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.