Selling Your Home
Everything you need to know about selling property in South Africa.
Do I need an estate agent to sell my home in South Africa?
No. You can sell your home privately in South Africa without using an estate agent. The legal transfer must still go through a registered conveyancer, but there's no legal requirement to use an agent. Selling privately can save you 5-7.5% commission plus VAT - typically R115 000 to R172 500 on a R2 million property.
What commission do estate agents charge in South Africa?
Estate agent commission in South Africa is not fixed by law - it's freely negotiable. The most common rates quoted are 5% to 7.5% of the sale price plus VAT at 15%. On a R2 million property at 6% plus VAT, that's R138 000. Always negotiate and get multiple quotes before signing a mandate.
What documents do I need to sell my house?
To sell your home you'll need: your South African ID or passport, proof of residential address (not older than 3 months), your title deed (or your conveyancer can retrieve it), compliance certificates (electrical COC, gas if applicable, electric fence if applicable), and rates clearance from your municipality. If your property is sectional title, you'll also need a levy clearance certificate from the body corporate.
What are compliance certificates and who pays for them?
Compliance certificates confirm that specific installations on your property meet legal standards. The seller is responsible for providing (and paying for) them. You may need: an Electrical Certificate of Compliance (required for all properties), a Gas Certificate (if you have gas), an Electric Fence Certificate (if you have an electric fence), and a Beetle Certificate (in some provinces). Total cost varies from R5 000 to R20 000+ depending on your property.
How long does it take to sell a property in South Africa?
From listing to transfer, the total process typically takes 10-16 weeks in a normal market. The transfer process alone (from signed OTP to registration) takes 6-12 weeks. The main variable is municipal rates clearance, which can take 4-6 weeks for major metros. Choosing a proactive conveyancer and being organised with documents speeds things up.
What is a sole mandate vs an open mandate?
A sole mandate gives one agent the exclusive right to market and sell your property for the duration of the mandate (typically 8-12 weeks). An open mandate allows multiple agents to market your property simultaneously, with the agent who brings the successful buyer earning the commission. Sole mandates often come with a slightly lower commission rate but give the agent more certainty, which may mean more investment in marketing.
Can I cancel an Offer to Purchase after signing?
Once both parties have signed the OTP and all suspensive conditions (like bond approval) are fulfilled, it becomes a binding contract. Withdrawing has legal consequences - the other party can sue for specific performance or damages. Before conditions are met (e.g. while bond approval is pending), the situation is more nuanced. Don't sign an OTP unless you're certain you want to proceed.
What is capital gains tax on a property sale?
For your primary residence, the first R2 million of capital gain is excluded from CGT - so most homeowners pay no CGT when selling their home they live in. For investment properties or gains above R2 million, CGT applies at 40% inclusion rate for individuals (meaning 40% of the gain is added to your taxable income and taxed at your marginal rate). The annual CGT exclusion of R40 000 applies to everyone.
How do I price my home correctly?
Base your price on comparable sales - what similar properties in your area have actually sold for in the last 3-6 months. Not listed for - sold for. Factor in current market conditions (buyer's vs seller's market), your net proceeds target after costs, and leave a small negotiating margin (3-5%). Properties priced correctly from day one typically sell faster and closer to asking price than those that start high and reduce.
What is occupational rent and when is it payable?
Occupational rent is payable when a buyer takes occupation of a property before transfer is registered. It's calculated at a daily rate based on prime interest rate applied to the purchase price. On a R2 million property at prime (11.25%), it's approximately R6 164 per month. This is paid to the seller, who is still technically the owner until transfer.