Purchase price deposit
This is a payment made to secure the property. The amount will be stated in the Offer to Purchase contract and varies according to the property value.
Attorney bond costs
A fee that is paid by a customer to the attorney to register a mortgage bond in favour of the bank. This amount varies as per the legal conveyancing fees schedule.
Attorney transferring costs
A fee that is paid to the attorney nominated by the seller to transfer ownership of the property. This amount varies as per the legal conveyancing fees schedule.
Transfer duty and VAT
This government tax, which you need to pay is based on the purchase price or the open market value of the property, whichever is higher.
In property sales, either transfer duty or VAT will be applicable depending on whether the seller's line of business is property trading. Transfer duty is not applicable in respect of tribal land however the transaction may attract VAT, depending on the type of seller.
Depending on whether or not a purchaser is a citizen or non-citizen, transfer duty is charged as follows; whether one is a first-time property buyer. If so, one is exempt from payment of transfer duty for the whole value of the property.
If not a first-time buyer, the person will be exempt from payment of transfer duty on the first P1 million of the open market value of the property or the purchase price, whichever is higher. For anything over and above P1 million, 5% transfer duty is charged. Non-citizens pay 30% of the purchase price.
Initiation fee
A fee charged by FNB to process your home loan application. See annual pricing guide for details. FNB will debit this fee to your home loan on registration.
Valuation fee
A fee paid by you to the valuers nominated by the bank to do an evaluation on the house for a home loan application where the fee is regulated by REAC. This amount varies as per the REAC fees schedule.