The costs that are involved when you are selling property in Cape Town include:

• Brokerage
• Transfer Costs
• Beetle & Electrical Certificates
• Registration Costs
• Stamp Duty
• Attorney’s Fees

Brokerage is payable where an estate agent is responsible for concluding a sale of property. Brokerage is customarily payable by the seller who will mandate the estate agent to procure a purchaser for the property.

The seller is also responsible for the cost of procuring a 'beetle free and electrical compliance' certificate.
The purchaser is responsible for the payment of transfer costs and the costs of registering any new mortgage bonds over the property purchased. Transfer costs include transfer duty calculated using the following formula, payable to the Receiver of Revenue:

R0 - R100 000 Exempt
5% between R100 100 – R300 000
8% on the balance
Where the shares/members interest and loan claims in a property owning company/close corporation are purchased, the purchaser may save on transfer duty thereby ensuring a considerable saving in acquisition costs.

Stamp duty, which is a nominal amount, is payable on transferring of shares from a seller to a purchaser.

The Receiver of Revenue requires stamp duty on all new mortgage bonds registered, calculated at 20c per R100.00 (or 0.2%) borrowed. Attorneys' fees for attending to the transfer and registration of mortgage bonds are calculated according to a tariff. Further sundry charges are imposed by the Deeds Registry and the Bank granting financial assistance.

For any further information about the “hidden” costs involved in selling property in Cape Town, please don’t hesitate to contact us.