R7,000 + 8% on the balance above R330,000
10% of purchase price where the Purchaser is not a natural person i.e. a company, cc., trust or shareholder.

Start looking for a home to buy....click here.