Don’t forget these two extra costs when registering your bond
When purchasing a home and registering a bond, a purchaser must be prepared to pay not only the bond registration attorneys’ fees, but a few incidental costs as well.
The attorneys’ fees are calculated on an upward sliding scale directly proportional to the bond amount. Other costs include:
#1 The bank’s initiation fee
This is an amount charged by the bank for the administration involved in granting the loan. In the past, valuation fees were also charged, but with the introduction of the National Credit Act, all valuation fees are included in the initiation fee. Until recently the initiation fee payable was R5,700, but this amount has been increased to R5,985.
The purchaser has a choice whether to have this amount capitalised to his bond or to pay the fee upfront on registration of the bond.
#2 Sectional title insurance certificate fee
This is an amount payable to the insurer of the sectional title scheme for the issuing of an insurance certificate. The amount varies from scheme to scheme, as it is determined by the specific scheme’s insurer.
At MC van der Berg Inc, provision is made for an amount of R900 which is indicated on the purchaser’s statement of account. Should this amount be more than required for the certificate, the purchaser will be refunded.
Take a look at the MCBondGuide for more