Transfer Cost Components and Calculations

Understanding how property transfer costs are calculated in South Africa is essential for anyone involved in property transactions. At Burger Huyser Attorneys, we break down these calculations to help you understand exactly what you’ll need to budget for your property transfer.

1. Transfer Duty Calculation

Transfer duty is calculated on a sliding scale based on property value:

Property Value Rate
R0 – R1,000,000 0%
R1,000,001 – R1,375,000 3% of value above R1m
R1,375,001 – R1,925,000 R11,250 + 6% of value above R1,375,000
R1,925,001 – R2,475,000 R44,250 + 8% of value above R1,925,000
R2,475,001 and above R88,250 + 11% of value above R2,475,000

Example Calculation: For a R2,000,000 property:

  • First R1,925,000: R44,250
  • Remaining R75,000 × 8% = R6,000
  • Total Transfer Duty: R50,250

2. Conveyancing Fees Calculation

Conveyancing fees are calculated based on the purchase price:

Purchase Price Range Approximate Fee (excluding VAT)
R0 – R500,000 R7,500 – R14,000
R500,001 – R1,000,000 R14,000 – R17,000
R1,000,001 – R2,000,000 R17,000 – R25,000
R2,000,001 – R5,000,000 R25,000 – R45,000

Additional costs include:

  • VAT (15% of professional fees)
  • Deeds Office levies
  • Electronic document generation
  • Postage and petties

3. Bond Registration Cost Calculation

Bond registration costs are calculated similarly to transfer fees:

Bond Amount Approximate Fee (excluding VAT)
R0 – R500,000 R6,500 – R13,000
R500,001 – R1,000,000 R13,000 – R16,000
R1,000,001 – R2,000,000 R16,000 – R23,000
R2,000,001 – R5,000,000 R23,000 – R42,000

Plus:

  • Bank initiation fee (maximum R6,037.50 including VAT)
  • Deeds Office registration fee
  • Post/petties and FICA requirements

Additional Cost Calculations

Municipal Rates and Taxes

Calculated as follows:

  1. Current account settlement
  2. Rates clearance figure (typically 4-6 months advance payment)
  3. Administrative fees

Compliance Certificates

Standard costs include:

  • Electrical: R1,000 – R1,500
  • Electric Fence: R1,200 – R1,800
  • Gas: R500 – R800
  • Water: R500 – R1,000
  • Beetle (if required): R800 – R1,200

Plus any remedial work required

Practical Example of Total Cost Calculation

For a R2,000,000 property with 90% bond:

  1. Transfer Costs:
  • Transfer Duty: R50,250
  • Transfer Attorney Fees: R23,000
  • VAT on Fees: R3,450
  • Deeds Office Levy: R1,200
  • Other Disbursements: R2,500 Subtotal: R80,400
  1. Bond Costs (R1,800,000 bond):
  • Bond Attorney Fees: R21,000
  • VAT on Fees: R3,150
  • Deeds Office Levy: R1,200
  • Bank Initiation Fee: R6,037.50
  • Other Disbursements: R2,000 Subtotal: R33,387.50
  1. Additional Costs:
  • Rates Clearance: R15,000
  • Compliance Certificates: R4,000 Subtotal: R19,000

Total Transfer Costs: R132,787.50

Cost-Saving Considerations

Timing Impacts on Calculations

  • Municipal rates calculations
  • Transfer duty submission timing
  • Compliance certificate coordination
  • Bond registration timing

Document Preparation Efficiency

  • Proper documentation reduces delays and costs
  • Early FICA compliance saves time
  • Coordinated certificate inspections
  • Prompt response to information requests

Our Service Commitment

At Burger Huyser Attorneys, we provide:

  • Detailed cost calculations upfront
  • Regular updates on cost changes
  • Transparent fee structures
  • Efficient process management
  • Cost-saving recommendations

Contact Burger Huyser Attorneys for Accurate Calculations

Let our experienced team provide you with:

  • Detailed cost breakdowns
  • Customised calculations
  • Professional guidance
  • Clear explanations
  • Regular updates

Understanding property transfer cost calculations helps you plan effectively. Contact Burger Huyser Attorneys today for accurate, professional calculation of your property transfer costs.

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358;  Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699; Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE