Hidden Costs of Selling Property in South Africa – What Every Seller Needs to Know

Selling a property in South Africa involves more than just finding a buyer. Many sellers are surprised by the number of costs and responsibilities they must handle before the transfer can go through. This guide breaks down the key expenses and considerations to help you prepare — and avoid unexpected financial strain.

Bond Cancellation Costs

If your property is bonded, you’ll need to cancel the bond before transfer. This includes settling the outstanding balance, giving 90 days’ notice to avoid penalties, and paying bond cancellation attorney fees. Early settlement penalties may also apply depending on your bank.

Conveyancing Attorney Fees

While the buyer typically pays the transfer attorney, sellers may need to appoint a bond cancellation attorney. These fees are regulated but vary depending on the property value.

Compliance Certificates

Sellers are responsible for providing valid certificates for:

• Electrical compliance
• Gas installation (if applicable)
• Electric fence system (if applicable)
• Plumbing (in some municipalities)
• Beetle and various other applicable certificates (in coastal areas)

If repairs are needed to pass inspection, those costs fall to the seller.

If you used an estate agent, commission (typically 5–7%) is payable on registration. This is usually deducted from the proceeds of the sale.

Body Corporate or HOA Levies

If your property is part of a sectional title or estate, you’ll need a levy clearance certificate. This may include outstanding levies, special levies, and advance payments.

Repairs and Maintenance

Buyers may request certain repairs before transfer. These are negotiable but often fall to the seller.

Municipal Clearance Figures – A Critical Step in Property Transfers

When selling a property in South Africa, one of the most important — and often overlooked — requirements is obtaining a Rates Clearance Certificate from the local municipality. This certificate is legally required by the Deeds Office to proceed with the transfer of ownership.

To issue this certificate, municipalities require full settlement of:

• All outstanding charges for rates, water, electricity, refuse, and other services
• Up to six months’ advance billing (depending on the municipality), referred to as Extended Clearance Figures

These consolidated amounts are known as Municipal Rates Clearance Figures, and they can be unexpectedly high. Sellers are frequently unaware of this obligation until the sale is already in progress — after the offer to purchase has been signed and the estate agent has fulfilled their duties. At this stage, discovering a large municipal debt can place significant financial strain on the seller and, in some cases, even cause the transaction to fall through.

Why Sellers Often Miss This Cost — And How MDS Can Help

At Municipal Debt Specialist (MDS), we regularly assist sellers who are blindsided by high clearance figures. These figures may be driven by:

• Simply struggling financially and falling into arrears over the years
• Historical billing errors
• Incorrect tariff applications
• Delays in account closures
• Unresolved disputes with the municipality

Without a valid clearance certificate, the property cannot be transferred, regardless of how far the sale has progressed.

This is where MDS becomes an essential partner. With over 14,000 successful cases and a landmark Constitutional Court victory that reshaped municipal debt law, we offer a proven solution to reduce excessive municipal charges and ensure your property transfer proceeds smoothly.

How MDS Saves You Money — With No Risk

We offer a comprehensive, risk-free service designed to protect sellers from overpaying and to streamline the clearance process:

• Free Analysis: We provide a no-obligation review of your municipal clearance figures.
• Same-Day Response: Our team acts quickly to assess your case and begin negotiations.
• No Upfront Costs: You pay nothing unless we achieve a saving.
• Performance-Based Fees: Our fee is recovered from the savings we create — if we don’t save you money, you don’t pay.
• Legal Expertise: Our work is backed by deep legal knowledge and collaboration with top advocates.
• Fast-Track Approvals: We liaise directly with municipalities to expedite the clearance process and avoid delays.

Whether you’re selling in Ekurhuleni or the City of Tshwane, MDS is your trusted partner in navigating municipal debt and protecting your financial interests.

LIVE SMART