1. Budget, Budget, Budget!! There are transfer costs and mortgage bond costs which will more than often be paid to different attorneys. The banks DO NOT advance the transfer duty, which is the biggest component of your transfer costs. Have your transfer duty monies available as it’s required at least one month before transfer.
2. The banks charge an Initiation Fee of approximately R 5 700.00 for your bond. You must add this onto your bond costs calculations. See http://www.avidfirefly.co.za/?attorneyCode=95105& for a calculation of the transfer and bond costs.
3. Please remember that occupation dates and transfer dates can be different. If you move in before registration of transfer of the property into your name you will have to pay occupational interest payable one month in advance to the transferring attorneys.
4. If you move in early, check on the insurance of the property. The Seller should insure the property up to registration of transfer and you as the Purchaser can be held liable for a pro rata contribution.
5. If you were to move in prior to the date of transfer, you are liable for a pro rata contribution of the rates and taxes as well, calculated from the date of occupation until the date of transfer. If these extra costs are to be avoided then insert in your offer to purchase: “possession and vacant occupation on registration of transfer”.