Possible Foreseen & Unforeseen Costs Payable by the Purchaser
Category Buyers Guide
Purchasing property involves careful consideration of a myriad of costs. Beyond the property's purchase price, buyers need to factor in additional expenses that contribute to the overall financial commitment they plan on making.
Costs for the Purchaser
- The purchase price;
- Transfer Duty calculated on the purchase price;
- Transfer fees & disbursement payable to the Transferring Attorney;
- Bond registration costs payable to the Bond Attorney appointed by the bank to register the bond;
- Costs to obtain a Levy Clearance Certificate and/or Home Owners Association Consent (if applicable);
- Pro rata advance levies (if applicable);
- Costs payable to the Municipality to obtain the Rates Clearance Certificate;
- Occupational rent if occupation is prior to registration.
In addition to the above-mentioned expenses, buyers might contemplate renovating the property. We advise conducting a thorough cost analysis for the desired renovations and allocating a specific budget for these enhancements during the property acquisition process.
City of Cape Town: Process for Purchasers
The municipal account for the new property will be allocated to the purchaser automatically on date of registration. You can contact the City of Cape Town on 0860 103 089 to obtain your new account number, or via email: accounts@capetown.gov.za.
You must have the following information available in order for them to assist you:
- Full name & identity number
- Erf number
- Date of registration
Once you have obtained your account number, you will be able to register to receive your accounts via email. In order to register for this service, you must send an SMS to 31223 with the following information: ACCOUNT NUMBER followed by your EMAIL ADDRESS.
The many costs associated with purchasing a property can significantly impact the final price of the home a buyer is considering. Beyond the listing price, prospective buyers must account for expenses such as the transfer duty, bond costs, and potential renovations. These additional costs can significantly affect the overall investment required to purchase a property.
For any questions or queries about purchasing property, get in contact with our team of professionals at Louw & Coetzee Properties: 021 976 2730.
Read more about pre-approval for a home loan & the type of renovations that add value to a property.
Written by: Hayley Kellerman
Author: Louw & Coetzee Properties
