How Much Does It Cost to Change Ownership of a House in South Africa?

Changing ownership of a house in South Africa typically costs the buyer between 5% and 8% of the purchase price once every line item on the transfer statement is added up. The biggest single component is transfer duty, charged by SARS on a sliding scale from R0 on properties up to R1,210,000 to 13% of the value above R13,310,000; the next-largest is conveyancing fees charged by the transferring attorney on the official tariff published under the Legal Practice Act 28 of 2014, plus VAT at 15%. Smaller but fixed items include Deeds Office registration fees, a postage and petties disbursement, FICA compliance work, and — if there is a bond — bond registration fees plus the bank’s own initiation and valuation fees. Sellers usually pay the rates clearance certificate, the electrical, plumbing, beetle, and electric-fence compliance certificates, body-corporate or HOA clearance, and the bond cancellation figures if a bond is being settled.

What “Changing Ownership” Actually Means in South Africa

Legal ownership of immovable property passes only when the transfer is registered at a Deeds Office against the title deed — a signed sale agreement alone does not transfer ownership. Until the Deeds Office endorses the new owner onto the deed, the seller remains the registered owner in law, even if the buyer has already taken occupation and paid the purchase price.

The transfer is handled by a conveyancing attorney — an admitted attorney who prepares the transfer documents, lodges them at the relevant Deeds Registry, and attends to the financial settlement between the parties on the date of registration.

Two related but separate processes often run alongside the transfer, and the cost statement reflects all three:

• Bond registration — registering the buyer’s new bond against the property. This is handled by the bank’s panel attorney in most cases.
• Bond cancellation — cancelling the seller’s existing bond at registration. This is handled by the cancellation attorney, often the bank’s own attorney.

The same conveyancing firm may handle all three, or the work may be split between the transferring attorney and the bond or cancellation attorney. The cost lines on the statement flow differently depending on the arrangement, which is why it helps to understand each item before comparing quotes.

Who Pays for What: The Standard Buyer/Seller Split

The cost statement on a residential transfer is a mix of buyer-side and seller-side items, and the split is fairly standard across the country. The table below sets out who typically pays each line and what it is based on.

Cost Item	Typically Paid By	Basis
Transfer duty (SARS)	Purchaser	Sliding scale, R0 to 13%
Conveyancing fees (transferring attorney)	Purchaser	Tariff under the Legal Practice Act + VAT
Deeds Office registration fee	Purchaser	Statutory fee, Deeds Registries Act
Postage and petties	Purchaser	Fixed disbursement
FICA compliance work	Purchaser	Built into the attorney’s fees
Bond registration fees	Purchaser	Tariff on the bond amount + VAT
Bank initiation fee	Purchaser	Set by the bank
Bond valuation fee	Purchaser	Set by the bank / panel valuer
Rates clearance certificate	Seller	Municipal charges + admin fee
Electrical / plumbing / beetle / electric-fence compliance certificates	Seller	Fixed per certificate
Body corporate / HOA clearance	Seller	Levies + admin fee
Bond cancellation fees	Seller	Tariff on the outstanding bond amount + VAT
Capital gains tax (CGT)	Seller (on the profit)	SARS assessed; not a transfer-cost item, but part of the seller’s transaction picture

Transfer Duty — The Largest Single Component

Transfer duty is charged by SARS on every property transfer under the Transfer Duty Act 40 of 1949. It is calculated on the higher of the purchase price and the property’s fair market value — SARS can uplift the declared price if it considers the value understated, so deliberately understating the purchase price in the agreement does not save transfer duty.

The current transfer-duty table applies the rates set out below:

Value of Property (R)	Transfer Duty Payable
1 – 1,210,000	0%
1,210,001 – 1,663,800	3% of the value above R1,210,000
1,663,801 – 2,329,300	R13,614 + 6% of the value above R1,663,800
2,329,301 – 2,994,800	R53,544 + 8% of the value above R2,329,300
2,994,801 – 13,310,000	R106,784 + 11% of the value above R2,994,800
13,310,001 and above	R1,241,456 + 13% of the value exceeding R13,310,000

Properties up to R1,210,000 attract R0 transfer duty under the current SARS schedule — the exemption applies across the board, with no first-time-buyer distinction in the Act itself. Above that threshold, the duty rises on the sliding scale set out above.

