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NCA Sec 125 • Municipal Sec 118 • Deeds Office Settlement Rules

Seller Net Proceeds & House Selling Cost Calculator

Knowing your sale price minus your bond balance is only half the story. In South Africa, sellers face two distinct cash-flow dates: upfront costs payable before the conveyancer can lodge (Section 118 municipal clearance, levy clearance, and CoC repairs), and registration-day deductions settled from the buyer’s purchase price at transfer.

Two-Stage Conveyancing Cash-Flow Engine • 2026/27 SA Rules

Seller Net Proceeds & Settlement Statement Calculator

A

Sale Price & Bond Settlement

Deducted by the conveyancer on registration day

R2 200 000
R
R500kR2.5mR5mR10m+
R1 150 000
R
90-Day Bond Notice Helper (NCA Sec 125)Penalty: R0
R
B

Estate Agent Commission

Settled directly from sale proceeds at registration

R126 500
5% (5.75% incl. VAT)
Base Commission:R110 000
15% SARS VAT on Commission:R16 500
Total Agent Commission (incl. VAT):R126 500
C

Cash Paid or Due Before Transfer

Upfront out-of-pocket costs required before registration

R
R
R
R
Typically 60–120 days advance billing
R
Set to R0 for freehold homes
R
R
Stage 2 • Registration Day Payout

Estimated Cash Released at Transfer

R917 000

Paid out by the conveyancer on Deeds Office registration day after settling your bond, cancellation fee, and commission.

Stage 1 • Needed Before Registration

Cash Already Paid or Due Earlier

R34 400

Upfront cash required before transfer for Section 118 municipal clearance, levy clearance, CoCs, and repairs.

Combined Bottom-Line After All Costs

True Net Proceeds After All Selling Costs

R882 600
Total Selling Costs (Excl. Bond Balance):R167 400 (7.6% of sale price)
Post-Transfer Clearance Credit Note:Est. ~R7 200 of your advance rates/levy clearance is typically refunded by the council or body corporate 2–4 months after registration.

Itemised Seller Settlement Statement

Gross Property Sale PriceR2 200 000
Part 1: Deductions From Sale Proceeds at Registration (Transfer Day)
Outstanding Bond Settlement Balance- R1 150 000
90-Day Early Termination Interest (0 days remaining @ 11.25%)- R0
Bond Cancellation Attorney Fee (incl. VAT & Deeds Office)- R6 500
Estate Agent Commission (Base: R110 000 + VAT: R16 500)- R126 500
Estimated Cash Released at Transfer (Registration Day)R917 000
Part 2: Upfront Cash Paid or Due Before Registration
Compliance Certificates (CoCs) & Compliance RepairsR12 500
Advance Section 118 Municipal Rates & Levy ClearancesR14 400
Removals, Home Staging & Other Early CostsR7 500
Total Upfront Cash Required Before RegistrationR34 400

Export this itemised statement for your conveyancer, spouse, or bond originator.

Buying Your Next Home?

Plan Your Next Purchase With Your Registration-Day Equity

Note that your R917 000 transfer payout only clears once your sale registers in the Deeds Office. Check SARS transfer duty and bond registration fees on your next home now.

Use R917 000 as Deposit in the Transfer & Bond Calculator

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1. Two-Stage Seller Cash Flow

Why Cash Released at Transfer Differs From Total Net Proceeds

When you accept an Offer to Purchase (OTP), it is easy to assume that every selling expense will simply be deducted from the sale proceeds on registration day. In South African conveyancing practice, selling costs are split into two strict chronological buckets:

Deducted at Transfer (Registration Day)

  • Bank Bond Settlement: Paid directly to your mortgage lender against the bank’s final settlement figure.
  • 90-Day Early Termination Penalty: Included in the bank’s settlement figure if fewer than 90 days’ written notice elapsed.
  • Bond Cancellation Attorney Fee: Typically R5,500 – R7,500 paid on registration to cancel the bond endorsement.
  • Estate Agent Commission (incl. VAT): Paid by the conveyancer from sale proceeds once transfer registers.

Paid Upfront (Before Lodgement)

  • Section 118 Municipal Rates Clearance: Municipalities demand arrears plus 60 to 120 days of advance rates, water, and electricity before issuing the clearance certificate needed to lodge at the Deeds Office.
  • Body Corporate / HOA Levy Clearance: Trustees or managing agents require advance levies paid before issuing a levy clearance certificate.
  • Compliance Certificates (CoCs) & Repairs: Electrical, plumbing/water, gas, electric fence, and beetle contractors generally require payment before releasing valid certificates to the conveyancer.
2. National Credit Act Section 125

How the 90-Day Bond Cancellation Notice Rule Works

Under Section 125 of the National Credit Act (Act 34 of 2005), a mortgage lender is entitled to charge an early termination fee (commonly called the 90-day penalty interest) equal to a maximum of three months’ interest on your outstanding balance if you settle a home loan early.

