Property FAQs
Answers to the most common South African property questions - selling, buying, costs, and legal. Plain language, no jargon.
Selling Your Home
Everything you need to know about selling property in South Africa.
Do I need an estate agent to sell my home in South Africa?
No. You can sell your home privately in South Africa without using an estate agent. The legal transfer must still go through a registered conveyancer, but there's no legal requirement to use an agent. Selling privately can save you 5-7.5% commission plus VAT - typically R115 000 to R172 500 on a R2 million property.
What commission do estate agents charge in South Africa?
Estate agent commission in South Africa is not fixed by law - it's freely negotiable. The most common rates quoted are 5% to 7.5% of the sale price plus VAT at 15%. On a R2 million property at 6% plus VAT, that's R138 000. Always negotiate and get multiple quotes before signing a mandate.
What documents do I need to sell my house?
To sell your home you'll need: your South African ID or passport, proof of residential address (not older than 3 months), your title deed (or your conveyancer can retrieve it), compliance certificates (electrical COC, gas if applicable, electric fence if applicable), and rates clearance from your municipality. If your property is sectional title, you'll also need a levy clearance certificate from the body corporate.
What are compliance certificates and who pays for them?
Compliance certificates confirm that specific installations on your property meet legal standards. The seller is responsible for providing (and paying for) them. You may need: an Electrical Certificate of Compliance (required for all properties), a Gas Certificate (if you have gas), an Electric Fence Certificate (if you have an electric fence), and a Beetle Certificate (in some provinces). Total cost varies from R5 000 to R20 000+ depending on your property.
How long does it take to sell a property in South Africa?
From listing to transfer, the total process typically takes 10-16 weeks in a normal market. The transfer process alone (from signed OTP to registration) takes 6-12 weeks. The main variable is municipal rates clearance, which can take 4-6 weeks for major metros. Choosing a proactive conveyancer and being organised with documents speeds things up.
What is a sole mandate vs an open mandate?
A sole mandate gives one agent the exclusive right to market and sell your property for the duration of the mandate (typically 8-12 weeks). An open mandate allows multiple agents to market your property simultaneously, with the agent who brings the successful buyer earning the commission. Sole mandates often come with a slightly lower commission rate but give the agent more certainty, which may mean more investment in marketing.
Can I cancel an Offer to Purchase after signing?
Once both parties have signed the OTP and all suspensive conditions (like bond approval) are fulfilled, it becomes a binding contract. Withdrawing has legal consequences - the other party can sue for specific performance or damages. Before conditions are met (e.g. while bond approval is pending), the situation is more nuanced. Don't sign an OTP unless you're certain you want to proceed.
What is capital gains tax on a property sale?
For your primary residence, the first R2 million of capital gain is excluded from CGT - so most homeowners pay no CGT when selling their home they live in. For investment properties or gains above R2 million, CGT applies at 40% inclusion rate for individuals (meaning 40% of the gain is added to your taxable income and taxed at your marginal rate). The annual CGT exclusion of R40 000 applies to everyone.
How do I price my home correctly?
Base your price on comparable sales - what similar properties in your area have actually sold for in the last 3-6 months. Not listed for - sold for. Factor in current market conditions (buyer's vs seller's market), your net proceeds target after costs, and leave a small negotiating margin (3-5%). Properties priced correctly from day one typically sell faster and closer to asking price than those that start high and reduce.
What is occupational rent and when is it payable?
Occupational rent is payable when a buyer takes occupation of a property before transfer is registered. It's calculated at a daily rate based on prime interest rate applied to the purchase price. On a R2 million property at prime (11.25%), it's approximately R6 164 per month. This is paid to the seller, who is still technically the owner until transfer.
Buying a Home
Answers to the most common questions South African home buyers ask.
How much deposit do I need to buy a house in South Africa?
There's no fixed minimum by law - South African banks offer 100% home loans. However, a deposit of at least 10% significantly improves your approval chances and often results in a better interest rate. On a R1.5 million property, 10% is R150 000. Remember: even with a 100% bond, you still need cash for transfer duty and attorney fees - budget an additional R50 000 to R150 000 depending on the property price.
