Commission on Property Sales in South Africa
What is commission on property sales?
Commission on property sales is a percentage of the sale price in exchange for selling your property, which is paid to the real estate agents and brokers that facilitated the sale.
Are commission rates on property sales regulated?
Commission rates aren’t regulated and are actually set by individual agents. The rates vary from district to district and from state to state, depending on the agent and state of the local housing market.
Who pays the commission?
Payment of the commission comes from the party that gave the agent the mandate to find or sell the home.
When is the commission paid?
The commission is only paid to the agent once ownership of the property has been officially transferred to the buyer or when the property has been successfully sold.
What is the commission on property sales in South Africa?
The average estate agent’s commission is usually up to about 7.5 percent of the sale price of the property. However, there is no regulation in South Africa as to how much commission an agent should be paid per sale.
What does the seller pay when selling a house in South Africa?
The property seller will pay three to six months’ worth of rates and taxes to the local council to ensure that those costs are covered during the house selling process.
Who pays transfer fees when selling a property in South Africa?
Transfer fees are paid by the buyer of the property.
What Estate duty in South Africa?
Estate duty is the name for inheritance tax in South Africa, which is a property tax payable on all estates with a net worth in excess of R3,500,000.
