One of the most common points of confusion for property buyers and sellers in South Africa is the full cost of a transfer. Transfer duty, attorney fees, bond registration fees - the numbers add up quickly and if you're not prepared, they can catch you out.
Homely's transfer cost calculator gives you a clear, accurate breakdown of all the costs involved in a property transaction. Here's how to use it and how to understand what it tells you.
What the Calculator Covers
The calculator produces two views: one for buyers and one for sellers.
For buyers, the calculator shows:
- Transfer duty (the government tax based on the purchase price)
- Transferring attorney fees (the conveyancer's fees for handling the ownership transfer)
- Bond registration fees (the attorneys' fees for registering your home loan at the Deeds Office)
- Bond initiation fee (the bank's once-off fee for approving your loan)
- Total upfront cash required (combining all the above)
For sellers, the calculator shows:
- Estate agent commission (if applicable, based on the rate you enter)
- Bond cancellation fee (if you have an existing bond)
- Compliance certificate costs (estimated)
- Your estimated net proceeds after all costs
How to Use It
1. Enter the purchase price. This is the agreed sale price, not your estimate of market value.
2. Enter the bond amount. If you're a buyer taking a 100% bond, this equals the purchase price. If you have a deposit, subtract it. The bond amount affects bond registration fees.
3. Select buyer or seller view. The calculator switches between showing costs from the buyer's perspective and the seller's perspective.
4. For sellers: enter commission rate. Enter the agent's commission rate (or 0% if you're selling privately). This shows you the impact of commission on your net proceeds.
5. Read the results. The calculator shows individual line items and a total. For buyers, this is the total cash needed on top of the deposit. For sellers, this is your net proceeds after costs.
Common Questions
Why does the buyer pay the transferring attorney if the seller appoints them? This is simply how the South African system works. The seller appoints the transferring attorney but the buyer pays their fees. It's a market convention, not a logical arrangement.
Can these costs be included in the bond? Generally no. Transfer costs must be paid in cash at transfer. Some banks allow the bond initiation fee to be added to the loan, but transfer duty and attorney fees cannot be bonded. This surprises many first-time buyers.
Why does VAT apply to some items but not others? Transfer duty is a government tax and has no VAT. Attorney fees are professional services and attract VAT at 15%. The calculator handles this automatically.