- Q: How do you determine your conveyancing fees?
- A: Wikus Strydom Attorneys’ conveyancing fees are based on the tariff recommended by the Law Society of South Africa. A table with the transfer- and bond fees, including transfer duty, is available on our website, or can be obtained from the estates agents in Midstream Estate.
- Q: What is the difference between transfer fees, transfer duty and transfer costs?
- Transfer Fees are the fees charged by the Conveyancer to register a conveyancing matter in the Deeds Office. Transfer duty is the tax payable by the Purchaser of immovable property to the Government. Transfer costs is the term used for the total costs (the conveyancing fees, transfer duty, etc.) of transferring ownership in movable property from the Seller to the Purchaser.
- Q: Besides the transfer fee and transfer duty (if applicable) what other costs are there that I should know of?
A: In addition to the transfer fee and transfer duty, there are other incidental costs which are payable by the Purchaser :
- Deed Search (Aktex)
- Document generation fee
- Fica fee
- Deeds Office registration fee
- Rates and Taxes Clearance Certificate / Levy Clearance Certificate fee
- Pro rata share of rates and taxes (free hold property) / levies (sectional title property)
- Q: When do I have to pay VAT, and when do I have to pay transfer duty?
- A: Transfer duty is payable by the Purchaser of immovable property if the Seller is not registered for VAT (usually private sales between individuals). VAT is payable when the Seller is registered for VAT (usually a sale between a developer / builder and a private individual). The matter of transfer duty / VAT should be very clearly addressed in the Deed of Sale between the Purchaser and the Seller
- Q: What happens with moneys paid into your trust account and invested in terms of Section 78(2A) of the Attorneys Act, 1979.
- A: The money is invested in a separate account with ABSA Business Bank, and the interest earned on the investment accrues to the party stipulated in the Deed of Sale between the Seller and the Purchaser.
- Q: What is the so called “building period”?
A: Every erf in Midstream must be developed and a dwelling built within a specific time frame. The time allowed for the erection of a dwelling is referred to as the building period, and is included as a title condition in the first transfer. The building period may differ from extension to extension, but the general wording is as follows :
“The Transferee or his Successors in Title will be liable to erect a dwelling on the property within ______ months from date of proclamation, failing which the Developer will be entitled, but not obliged to claim that the property is transferred to the Developer at the cost of the Transferee against payment by the Developer of the original purchase price, interest free. The Transferee shall not within the said period sell or transfer the property within the Developer’s written consent. This period can be extended at the discretion of the Developer.” This title condition must be brought forward in every subsequent Title Deed and can only be removed as a title condition once a dwelling has been completed to the satisfaction of the developer, Bondev Midrand (Pty) Ltd.
- Q: What are the consequences of not building within the building period?
- Firstly, the Home Owners Association might take appropriate steps, for example the doubling of levies on the erf. Secondly, Bondev Midrand (Pty) Ltd is entitled, but not obliged to, buy the property back from the registered owner at the time, for the original purchase price received for the erf when it was sold to the first Purchaser.
- Q: Can I sell my erf or register a bond if a dwelling as contemplated in the Title Deed, has not been built yet?
An undeveloped erf cannot be sold or a bond registered without Bondev Midrand (Pty) Ltd’ s consent. All matters relating hereto are handled by my firm and shall be referred to the developer for a decision. It is in Bondev Midrand (Pty) Ltd’s discretion to :
- Refuse consent to the transfer / bond or;
- Consent to the transfer / bond with certain conditions, or
- Buy the erf back at the original purchase price
- Q: Where can I get more information regarding Midstream Estates?
- See their website www.midrand-estates.co.za
- Q: Who can I contact if I’m interested in buying a stand in Midstream?
- Please contact MIDTEAM Estate agents www.midteam.co.za