There is often confusion between a Seller and Purchaser about who pays the transfer costs to the conveyancer in a sale of immovable property.
The Purchaser is responsible for payment of the transfer costs to the conveyancer, including the transfer fees and disbursements such as the deeds office fee, rates clearance application fee, postages and petties etc.
The Seller is responsible for the payment of rates to the municipality.
In the case of a property in a Sectional Title scheme, the Seller will also be liable for payment of the levies to the Body Corporate.
However, because rates and levies are payable three months in advance, and the Purchaser may take transfer of the property before the expiration of the three months, the Purchaser is liable for their pro-rata share of rates and levies.
Some Conveyancers will often include an estimate of the Purchaser’s pro-rata share of rates and levies in their proforma accounts; however, the exact amount will be calculated and reflected in the final account once the transaction has registered at the Deeds Office.