The buyer pays SARS directly; the transferring attorney calculates and lodges the declaration on the buyer’s behalf as part of the transfer. Transfer duty is a separate transactional tax — it is not VAT, and it is not refundable if the transaction later collapses for reasons unrelated to the duty calculation.

Conveyancing Fees — The Transferring Attorney’s Tariff

Conveyancing fees are prescribed under the Legal Practice Act 28 of 2014 and published by the Legal Practice Council on a sliding scale of the purchase price (not on time spent). The fee is quoted as the tariff figure plus VAT at 15% — a quoted fee should always be read as “tariff + VAT”.

The tariff is a maximum, not a minimum: an attorney may quote below the tariff maximum, and comparison-shopping on price is reasonable. Charging above the maximum without prior written agreement with the client is not lawful. The fee includes the attorney’s work on the transfer — drafting, FICA verification, liaison with SARS, the bond attorney (if any), the cancellation attorney (if any), and lodgement at the Deeds Office.

Always anchor the fee quote to the Legal Practice Council’s current published conveyancing tariff and confirm the schedule effective at the date of instruction before committing. Conveyancing fees are the second-largest line item on most buyer statements after transfer duty, so a below-tariff quote can move the total transfer cost materially.

Deeds Office and Other Fixed Fees

Several fixed fees and disbursements appear on the transfer statement in addition to transfer duty and conveyancing fees:

• Deeds Office registration fee — prescribed under the Deeds Registries Act 47 of 1937; a statutory fee charged on registration of transfer (and separately on registration of a bond). The amount is set in the published tariff and is the same at every Deeds Registry.
• Postage and petties — a fixed disbursement the conveyancer charges to cover lodgement fees, bank charges, and sundry administrative items. The figure is modest but it is a real line item on the statement.
• FICA compliance work — verifying the buyer’s and seller’s identity, address, and source of funds under the Financial Intelligence Centre Act 38 of 2001. FICA work is built into the attorney’s fees rather than charged as a separate line.
• Tax clearance — SARS issues a tax clearance certificate confirming the seller has no outstanding tax matters before transfer; the transferring attorney applies for it on the seller’s behalf.

Bond-Related Costs (If There Is a Bond)

If the buyer is funding the purchase with a mortgage bond, additional costs flow on the statement. None of these are conveyancing fees in the strict sense, but they are part of the total cost of changing ownership:

• Bond registration fees — the bond attorney charges on the published tariff, sliding scale of the bond amount, plus VAT.
• Bank initiation fee — set by the bank, often negotiable; paid directly to the bank and not to the attorney.
• Bond valuation fee — the bank’s valuer assesses the property to confirm it adequately secures the loan; the cost is set by the bank or its panel valuer.
• Cancellation attorney fees — if the seller has an existing bond, the cancellation attorney (often the bank’s own attorney) charges on the published tariff, calculated on the outstanding bond amount at cancellation.
• Early-settlement penalty / interest differential — the bank may charge this if the seller settles the bond before the end of the loan term. It is not a conveyancing cost but a real cost in the seller’s “what do I owe to change ownership” picture.

Seller-Side Costs to Budget For

Sellers carry a separate set of obligations that often come as a surprise the first time around. Each of the items below is the seller’s responsibility and should be budgeted for in addition to the moving costs:

