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Category Advice
On your journey to buying property, or at least in your search for the right opportunity, you would have heard quite a few unfamiliar terms being used. Unless you work in the property industry, most of us do not happen to know the subtle differences between these terms and what they actually mean.
It is the duty of the sales agent or development agent to make you aware of the fees that come with buying a property. Aside from the actual cost of the property, there are other fees which will have to be paid by you, the purchaser because there is a legal and administrative process involved from entities outside of the developer or seller, and it is wise to bank on 8-10% of the purchase price to cover the costs outside of your deposit.
Transfer Fees
For the ownership of a property to be transferred into a buyer's name, there is a legal process which is handled by the conveyancers. They will do all the necessary paperwork and make all the submissions to the relevant local council, or Deeds Office to ensure the property is transferred into your name and that your property bond is registered. As the conveyancing is done by a legal firm, there will also be a cost for their time and expertise in this regard.
Transfer Duty
Contrary to what many may believe, a transfer fee and a transfer duty are not the same thing. One relates to the cost of registering a property in the owner's name - transfer fees- while the is tax related. A transfer duty is a sum of money paid to the South African Revenue Service (SARS) for the purchase of your property. The amount that is paid to SARS is calculated on the value of your property, and you, as the buyer will have to pay this tax. One important thing to note is that only properties which cost more than R900 000 are subject to transfer duty, and most off-plan property, like those developed by Devmco Group, come transfer duty free.
Author: Devmco Realty