What is pre-qualification and do I need it?
Pre-qualification is an assessment of how much a bank is likely to lend you, based on your income, expenses, and credit profile. It's not binding but it's very useful: it sets a realistic budget, makes you more credible to sellers, and often reveals any issues you need to fix before applying. Get pre-qualified through a bond originator (like ooba or BetterBond) - it's free and takes about 20 minutes.
What is an Offer to Purchase (OTP)?
An OTP is the written contract that forms the basis of every property sale in South Africa. When a buyer submits an offer and the seller accepts it (by signing), it becomes a legally binding agreement. It sets out the purchase price, any conditions (typically bond approval within 21-30 days), the occupation date, and what's included in the sale. Read every word before you sign - you can't simply change your mind afterwards.
What is transfer duty and who pays it?
Transfer duty is a government tax paid by the buyer when purchasing property. Under the SARS rates effective from 1 April 2026, properties up to R1.21 million are exempt. Duty is R8 700 on a R1.5 million property and R67 200 on a R2.5 million property. Transfer duty is separate from conveyancing fees - both are paid by the buyer. New builds from VAT-registered developers are exempt from transfer duty (VAT is included in the price instead).
How do South African home loan interest rates work?
South African home loans are variable rate - your interest rate moves with the prime lending rate, which is tied to the SARB repo rate. The prime rate is typically repo + 3.5%. Your bond rate is prime plus or minus a margin based on your risk profile. A strong borrower with a deposit might achieve prime minus 0.5% or better. For every 25 basis point rate change, a R1.5 million bond repayment changes by approximately R285 per month.
What is a sectional title property?
Sectional title means you own your specific unit (apartment, townhouse) plus an undivided share of the common property (gardens, pool, building structure, entrance). You're part of a body corporate with all other owners, which collectively manages and maintains the common areas. You pay a monthly levy to fund this. Before buying, check the body corporate financials, reserve fund level, and any pending special levies.
What is the FLISP subsidy for first-time buyers?
The Finance Linked Individual Subsidy Programme (FLISP) provides a once-off subsidy to qualifying first-time buyers with a monthly income between R3 501 and R22 000. The subsidy ranges from R27 960 to R121 626 depending on income and can be used as a deposit. Applications are made through the bank or bond originator. You must be a South African citizen, married or cohabiting, and buying a property between R100 000 and R1.8 million.
How long does the property transfer process take?
Typically 6-12 weeks from the date the OTP is signed. The main stages are: FICA collection and instruction (week 1-2), rates clearance from municipality (week 2-6), document preparation and signing (week 4-8), lodgement and registration at Deeds Office (week 8-12). The biggest variable is the municipality - City of Johannesburg can take 6-10 weeks for rates clearance; City of Cape Town typically 4-6 weeks.
Can I buy property in South Africa as a foreigner?
Yes. South Africa places no restrictions on foreign nationals buying residential property. You can own in your own name, through a company, or through a trust. Non-residents can get South African home loans but banks typically lend a maximum of 50% of the purchase price. When you sell, a withholding tax (7.5% for individuals) applies on the gross sale amount as a deposit against any CGT liability.
What does a bond originator do and should I use one?
A bond originator submits your home loan application to multiple banks simultaneously and manages the process on your behalf. The service is free to you - they earn a commission from the bank on successful registration. Benefits: multiple bank submissions increase approval chances, banks compete resulting in better rates, and originators know what each bank requires. The main originators are ooba Home Loans and BetterBond. Yes, use one.
Costs & Fees
A complete guide to what property transactions actually cost in South Africa.
How much does homely cost?
homely is completely free to use. Our aim and commitment is to rethink and simplify property - no commissions on your sale price, no listing fees, no subscriptions. You keep what's yours.
So how do we make money?
