Quick answer
Before signing, ask questions that expose the full cash obligation and the consequences of delay or failure. Confirm whether the price is VAT-inclusive or subject to transfer duty, what value and acquisition date will be used, which transfer and bond costs are estimates, how much cash the loan will not cover, who holds the deposit, what finance and guarantee conditions must be met, and what happens if costs change.
How to use this guide
Do not rely on an assumed cooling-off period or a verbal promise that “the bank covers everything”. The written sale and loan documents must answer the risk questions.
Questions about price and tax
Ask whether the stated price includes VAT and, if so, what facts make the sale a taxable supply. If transfer duty applies, ask which current SARS table, acquisition date and property value will be used. Find out whether any extra consideration, valuation or exemption issue is expected.
The transfer duty glossary explains the tax category. Your pre-signing objective is not to calculate every cent; it is to avoid a contract built on the wrong tax assumption.
Questions about finance
Ask how much finance is required, which lender conditions must be satisfied, when approval and guarantees are due, and what happens if approval is lower than the application. Confirm whether the finance clause refers to a principal amount only or also to another requirement.
Request a cash-to-transfer estimate showing the deposit, price balance and costs not financed. Ask whether your own funds must be available before transfer duty, legal accounts or guarantees can be processed.
Questions about the deposit
Identify the authorised trust holder, due date, interest arrangement, payment reference and release conditions. Ask what the agreement says if a suspensive condition fails, a party breaches or the sale is cancelled. Do not send the deposit until the account has been independently verified.
If the estate agent or another participant describes the deposit differently from the contract, resolve the discrepancy before signing. A later email should not silently rewrite the trust and release terms.
Questions about legal and registry costs
Ask which firm will handle transfer and which will handle the new mortgage bond. Request separate estimates identifying professional fees, VAT, Deeds Office charges and disbursements. Confirm the purchase value, bond amount, instruction date and guideline or agreement used.
The buyer cost guide explains these lines. Before signature, ask what can still change and which party bears the change under the proposed agreement.
Questions about the calculation snapshot
Ask when the estimate was prepared and which purchase price, acquisition date, bond amount and official schedules it assumes. Find out which lines are fixed, which are guideline-based, which await a third-party figure and which will be reconciled after registration. A single total without those status labels cannot show the amount of cash still at risk.
Request separate figures for the transfer and bond instructions even if the same practice appears in both. Ask whether VAT is included in the professional-fee lines and whether registry charges are based on the transfer value or bond amount relevant to the particular act. The purpose is not to negotiate an official tax or prescribed registry amount, but to understand the source and whether the quote uses the right facts.
If a rate or schedule changes before payment or lodgement, ask who will update the estimate and how the difference will be funded. Keep the original snapshot so any revision can be reconciled.
Questions about occupation and adjustments
Ask when occupation may start, who pays occupational rent, who carries utilities, insurance, rates and levies, and how amounts will be apportioned at registration. If occupation could precede transfer, identify the practical and financial consequences of a prolonged delay.
Confirm which compliance certificates, repairs, clearances or approvals the seller must obtain and what happens if they are late or disputed. These terms can create cash flows outside the standard transfer estimate.
Questions about breach and amendments
Ask what notice is required before cancellation or enforcement, where notices must be delivered and what costs or damages may be claimed. Do not accept a broad waiver, admission or penalty clause without understanding its reach.
If someone proposes an addendum, extension or changed finance condition, compare it with the original agreement line by line. Record what right, deadline, cost or risk moves from one party to the other.
Questions if the transaction cannot proceed
Ask what the agreement says about the deposit, guarantees, already-incurred legal work and third-party disbursements if a suspensive condition fails or the sale ends. Do not assume that every amount is automatically forfeited or automatically refundable. The reason for termination, operative clauses, mandates and actual work or expenses all need to be identified.
Find out who will issue the closing account, what evidence will accompany deductions and how an unused advance will be reconciled. If one party alleges breach, ask whether payment of a disputed amount would be treated as an admission or whether advice is needed on an appropriately recorded arrangement.
These questions belong before signature because they expose the downside as well as the successful-transfer budget. They do not predict cancellation or give either party a remedy outside the signed terms.
Questions about payment security
Establish the bank-verification process before any invoice arrives. Ask which trusted telephone number, matter identifier and second-channel confirmation the appointed firm uses. Treat an unexpected account change as a stop signal.
The property transfer checklist can organise these answers. If a structure, tax issue or clause remains unclear, the lawyer directory can support independent provider discovery before signature.
What to get in writing
Request the complete signed version, all annexures, a dated cost schedule, lender quotation, deposit instructions and a milestone list. Keep the person responsible and expected evidence beside each open question.
Good questions cannot make a transaction risk-free. They can prevent a buyer from discovering after signature that the tax treatment, cash contribution, deposit release or delay consequences were materially different from what was assumed.
FAQs
Should I sign before receiving exact transfer costs?
Some figures may remain estimates, but you should understand every category, calculation basis, likely cash requirement and change trigger before becoming bound.
What should I ask about the deposit?
Ask who will hold it, when it is due, whether interest accrues, when it may be released and what the agreement says if a condition fails or the sale ends.
Does a finance clause cover a cost shortfall?
Not necessarily. Read the approved loan amount and the agreement's finance condition, then compare both with the price and costs that must be paid in cash.
Can I assume there is a cooling-off period?
No. Do not sign on that assumption. Any statutory or contractual cancellation right is fact-specific and should be checked before signature.
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Legal note
This article is general legal information for South African readers. It is not legal advice. Speak to a qualified legal professional about your specific facts before taking action.