WHAT YOU SHOULD KNOW BEFORE SELLING YOUR PROPERTY
Selling or buying property is one the biggest financial and emotional commitments you can make. The conveyancing process is complicated and having the correct advice and assistance is essential to ensuring a smooth transaction with no hidden surprises. Below is a step-by-step guide to selling your property.
- THE SALES AGREEMENT
By law, the sales agreement for immovable property must be in writing and signed by both the seller and buyer. The purpose of the agreement is to set performance timelines and moving dates, while also outlining any special conditions, variances and specific items. The sale agreement governs all aspects related to the sale, and can only be amended when both parties are in agreement
- THE STATE OF YOUR PROPERTY AND DISCLOSURE
Most properties are sold voetstoots. However, with current legislation and good practice, it is recommended that the buyer is provided with a disclosure document concerning the state of the property and possible defects, as confirmed by the seller. This allows the buyer to make the offer, while being aware of any potential defects.
- INFORMATION THAT HELPS TO EXPEDITE YOUR MATTER
Copy of ID
Proof of residence (specifically rates and levy statements)
Income tax reference number
Bond account number*
Marital status details and confirmatory documents (eg. Decree of divorce) if changed since acquiring the property
4. COUNCIL CLEARANCE FIGURES AND REFUNDS
In Nelson Mandela Bay they charge a month in advance, for rates, water, electricity, sewerage
and refuse removal before issuing a clearance amount. A rates clearance certificate from your
local municipality is required before transfer can take place.
Different councils follow different refund processes for the portion that the seller pays in advance.
This can be bridged from the proceeds or paid into Yolande Smith Inc.’s Trust account for onward transmission to council to obtain the necessary clearance certificate.
5. MOVING/OCCUPATION DATES AND TRANSFER DATE IMPLICATIONS
You can either choose to take occupation on a specific date or on registration of transfer. If a specific date before registration of transfer is chosen, an amount for occupational rent will have to be set. Moving is stressful and once occupation dates are agreed upon, only a written alteration to the agreement from both parties will allow such to be changed.
6. YOUR POSSIBLE COSTS IN THE PROCESS
Compliance certificates – Electrical, electric fence, gas, beetle (coastal regions), plumbing, water (cape region).
Estate agents commission – Settled directly by Yolande Smith Inc. from proceeds on registration.
Rates clearance figures – Obtaining rates figures is an issue that a council consultant may also be appointed to assist with.
FICA fee.
Levy/Home Owners Association clearance figures, where applicable.
Where applicable Bond cancellation costs – Give 90 day’s notice to avoid penalty interest on bond cancellation.
Bond cancellation attorney fees are also payable.