PROPERTY FINANCE
1 . Bond initiation fee
Your bank will charge you for initiating and opening your bond . This fee may not exceed R6,037 . It can be added to your bond amount if necessary , but you ’ ll save on the interest charges if you pay it upfront .
2 . Legal Fees
Buying a home generally involves three types of conveyancing attorneys , who each charge a fee : bond attorneys , cancellation attorneys and transfer attorneys . The bond attorney will register your bond and prepare the related documents . Their fee is based on the bond amount to be registered , guidelines issued by the Law Society of South Africa and the type of property , with sectional title properties attracting additional costs .
You might be able to negotiate slightly but expect to pay around R15,000 ex VAT for a R500,000 bond and R55,000 ex VAT for a R5 million bond .
A bond cancellation attorney is required to cancel an existing bond on a property - for example , if you have a bond on another property you ’ ve sold ( perhaps in order to buy your new home ). ( You will require the services of a cancellation attorney when your bond is paid up too .) This fee is independent of the required “ 90 -day ” penalty interest a bondholder is entitled to charge when the bond is under cancellation .
Fees will be according to the Law Society of South Africa ’ s conveyancing fees guidelines . The average bond cancellation fee for cancelling one mortgage bond ranges between R 4800 – R 5200 ( an additional fee will be added for an additional bond to be cancelled )
The transfer attorney is appointed by the seller but the buyer pays them for registering ownership of the property in the buyer ’ s name with the Deeds Office . Their fee is based on the property ' s value and according to guidelines issued by the Law Society of South Africa .
80 DECEMBER 2022 / JANUARY 2023 SA Real Estate Investor Magazine