Buying or selling a property in South Africa is not just about signing a contract, it is a legal and financial journey that involves a range of professionals, financial institutions, government institutions, paperwork, and often overlooked costs. Whether you are a first-time buyer, a seasoned investor, or a seller preparing to move on from your current home, understanding the true costs of a conveyancing transaction can save you from unpleasant surprises. In this article, we break down the key expenses involved in transferring property ownership, mortgage bond cancellation and mortgage bond registration.
Standard practice is that the seller may appoint a transfer attorney of their choosing and the purchaser is responsible to pay the attorney's fees/costs.
Generally the banks do not allow the fees/costs to be included in the home loan amount unless a special arrangement has been made. This is usually reserved for first-time home buyers and/or affordable housing campaigns.
1. For the buyer:
A proforma account is usually sent to the buyer outlining the below fees/costs.
If the buyer is taking out a home loan, they will receive two accounts. One from the transfer attorney and one from the bond attorney.
The more expensive the property, the higher the fees.
1.1 Transfer attorney fee
- The fee is calculated on a sliding scale tariff based on the purchase price of the property plus VAT. The tariff is provided by the Legal Practice Council of South Africa (The LPC) which is updated from time to time.
1.2 Transfer Duty
- Paid by the transfer attorney to South African Revenue Service (SARS) on behalf of the buyer on properties valued above R1,120,000.00.
- Calculated as a percentage based on the purchase price of the property.
- New threshold effective from 1 April 2025.
- Transfer duty is payable within 6 months of date of sale, even if the transfer is scheduled for much later otherwise penalties start accruing.
See SARS' transfer duty table https://www.sars.gov.za/latest-news/new-transfer-duty-rates-effective-1-april-2025/
1.3 Deeds Office registration fees
- Lodgement and registration fees are paid to the Deeds Office, the amount is calculated on the purchase price of the property.
- Additional transactions incur additional costs.
1.4 Postage & petties:
Charged by the transfer, bond cancellation and bond attorneys to cover costs including but not limited to:
- Printing
- Couriers
- Phone calls
- Emails
1.5 Electronic platforms costs
- The costs involved in receiving and generating electronic documents.
1.6 Levy clearance certificate & Home Owners Association consent fees
- In the event the property is sectional (an apartment) OR
- The owner of the property will become a member of a Home Owners Association (HOA).
- The transfer attorneys are obligated to get clearance from the Body Corporate or a consent from the HOA.
- The fee to obtain these clearances or consents are for the buyer's account.
- Outstanding levies are for the seller's account.
- Special levies are always for the Seller's account and one cannot contract out of this.
1.7 Bond registration fee
- Paid to the bond attorney if a mortgage bond is being registered.
- Similar structure to transfer fee excluding transfer duty.
- Bond initiation fee of R6,037.50 (as at 16 July 2025) for individuals – the buyer usually has the option to add this amount to the home loan or pay it upfront.
Property Ownership and Transfer Calculators – Fairbridges Wertheim Becker
For the seller
2.1 Estate agent's commission
- The commission is negotiated upfront and is typically between 5%-7% of the purchase price plus VAT if the agent is registered for VAT.
- The commission is deducted from the proceeds of the sale by the transfer attorney and paid to the estate agent.
- If a deposit it paid to the estate agent, the estate agent will deduct it from the deposit.
2.2 Rates, electricity, water, sewerage & refuse accounts to the municipality (Rates clearance certificate)
- The seller is responsible for ensuring all municipal accounts are up to date.
- The transfer attorney will apply to the municipality where the property is situated for rates clearance figures.
- The rates clearance figures are typically calculated by taking what is currently owing and multiplying this amount by three or four months.
- This amount is required to be settled up front by the seller.
- A rates clearance certificate is issued after the amount is settled and is only valid for 60 days.
2.3 Outstanding levies (if applicable)
- All levies due to the body corporate or HOA needs to be paid up to date at date of transfer.
2.4 Certificates of compliance
By law, the seller is required to provide the buyer with various compliance certificates (issued by professionals in that field), proving the property is safe and compliant. These include:
Electrical compliance certificate (compulsory)
- If the property has a solar system, the ECC needs to include it.
- In addition, it is mandatory for a seller to disclose if there is a solar system in the deed of sale as well as its age, capacity, compliance status and registration.
Plumbing compliance certificate (compulsory in Cape Town).
Beetle compliance certificate (not a legal requirement but can be agreed to contractually).
Gas certificate (if the property has any gas installations).
Electric fence certificate (compulsory if the property has an electric fence on the boundary).
There are companies that facilitate all the required certificates at a cost.
Industry norm is that an inspection fee of approximately R500.00-R1,000.00 is charged for one inspection. Thereafter a quote will be issued for any remedial work to get the property compliant. An additional fee for the actual certificate of compliance to be issued is not generally charged.
2.5 Bond cancellation attorney fee
- If there is an existing bond on the property, there is a bond cancellation attorney fee of approximately R6,000.00.
- There are Deeds Office fees.
2.6 Capital Gains Tax (CGT)
If you are selling an investment property or a second home, you may be liable for Capital Gains Tax (CGT) on the profit. If it is your primary residence, the first R2M of profit is exempt, you will however be liable for CGT on profits in excess of R2M.
- There is an annual exclusion of R40,000.00. I.e. the first R40,000.00 of profit is not taxed.
- If you're a non-resident, Section 35A of the income tax act applies if the sale price exceeds 2 million resulting in funds having to be retained for CGT.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
