TRANSFER AND BOND COSTS: ALIENATION OF LAND ACT SALES

by Taryn Davies Stevens • 1 MIN • 216 Words

These are property sales where the Buyer pays a deposit but does not intend to take transfer for at least a year. In the meantime, he will pay monthly instalments to cover the accruing interest on the balance of the purchase price. Many people usually talk of “selling on deed of sale" when they are referring to such sales. The expression is incorrect as all sales, whether in cash or on terms, are by deed of sale (your "offer to purchase", when signed by the Seller, is also a deed of sale), but the cliché has stuck to such sales. A more correct name would be a "terms deed of sale".

The important cost here to the buyer is the attorney's recordal fee. He has to record the contract against the title deed of the property before the Seller is entitled to any payment on the purchase price.

It is important to know that transfer duty is payable within six months of the date of sale. No interest accrues on the duty during this time but, if transfer duty is paid later or only on registration of transfer a few years later, interest at the rate of 10% per annum is payable for each completed month outstanding.

CREDIT:

Property Law Publications

John Gilchrist

082 904 1300

transfer costsbond costsalienation of land actsaleproperty

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