Property Transfer Costs South Africa: Complete 2025 Breakdown

Understanding property transfer costs is crucial when buying property in South Africa. This comprehensive guide breaks down every cost involved in 2025, helping you budget accurately and avoid surprises.

Overview of Property Transfer Costs

Property transfer costs in South Africa can range from R15,000 to R50,000 or more, depending on the property value and whether you're taking out a bond. Let's break down each component.

1. Transfer Duty (Paid by Buyer)

Transfer duty is a tax payable to SARS when purchasing property. The rates for 2025 are:

Transfer Duty Examples

• Property value R1,000,000: Transfer duty = R0
• Property value R1,500,000: Transfer duty = R12,000
• Property value R2,000,000: Transfer duty = R41,625
• Property value R3,000,000: Transfer duty = R127,625

2. Conveyancing Fees (Paid by Seller)

Transfer attorneys charge conveyancing fees to handle the legal transfer. While the seller traditionally pays this, it's negotiable. Fees are regulated and based on a sliding scale:

3. Bond Registration Costs (Paid by Buyer)

If you're financing your purchase with a home loan, you'll need to pay bond registration costs. These are similar to conveyancing fees and are based on the loan amount, not property value:

• Bond of R500,000: R5,000 - R8,000 + VAT
• Bond of R1,000,000: R10,000 - R15,000 + VAT
• Bond of R2,000,000: R15,000 - R22,000 + VAT
• Bond of R3,000,000: R20,000 - R30,000 + VAT

4. Deeds Office Fees

The Deeds Office charges fees for registering transfers. These are relatively small compared to other costs:

• Transfer examination fee: R400 - R600
• Registration fee: R300 - R500
• Transfer duty receipt fee: R50 - R100

5. Bond Costs (If Applicable)

Banks charge various fees when granting home loans:

Bank Fees

• Initiation fee: R5,000 - R6,000 (capped by law)
• Valuation fee: R2,000 - R4,000
• Admin fee: R100 - R200 per month
• Bond origination fee: Sometimes waived as a special

6. Additional Certificates and Compliance

Various certificates are required for property transfer:

7. FICA and Admin Costs

• FICA compliance: R500 - R1,000
• Document preparation: R200 - R500
• Postage and petties: R300 - R600
• Sundry expenses: R500 - R1,000

Complete Cost Example

Let's calculate total costs for a R2,000,000 property purchase with a R1,800,000 bond (90% LTV):

Hidden Costs to Consider

Beyond official fees, budget for these additional costs:

• Moving costs: R5,000 - R20,000
• Home insurance: R1,000 - R3,000 per month
• Home inspection: R2,000 - R5,000 (recommended)
• Immediate repairs: Budget 1-3% of property value
• Furniture and appliances: Variable
• Connection fees: Utilities (R500 - R2,000)

Ways to Reduce Transfer Costs

1. Buy Below R1.1 Million

Properties under R1,100,000 attract no transfer duty, saving you thousands. This is especially beneficial for first-time buyers.

2. Negotiate Who Pays What

While there are conventions, all costs are negotiable. Sometimes sellers agree to cover certain buyer costs to close the deal faster.

3. Shop Around for Attorneys

While the seller usually appoints the transfer attorney, buyers can negotiate. Get quotes from multiple attorneys and compare services and fees.

4. Bundle Services

Some law firms offer package deals when handling both transfer and bond registration, potentially saving R2,000 - R5,000.

5. Get Pre-Existing Certificates

If the seller has recent compliance certificates (less than 2 years old), you might be able to use those instead of getting new ones.

Payment Timeline

Understanding when payments are due helps with cash flow planning:

• Deposit: Within 7 days of offer acceptance (typically 10%)
• Transfer duty: Before transfer registration
• Conveyancing fees: Before transfer registration
• Bond costs: Deducted from loan amount at registration
• Certificates: Before transfer (attorney arranges)

Regional Cost Variations

Johannesburg

Rates clearance certificates in Johannesburg can take longer and may cost slightly more (R500-R800). Attorney fees are competitive due to high market activity.

Cape Town

Cape Town often requires additional heritage compliance for older properties (R1,000-R3,000). Conveyancing fees are typically at the higher end due to property values.

Durban

eThekwini Municipality charges R350-R600 for rates clearances. Overall costs are often lower than major metros due to lower property values.

Tax Implications and Deductions

Unfortunately, most property transfer costs are not tax-deductible for private individuals. However:

• Transfer costs increase your property's cost base for CGT purposes
• If buying as investment property, costs may be deductible
• Bond interest is deductible for investment properties
• Keep all receipts for future CGT calculations

Frequently Asked Questions

Do I pay VAT on transfer costs?

Yes, VAT (15%) applies to conveyancing fees, bond registration fees, and most professional services. Transfer duty itself is not subject to VAT.

Can I add transfer costs to my bond?

Most banks will not finance transfer costs separately. However, some allow you to borrow up to 110% of purchase price to cover costs if you qualify.

What if I can't afford transfer costs?

Options include: negotiating with seller to cover costs, buying a cheaper property, saving longer before purchase, or looking into first-time buyer programs.

Conclusion

Property transfer costs in South Africa can total 5-8% of the purchase price when including all fees, deposits, and associated costs. Proper budgeting and understanding these costs upfront prevents financial stress during the transfer process.

Use our Property Transfer Calculator to get an accurate estimate of your specific transfer costs based on property value and location.

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