What Are Property Transfer Costs?
Buying or selling a property in South Africa involves several legal and financial obligations. One of the most important aspects to consider is property transfer costs—the fees associated with legally transferring ownership from the seller to the buyer. Understanding these costs upfront can help buyers and sellers budget effectively and avoid unexpected expenses.
At Burger Huyser Attorneys, we specialise in property law and conveyancing, ensuring that all transactions are smooth, transparent, and legally compliant.
Property transfer costs refer to the legal fees, taxes, and administrative costs incurred during the transfer of property ownership from the seller to the buyer. These costs are over and above the purchase price of the property and must be paid before the property can be registered in the buyer’s name.
What Are the Main Costs Involved in a Property Transfer?
✔ Conveyancing Fees – Paid to the conveyancer handling the legal transfer.
✔ Transfer Duty – A tax paid to the South African Revenue Service (SARS).
✔ Bond Registration Fees – If the buyer takes a home loan, a bond must be registered.
✔ Deeds Office Fees – Charged for registering the property at the Deeds Office.
✔ Other Administrative Costs – Such as postage, rates clearance certificates, and compliance certificates.
How Much Are Property Transfer Costs in South Africa?
Property transfer costs depend on factors such as the value of the property, whether a bond is required, and legal fees set by conveyancers. Below is a breakdown of the major costs:
1. Transfer Duty (Tax Paid to SARS) – Paid by the Buyer
If the property is valued at over R1,100,000, the buyer must pay transfer duty to SARS. Properties below R1,100,000 are exempt from transfer duty.
| Property Value | Transfer Duty Payable |
| Up to R1,100,000 | No transfer duty (Exempt) |
| R1,100,001 – R1,500,000 | 3% of the value above R1,100,000 |
| R1,500,001 – R2,500,000 | R12,000 + 5% of the value above R1,500,000 |
| R2,500,001+ | R62,000 + 8% of the value above R2,500,000 |
Example: If you buy a house for R2,000,000, your transfer duty will be:
R12,000 + (5% of R500,000) = R12,000 + R25,000 = R37,000
2. Conveyancing Fees – Paid by the Buyer
Conveyancing fees are paid to the attorney responsible for transferring the property. These fees are regulated by guidelines from the Legal Practice Council, but they vary between law firms.
| Property Value | Estimated Conveyancing Fees (Excl. VAT) |
| R500,000 | R10,000 – R12,000 |
| R1,000,000 | R18,000 – R22,000 |
| R2,000,000 | R27,000 – R35,000 |
| R3,000,000 | R35,000 – R45,000 |
3. Bond Registration Fees – Paid by the Buyer
If the buyer is financing the purchase with a home loan, bond registration fees must be paid to the bond attorney handling the registration. These fees are separate from transfer fees and are based on the bond amount.
| Bond Amount | Estimated Bond Registration Fee (Excl. VAT) |
| R500,000 | R10,000 – R12,000 |
| R1,000,000 | R18,000 – R22,000 |
| R2,000,000 | R27,000 – R35,000 |
4. Deeds Office Fees – Paid by the Buyer
The Deeds Office charges a fee for registering the property transfer and, if applicable, the bond registration. These fees are relatively low but still form part of the overall costs.
| Property Value | Deeds Office Fee |
| R500,000 – R1,000,000 | ± R1,300 |
| R1,000,001 – R2,000,000 | ± R2,000 |
| R2,000,001+ | ± R3,000 |
Who Pays for Property Transfer Costs?
✔ Buyer Pays:
- Conveyancing transfer fees
- Transfer duty (if applicable)
- Bond registration fees (if taking a home loan)
- Deeds Office fees
✔ Seller Pays:
- Estate agent’s commission (if applicable)
- Bond cancellation fees (if they have an existing home loan)
- Municipal clearance certificates and compliance certificates
Additional Costs to Consider
Apart from the main transfer costs, additional administrative expenses may include:
✅ Municipal Rates Clearance Certificate: The seller must pay any outstanding municipal rates before the property transfer can be completed.
✅ Electrical, Gas, and Plumbing Compliance Certificates: Required for legal compliance when selling a property.
✅ Levy Clearance Certificate: If the property is in a complex or sectional title scheme, levies must be cleared before the transfer.
Why Choose Burger Huyser Attorneys for Your Property Transfer?
At Burger Huyser Attorneys, we provide top-quality conveyancing services with transparent pricing and expert legal guidance. Our services include:
✔ Accurate Cost Estimates – No hidden fees!
✔ Fast & Efficient Property Transfers – We handle all legal processes professionally.
✔ Personalised Support – We keep you informed at every step of the process.
✔ Experienced Conveyancers – Specialists in property law and real estate transactions.
Need Help with Your Property Transfer? Contact Us Today!
If you’re buying or selling a property in South Africa, let Burger Huyser Attorneys guide you through the transfer process smoothly and affordably.
Let Burger Huyser Attorneys make your property transaction stress-free and legally secure. Contact us today.
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