We're paid advertising fees and referral commissions from our vetted partners (like conveyancers, bond originators and other property services). The app stays free to use, and you're never obligated to use our partners - but we work hard to vet them so they offer you the best deals we can find.
What are all the costs involved in buying a property?
The main costs for buyers are: transfer duty (government tax, 0% up to R1.21 million then a sliding scale), transferring attorney fees, bond registration fees if you have a home loan, and a bank initiation fee. Attorney and bank fees vary, so use homely's calculator for a current estimate and confirm the final quotation with your conveyancer and lender.
What are all the costs involved in selling a property?
Seller costs typically include: estate agent commission if using an agent (5-7.5% plus VAT), compliance certificates (R5 000-R20 000 depending on property), bond cancellation fee (R4 000-R8 000), and a 90-day notice penalty if you haven't given your bank advance notice. If you sell privately, you save the commission and replace it with listing fees (R1 200-R2 400/month) and photography costs (R1 500-R4 000).
What is the difference between transferring attorney fees and bond registration fees?
These are two separate attorney processes: the transferring attorney handles the legal ownership transfer from seller to buyer, while the bond registration attorneys register your home loan at the Deeds Office. Both are paid by the buyer, but they're separate fees to separate attorneys. On a R1.5 million purchase with a R1.35 million bond, you might pay ~R26 000 to the transferring attorney and ~R22 000 to the bond registration attorneys.
Can I add transfer costs to my home loan?
Generally no. Transfer duty and attorney fees must be paid in cash at the time of transfer - they cannot be included in your home loan amount. Some banks allow the bond initiation fee to be capitalised (added to the bond) rather than paid upfront, but this means paying interest on it for the life of the loan. This regularly surprises first-time buyers who have budgeted for a deposit but not for transfer costs.
What are municipal rates and how are they calculated?
Municipal rates are an annual charge from your local municipality, typically billed monthly. They're calculated as: Municipal Valuation × Rates Tariff = Annual Rates Bill. For example: a property valued at R1 500 000 by the municipality with a 1.5% tariff pays R22 500 per year (R1 875/month). Each municipality sets its own tariff. Most offer a rebate on owner-occupied properties by excluding R200 000-R300 000 of the valuation.
What is occupational rent and when is it payable?
Occupational rent is payable when a buyer takes occupation of a property before the transfer is registered (i.e. before they legally own it). It's calculated at a daily rate, typically based on prime interest rate applied to the purchase price, divided by 365. On a R2 million property at prime (11.25%), occupational rent is approximately R6 164 per month. This benefits the seller who is still technically the owner.
What is a body corporate special levy?
A special levy is a once-off additional charge levied by a body corporate (sectional title scheme) when the reserve fund doesn't have enough money to cover a major expense - like roof repairs, building repainting, or lift replacement. Special levies can be R5 000 to R50 000+ per unit. Before buying sectional title, always check the reserve fund level and ask whether any special levies are anticipated.
Are there tax benefits to owning an investment property?
Yes. Rental income from an investment property is taxable, but you can deduct expenses against it: mortgage interest (not the capital portion), municipal rates, insurance, maintenance, management fees, and depreciation. On sale, investment properties are subject to CGT (no primary residence exclusion), but your base cost includes all the transfer costs you paid when buying and any capital improvements made during ownership.
What is the bond cancellation fee?
When a seller with an existing bond sells their property, the bond must be cancelled at transfer. Bond cancellation involves attorney fees (typically R4 000-R8 000) and potentially a notice period penalty. Most banks require 90 days' notice to cancel a bond. If you haven't given notice, the bank charges a penalty equivalent to 90 days' interest on the outstanding balance - on a R1.5 million bond at 11.25%, that's approximately R37 500. Notify your bank as soon as you decide to sell.
What is transfer duty and when is it exempt?
Transfer duty is a government tax paid by the buyer. The SARS rates effective from 1 April 2026 are: 0% up to R1.21 million; 3% to R1.6638 million; 6% to R2.3293 million; 8% to R2.9948 million; 11% to R13.31 million; and 13% above that. Exemptions include new builds from VAT-registered developers, where VAT is included instead, and qualifying restructuring transactions.