Three practical rules every South African seller should know:

  1. Give notice the day you list: You do not need a signed Offer to Purchase to send your bank a written 90-day notice letter. Because a typical South African transfer takes 60 to 90 days from signature to registration, notifying your bank when you list usually reduces the penalty to R0.
  2. It reduces pro-rata by the day: If your transfer registers 65 days after your notice was logged, the bank may only charge interest for the remaining 25 days, not the full 90 days.
  3. Zero-balance bonds still require cancellation: Even if you have paid your bond down to R0, the mortgage bond remains registered on your title deed until a bond cancellation attorney formally cancels it at the Deeds Office (`~R6,500`).
3. Simultaneous Transfers & Downsizing

Planning a Simultaneous Sale and Purchase (Buying Before You Sell)

If you are upsizing or downsizing and relying on the equity from your current home to fund your next purchase, timing is critical:

  • Transfer-day cash cannot pay pre-transfer costs without bridging: Your Cash Released at Transfer is only wired after the Deeds Office registers your sale. However, the conveyancer handling your new purchase will request SARS Transfer Duty and conveyancing fees weeks before lodgement. If you do not have separate savings for those upfront purchase costs, speak to your conveyancer early about bridging finance.
  • Subject-to-sale suspensive conditions & 72-hour clauses: When buying before you sell, your purchase offer should be made subject to the successful sale of your existing property, with simultaneous lodgement in the Deeds Office so your sale proceeds secure the purchase price guarantee on your new home.
  • Agree on occupational rent in both contracts: If you move into your new property before transfer registers—or if your buyer moves into yours early—ensure the monthly occupational rent rate and utility responsibilities are explicitly written into the Offer to Purchase.
4. SARS Tax Considerations

Primary Residence Capital Gains Tax (CGT) Note

Under the Eighth Schedule to the South African Income Tax Act, natural persons (or special trusts) selling their primary residence qualify for a statutory Capital Gains Tax exclusion on the first R2,000,000 of capital gain (or a full disregard of capital gain where total gross sale proceeds do not exceed R2,000,000, subject to primary residence use requirements). Note that estate agent commission, compliance certificates, and improvements with valid invoices can generally be added to your base cost when calculating any gain above the R2 million threshold. Properties held as rental investments, holiday homes, or inside companies and ordinary trusts do not qualify for the primary residence exclusion.

Frequently Asked Questions About Selling Costs in SA

Which selling costs are deducted at transfer vs paid upfront before registration?

In South Africa, your outstanding home loan settlement balance, any 90-day early termination interest, the bond cancellation attorney fee, and the estate agent commission (including 15% VAT if applicable) are settled directly from the sale proceeds by the conveyancer on Deeds Office registration day. By contrast, Compliance Certificates (Electrical, Water/Plumbing, Gas, Electric Fence, Beetle), compliance repairs, and 60 to 120 days of advance municipal rates (Section 118) and body corporate or HOA levy clearances must be paid upfront before the transfer can be lodged.

How does the 90-day bond cancellation notice penalty work in South Africa?

Under Section 125 of the National Credit Act (NCA), banks may charge an early termination fee of up to 3 months (90 days) of interest on your outstanding home loan balance if you settle the bond before its full term. However, this penalty reduces day-for-day once you give written notice of your intention to sell. Giving written notice to your bank the day you put your property on the market often eliminates the penalty entirely by the time transfer registers 60 to 90 days later.

Do I still pay bond cancellation attorney fees if my home loan balance is R0?

Yes, unless your bond was formally cancelled in the Deeds Office previously. Even when your bank account shows a R0 balance (for example, on an access bond kept open), the mortgage bond remains endorsed against your title deed. A bank-appointed bond cancellation attorney must lodge a formal consent to cancellation at the Deeds Office alongside the transfer, typically costing between R5,500 and R7,500 including VAT and Deeds Office fees.

Do I get refunded for unused advance municipal rates and levy clearance payments?

Yes. Municipalities require 60 to 120 days of estimated rates, water, electricity, and refuse charges in advance under Section 118 of the Municipal Systems Act before issuing a Rates Clearance Certificate. Once the property registers in the buyer’s name in the Deeds Office, the seller is only liable for charges up to registration day. Any unused credit balance is refunded by the municipality or body corporate after reconciliation, typically within 2 to 4 months after transfer.