• Rates clearance certificate — issued by the municipality confirming all rates, taxes, water, electricity, refuse, and sewerage charges are paid up to the date of transfer. The seller’s conveyancer applies for it; the figure is the accumulated municipal charges plus an admin fee.
• Compliance certificates (each issued by the relevant registered tradesperson):
  • Electrical installation certificate (COC) — registered electrician.
  • Plumbing certificate — licensed plumber.
  • Beetle-free certificate — registered timber inspector. Required in coastal areas, KwaZulu-Natal, and parts of the Western Cape; confirm with the local municipality whether it applies to a specific property.
  • Electric-fence certificate — accredited installer. Only required if there is an electric fence on the property.
• Body corporate / HOA clearance figure — in sectional-title schemes and estate properties, confirming levies and special contributions are paid up to the date of transfer.
• Bond cancellation figures — the seller’s bank issues a statement of the amount required to settle the bond on the registration date. The figure is usually valid for a limited window and is recalculated if registration slips.
• Capital gains tax (CGT) — SARS assesses on the profit portion of the sale. It is not a transfer-cost line item, but a seller should budget for it as part of the overall transaction cost and consult a tax practitioner.

What Is and Isn’t Negotiable

Not every line on the statement can be negotiated, and knowing which is which avoids wasted time at the quote stage:

• Conveyancing fees — can be quoted below the tariff maximum. Comparison-shopping among attorneys is reasonable. Quoting above the maximum without prior written agreement is not lawful.
• Compliance certificates — paid to the issuing tradesperson; there is room to compare quotes for the electrical, plumbing, and beetle certificates.
• Bank initiation and valuation fees — set by the bank. Buyers can often negotiate these or shop among banks before accepting a bond offer.
• Transfer duty — a tax; not negotiable.
• Deeds Office registration fees — statutory; not negotiable.

Asking a conveyancer for a written breakdown of every line on the statement, rather than a single headline figure, is the single most useful step a buyer or seller can take before instructing. It surfaces the items that are negotiable and confirms that the non-negotiable items are charged at the published rate.

Frequently Asked Questions

How much does it cost to change ownership of a house in South Africa?

As a rule of thumb, the buyer should budget between 5% and 8% of the purchase price for the full set of transfer-related costs — transfer duty, conveyancing fees plus VAT, Deeds Office fees, and bond costs if there is a bond. The exact figure depends on the purchase price, whether there is a bond, the transfer-duty band, and the attorney’s tariff quote. Sellers should budget separately for compliance certificates (typically a few thousand rand each depending on the tradesperson), rates clearance, and bond cancellation figures if applicable.

Who pays transfer duty — the buyer or the seller?

The buyer pays transfer duty in full. It is calculated on the higher of the purchase price or fair market value, collected by SARS via the transferring attorney on the buyer’s behalf. Properties up to R1,210,000 currently attract R0 transfer duty; above that, a sliding scale applies, rising to 13% of the value above R13,310,000.

Do conveyancing fees include VAT?

Yes — VAT at the current rate of 15% is added on top of the prescribed tariff fee. A quoted conveyancing fee should always be read as “tariff + VAT”.

How long does it take to change ownership?

An uncomplicated transfer without a bond typically takes 6 to 8 weeks from the signed offer to purchase through to registration at the Deeds Office. With a bond, allow 8 to 12 weeks. The most common causes of delay are the bond registration side, outstanding rates or levies clearance, and missing or invalid compliance certificates.

Can I use the same attorney for the transfer and the bond registration?

In practice the bank that grants the bond usually appoints its own panel attorney to handle bond registration; the buyer chooses the transferring attorney. Some buyers instruct the same firm to handle both sides if the bank permits it — confirm with the bank before instructing.

Do I need a conveyancing attorney, or can I do the transfer myself?

Only an admitted attorney may prepare and lodge deeds for registration at a Deeds Office — there is no DIY path for a property transfer. The buyer chooses the transferring attorney; the bank chooses, within its panel rules, the bond attorney.

Burger Huyser Attorneys handles property transfers through its head office in Linden, Randburg (49 First Avenue, 011 888 0246) and across its Gauteng branches via admitted Notaries and Conveyancers on staff. The firm can issue a written fee quote on the official conveyancing tariff, attend to FICA verification, lodge the transfer and (in coordination with the bond attorney) the bond registration at the relevant Deeds Registry, and arrange the rates and compliance certificate work on the seller’s side. Initial consultations can be booked through the head office directly or through the branch nearest to the property.