Legal & Compliance
The legal framework for South African property transactions - explained clearly.
What is voetstoots and does it protect sellers?
Voetstoots (Afrikaans for 'as is') is a clause in a sale agreement saying the buyer accepts the property in its current condition, including hidden defects. It protects sellers from liability for defects they didn't know about. The critical exception: voetstoots does NOT protect a seller who knew about a defect and deliberately concealed it. If you know about a problem, disclose it in writing - this protects you legally and avoids post-transfer disputes.
What is a Property Disclosure Form and is it mandatory?
Under the Property Practitioners Act, sellers must complete a mandatory Property Disclosure Form before a sale agreement is concluded. This requires disclosure of known defects and material information about the property. Even in a private sale, completing one is strongly advisable - it protects you legally by documenting what you disclosed, and it's required where a registered agent is involved.
What is FICA and why does it apply to property sales?
FICA (Financial Intelligence Centre Act) requires certain professionals - including attorneys, estate agents, and banks - to verify the identity and address of their clients before conducting transactions. In a property transaction, both buyer and seller must provide certified copies of their ID and proof of address (not older than 3 months) to the transferring attorney, bond registration attorneys, and the estate agent. This is a legal requirement, not optional.
What is POPIA and how does it affect my property transaction?
POPIA (Protection of Personal Information Act) governs how your personal data is collected, stored, and used by property professionals. They can only collect information needed for the transaction, must store it securely, and cannot use it for other purposes (like marketing) without your consent. You have the right to know what information they hold about you, to correct inaccuracies, and to complain to the Information Regulator if you believe your data has been mishandled.
What is the PPRA and does an estate agent need to be registered?
The Property Practitioners Regulatory Authority (PPRA) regulates all property practitioners in South Africa. Every estate agent must hold a valid Fidelity Fund Certificate (FFC) from the PPRA. An agent operating without an FFC cannot legally conduct property transactions and cannot claim commission. Always ask to see an agent's FFC before signing a mandate or paying any fees.
What is a conveyancer and do I need one for a private sale?
A conveyancer is a specialist attorney registered with the Deeds Office. In South Africa, all immovable property transfers must be registered by a conveyancer - this is a legal requirement under the Deeds Registries Act. Even in a private sale (no estate agent), you still need a conveyancer to handle the transfer. The buyer pays the transferring attorney's fees; the seller typically appoints them.
What does the Consumer Protection Act mean for property buyers?
The CPA applies to property sales where the seller is in the business of selling property - developers, investors who regularly sell, and agents selling on their own account. When the CPA applies, voetstoots is effectively removed and the seller is liable for defects whether or not they knew about them. For a private homeowner selling their own home as a once-off transaction, the CPA generally does not apply.
What happens if a buyer can't get bond approval?
Most OTPs include a suspensive condition that the buyer must obtain bond approval within a specified period (typically 21-30 days). If the buyer genuinely cannot secure finance, the suspensive condition fails, the OTP falls away, and both parties are released from their obligations. The seller can then relist the property. If bond approval is declined and there's no other cause for the buyer's failure to proceed, neither party has a claim against the other.
What is the National Credit Act (NCA) and how does it affect home loans?
The NCA governs all credit agreements in South Africa, including home loans. Key provisions: banks must conduct a proper affordability assessment before approving any loan; reckless lending is prohibited; the bond initiation fee is capped at R6 037.50 incl. VAT; monthly service fees are capped at R69 excl. VAT; and if you fall behind on repayments, the bank must follow a prescribed legal process (including a section 129 notice) before any repossession.
What are my obligations under FICA as a property seller or buyer?
Both buyer and seller must provide certified copies of their South African ID (or passport for foreign nationals) and proof of residential address not older than three months to the transferring attorney, bond registration attorneys, and estate agent (if applicable). Companies and trusts need additional documentation including registration documents and resolutions. These documents are a legal requirement - the transfer cannot proceed without them.