Selling a property can be both an exciting, and a stressful time. It’s often coupled with the purchase of a new home, and if it’s your first time selling, the amount of information and documents that come your way can get confusing. The first thing to know, is that bond cancellation fees aren’t the only cost you can expect to incur. Here are some lesser known costs to factor in so that you aren’t left out of pocket and scrambling to find the money when unexpected costs come your way.
Compliance certificates
As part of the legal process involved in selling your property, you need to obtain and prove both electrical and/or gas compliance of the home. This requires the inspection conducted by a registered electrician who then confirms the property has no electrical faults or issues and will issue the certificate. The seller is required to foot this bill and provide a copy of to both the bank and the buyer.
Rate and taxes clearance
For the property to be transferred from the seller to the buyer, the seller needs to obtain a rates and taxes clearance certificate from their local municipality. This includes a fee that the seller must pay to provide a guarantee that the rates and taxes will be paid during the selling and registration process. Your municipality can ask for between two and six months worth of fees to be paid upfront, and if the process is completed in less time than billed for, the seller will be reimbursed.
While there are more costs elaborated on in Private Property’s 5 unexpected costs when selling your home, these are two of the most relevant and immediate costs to factor in when you begin the process of selling your home.
