Real Estate Practices in South Africa
Overview of Real Estate Practices in South Africa
Sales Commission in South Africa is paid by the seller at a quoted rate of 7.5% (excluding 14% VAT) of the purchase price however commission is negotiable. Rentals commission is paid by the lessor at a quoted rate of 8% (excluding 14% VAT) of the annual lease value.
Transaction costs including transfer of ownership costs on the purchase of property are paid by the buyer and amount to approximately 7% of the purchase price. Non-residents are able to qualify for mortgage finance up to 65% of the purchase price. In certain circumstances, Capital Gains Tax will be payable upon selling a property.