Selling your home? Avoid these unexpected costs
PUBLISHED 4 APR 2019
Selling your home, at the right time and price, could be one of the best financial decisions you’ll ever make - but it’s worth knowing about the costs involved in a successful sale.
There’s an old saying - you have to spend money to make money. The residential property market is no exception.
Here are some hidden costs that you’ll want to look out for before you hand over the keys.
Cancelling your bond
Before you transfer your home to its new owner, you’ll need to notify your bank so that they can cancel your bond.
Most banks require 60 to 90 days’ notice for bond cancellations. If you leave it too late and notify them less than two months ahead of time, there may be penalties to pay.
Luckily, 60 to 90 days also happens to be a comfortable timeframe for selling most homes. Ideally, you should notify your bank the day your home goes on the market to avoid extra costs.
Settling your municipal accounts
Rates, taxes, and electricity and water accounts are all the responsibility of the property owner - and you’ll need to settle yours before your home can be transferred to its new owner.
- Before a conveyancing attorney can transfer your property, they’ll need a rates and taxes clearance certificate from the City of Cape Town.
- This document verifies that your accounts are paid up to date - and there’s an extra upfront payment you should be aware of.
- To cover the transfer period, the City will ask you to pay between 2 and 6 months’ rates and taxes upfront. If transfer goes through sooner, they’ll refund you the difference.
Making sure your home is compliant
Before your home can be transferred, you’ll need to make sure that your electrical, plumbing, and electric fence systems are in working order and that your property is beetle-free.
After a standard inspection, you’ll be given certificates of compliance which will be used during the transfer process. If your property needs any repairs or maintenance to meet the compliance standards, you’ll be able to have this done ahead of time.
Paying special levies
If your home is a sectional title unit (like most apartments and townhouses are), you’ll be asked to pay a special levy to the body corporate.
This levy is just like the upfront payment you’ll need to make to the City of Cape Town, covering your levy payments until the new owner becomes responsible for them.
Ready to sell? So are we!
If you’re keen to sell your residential property, contact the Cape Realty team today. Our agents are waiting to assist you.
Image Credit: https://pixabay.com/en/real-estate-agent-sale-home-keys-3337032/