Additional costs of buying a home include transfer of property and transfer duty. The former is a fee charged for the transfer of the property from seller to buyer, while the latter is a tax on the transfer.
So, how does the transfer of property work? The buyer pays a conveyancing attorney, hired by the seller, a fee dependent on the cost of the home loan.
Documents required by the buyer include:
- Copy of ID.
- Transfer duty receipt (if applicable).
- FICA documents.
- Transfer duty exemption certificate (if applicable).
Some additional documents required for the seller:
- Power of Attorney signed by the seller.
- Rates Clearance Certificate, which confirms that the seller’s rates and tax accounts are up to date.
- Compliance certificates ( Electrical, electric fence (where applicable), gas and beetle) obtained by the seller.
Documents prepared by the conveyancing attorney:
- Draft of the title deed.
- Section 42(1) Certificate.
- Consent from the Master of the High Court.
Some documents may only apply in certain cases, such as if the property is part of the inheritance, part of a sectional title estate, or where the property was awarded as part of a divorce settlement.
The conveyancing attorney will help prepare most of the documentation and can advise the buyer/seller on what is required.