One of the biggest surprises for first-time buyers - and even experienced buyers - is how much cash you need beyond the deposit to complete a property purchase in South Africa. The combined costs of transfer duty, conveyancing fees, and bond registration can add up to 8-12% of the purchase price. Understanding these costs before you make an offer is essential.
The Four Main Cost Categories
When you buy property in South Africa, you'll encounter costs in four main categories:
- Transfer duty (paid to the government via SARS)
- Transferring attorney fees (paid to the conveyancing attorney handling the transfer)
- Bond registration fees (paid to the bond registration attorneys - if you're getting a bond)
- Bond cancellation fees (paid to the seller's bank's attorneys - if the seller has a bond)
1. Transfer Duty
Transfer duty is a government tax paid by the buyer. It's calculated on a sliding scale:
| Purchase Price | Transfer Duty |
|---|---|
| Up to R1,210,000 | R0 |
| R1,500,000 | R8,700 |
| R2,000,000 | R33,786 |
| R2,500,000 | R67,200 |
| R3,000,000 | R107,356 |
Properties bought from VAT-registered developers (new builds) are exempt from transfer duty - VAT is included in the purchase price instead.
2. Transferring Attorney Fees
The transferring attorney manages the legal ownership transfer. Fees are based on the purchase price:
| Purchase Price | Fee (incl. VAT) |
|---|---|
| R1,000,000 | ~R20,700 |
| R1,500,000 | ~R26,450 |
| R2,000,000 | ~R31,050 |
| R2,500,000 | ~R35,650 |
| R3,000,000 | ~R41,400 |
The buyer pays these fees, despite the attorney being appointed by the seller.
3. Bond Registration Fees
If you're taking a home loan, bond registration attorneys register your bond at the Deeds Office:
| Bond Amount | Fee (incl. VAT) |
|---|---|
| R1,000,000 | ~R19,550 |
| R1,500,000 | ~R24,150 |
| R2,000,000 | ~R28,175 |
| R2,500,000 | ~R31,625 |
Total Transfer Costs: Real-World Examples
R1,500,000 property with 90% bond (R1,350,000):
- Transfer duty: R8,700
- Transferring attorney (incl. VAT): ~R26,450
- Bond registration (incl. VAT): ~R22,000
- Bond initiation fee: ~R6,940
- Total: approximately R64,090
R2,500,000 property with 90% bond (R2,250,000):
- Transfer duty: R67,200
- Transferring attorney (incl. VAT): ~R35,650
- Bond registration (incl. VAT): ~R30,475
- Bond initiation fee: ~R6,940
- Total: approximately R140,265
Important Notes
Transfer costs cannot typically be bonded. These must be paid in cash in addition to your deposit. A common shock for first-time buyers is discovering they need significantly more cash than just the deposit.
Occupation rental. If you occupy the property before transfer is registered (which is common), you pay the seller occupational rent for that period - typically calculated at the prime interest rate on the purchase price, divided monthly.
Use Homely's calculator. Homely's transfer cost calculator provides accurate figures for any property value and bond amount, including all costs in one view.