Lawyer Fees when purchasing a property

[WR10]

I purchased a property which is below 500k.

What are the lawyer fees that need to be paid ?

I have a quote which consists of transfer fees and a bond registration fee which equal to +-14k

the bank included the initiation fee to the bond so that is seperate, correct ?

Thank you

 

[azbob]

No transfer fees for property under R600k afaik.

Bond origination fees should be around R10k

 

[RazedInBlack]

No transfer fees for property under R600k afaik.

Bond origination fees should be around R10k

No, you don't pay bond origination fees. The bank pays them a certain amount.

 

[azbob]

No, you don't pay bond origination fees. The bank pays them a certain amount.

Perhaps I used the incorrect term, don't know what it's called but the invoice the lawyer gives you after you sign your bond documents.

 

[Other Pineapple Smurf]

I purchased a property which is below 500k.

What are the lawyer fees that need to be paid ?

I have a quote which consists of transfer fees and a bond registration fee which equal to +-14k

the bank included the initiation fee to the bond so that is seperate, correct ?

Thank you

On another forum I started a thread about buying a house and got some wonderful information from an ex bond originator. Your looking at about R7K and your total costs can be up to R13K

This calculator helps you understand better:

http://www.ooba.co.za/home-loan/calculators/calculators:bond-transfer-costs

 

[InTheWild]

go here -> http://www.ooba.co.za/home-loan/calculators/calculators:bond-transfer-costs

the last 2 properties I bought it was pretty accurate give or take a R100.

 

[WR10]

that link actually states more and i am receiving a discount from the lawyers

So the initation fee is part of the bond.

The bond registration i pay to the lawyers and then tranfer costs, transfer duty is only for over 600k or so ?

 

[azbob]

That calculator is pretty accurate. Thought each law firm added their own markup.

 

[RazedInBlack]

that link actually states more and i am receiving a discount from the lawyers

So the initation fee is part of the bond.

The bond registration i pay to the lawyers and then tranfer costs, transfer duty is only for over 600k or so ?

Theres a difference between Transfer Costs and Transfer Duty. I think the R600K refers to one of the two. Not sure which.

 

[WR10]

im guessing transfer duty

so if im paying around 14k its actually worth it since the calculator says 21k

 

[azbob]

Lawyer that gives discounts? Gtfo troll.

 

[WR10]

Sorry if you dont believe me

 

[TheRidDlerX]

Lawyer that gives discounts? Gtfo troll.

I recently bought a property and i got R4k in total as discount across both parties of lawyers. The calculator was totally off for me though, as i ended up paying about R5-6k more than it said it would cost, less the discount.

 

[RanzB]

Lawyer that gives discounts? Gtfo troll.

Our offices handle conveyancing and we give discounts to almost all clients.

 

[Mila]

That calculator is pretty accurate. Thought each law firm added their own markup.

There is a limit to what they are allowed to ask. The top end is set in stone.iirc

 

[ToxicBunny]

There is a limit to what they are allowed to ask. The top end is set in stone.iirc

That it is, but it doesn't stop them charging all sorts of ridiculous ancillary fees though (like R400 for FICA, etc etc)

 

[Fng]

Theres a difference between Transfer Costs and Transfer Duty. I think the R600K refers to one of the two. Not sure which.

This one and it is paid to Sars.

Its common practice to have 2-3 attorneys involved in a Property sale;

Bond cancellation Attorneys - sellers expense (Bank decides)
Transferring Attorney - buyers expense (seller decides)
Bond registration attorneys - Buyers expense (Bank decides)

Attorneys fees to a certain point are neg. but it seems the ones appointed by the bank can be "hardegat" at times.

 

[WR10]

thanks FNG

i think that posts explains it

i was under the impression the bond registration costs are added to the bond, but that was the initiation costs

and yes most costs are standard but alot can be reduced