Final closing of a property transaction
One must always budget for final costs of concluding a property transaction. It’s critical to understand what the costs are to close the deal.
Many first-time buyers get caught off-guard by closing costs.
Closing costs encompass a variety of expenses above the sale price. These include lending fees (from the bank) and insurance. Another more costly expense is the transfer duty. This is a government tax, charged when one person transfers a property to another. It’s a duty payable by the purchaser to the transferring attorney who will pay it over to SARS.
Attorneys fees for the bond registration costs and property transfer. Transfer attorneys arrange the transfer of the property from the seller to the buyer. They ensure that the Deeds Office registers the property in the buyer’s name.
Finally, there is the registration fee. This is a fee charged by the deeds office for the legal registration of the mortgage bond. The fee varies depending on the amount of the home loan.
These fees are payable before the transfer of the property can occur.
