What Is the Meaning of Transfer Costs in South Africa?

Transfer costs in South Africa are the combined amounts required to transfer ownership of immovable property into a buyer’s name at the relevant Deeds Registry. They commonly comprise transfer duty, the transferring conveyancer’s professional fee, VAT on taxable professional charges, Deeds Office fees and transaction-specific disbursements. Bond registration costs are separate.

What “Transfer Costs” Actually Means

“Transfer costs” is an umbrella term, not the name of one charge. It covers the tax, legal work and registry charges associated with changing registered ownership. Transfer duty is only one component and may be nil where the property falls within the applicable zero-rate bracket.

The buyer customarily pays the transfer costs and any separate bond registration costs. The seller generally appoints the transferring conveyancer and deals with items such as rates or levy clearance and applicable compliance certificates. The signed offer to purchase remains decisive: the parties may allocate particular expenses differently if their agreement states this clearly.

The Line Items in the Bundle

Line item	What it covers	Recipient
Transfer duty	Tax calculated under the Transfer Duty Act 40 of 1949	SARS, through the conveyancer
Transfer fee	The conveyancer’s work to prepare and register the transfer	Transferring conveyancer
VAT	Usually 15% on taxable professional fees and charges	SARS, accounted for by the VAT vendor
Deeds Office fee	Examination and registration of the deed	Deeds Registry
Disbursements	Necessary items such as searches, electronic services, postage and FICA administration	Relevant service provider

Transfer Duty: How It Is Calculated

Transfer duty is payable by the person acquiring the property and is based on the property’s value. SARS may require supporting evidence where the declared consideration does not reflect fair value. The conveyancer submits the declaration and normally makes payment on the buyer’s behalf. A property sale in the course of a VAT-registered seller’s enterprise may instead be subject to VAT and exempt from transfer duty, so the transaction must be classified correctly.

For acquisitions from 1 April 2026, SARS publishes the following brackets:

Property value	Transfer duty
R1–R1 210 000	0%
R1 210 001–R1 663 800	3% of the value above R1 210 000
R1 663 801–R2 329 300	R13 614 plus 6% above R1 663 800
R2 329 301–R2 994 800	R53 544 plus 8% above R2 329 300
R2 994 801–R13 310 000	R106 784 plus 11% above R2 994 800
Above R13 310 000	R1 241 456 plus 13% above R13 310 000

Rates depend on the acquisition date and can change. Buyers should therefore verify the current SARS table rather than rely on an old calculator or quotation.

Conveyancing Fees: Who Sets Them and Why They Move

The transfer fee pays for the conveyancer’s professional work and usually rises with the property value. Published conveyancing fee guidelines are commonly used when preparing quotations, but a buyer should obtain a written, itemised quote for the actual transaction rather than assume an online table is a binding total. VAT at the standard 15% rate is ordinarily added to taxable professional fees.

Bond registration involves a separate instruction, account and fee. Its cost may differ according to the bond amount, the lender’s requirements and the work required.

Deeds Office Fees and Where They Fit

The Deeds Registry charges its own prescribed registration fee. From 1 April 2026, the transfer fee ranges from R50 for property valued at no more than R100 000 to R7 751 for property above R20 million, with value bands between those points. It is separate from both transfer duty and the conveyancer’s fee.

The correct registry is determined by the area in which the property is registered, not by the buyer’s home address. South Africa’s official registry list includes Bloemfontein, Cape Town, Johannesburg, Kimberley, Mbombela, Mthatha, Pietermaritzburg, Polokwane, Pretoria, Qonce and Vryburg.

Transfer Costs vs Bond Costs (Comparison)

Cost item	Transfer costs	Bond costs
Professional fee	Preparing and registering the transfer deed	Preparing and registering the mortgage bond
VAT	On taxable transfer-attorney charges	On taxable bond-attorney charges
Deeds Office fee	Transfer registration	Bond registration
Transfer duty	Yes, unless zero-rated or exempt	No
Bank charges	No bank initiation fee	May include a lender’s initiation fee
Who usually pays?	Buyer	Buyer

What Buyers Should Budget for Cash at Registration

A single percentage is unreliable because transfer duty is progressive and nil within the first bracket. Ask for a transaction-specific estimate before signing the offer to purchase, then keep the following amounts separate:

• deposit or purchase-price shortfall;
• transfer duty at the rate applying on the acquisition date;
• the transfer fee, VAT, Deeds Office fee and disbursements;
• bond registration costs, if the purchase is financed;
• moving expenses and any agreed rates or levy adjustments.

For a R1.5 million acquisition under the rates effective from 1 April 2026, transfer duty alone is R8 700 and the prescribed transfer-registration fee is R1 738. The complete total must still add the conveyancer’s quoted fee, VAT and disbursements, plus any separate bond costs.

How the Conveyancer Fits In

The seller usually appoints the transferring conveyancer. That conveyancer verifies the parties under FICA, conducts deeds searches, obtains financial and clearance information, prepares the transfer-duty declaration and deed, arranges signatures, coordinates guarantees and lodges the linked deeds for simultaneous registration.

A bond registration attorney acts for the buyer’s lender, while a cancellation attorney acts for the seller’s lender where an existing bond must be cancelled. These may be different firms. The Deeds Office indicates that compliant deeds should be available within 17 days after lodgement, but the work before lodgement means the complete transaction often takes longer and no fixed completion date can be guaranteed.

What to Look for in a Conveyancer

• Proper credentials: confirm that the practitioner is admitted and enrolled as a conveyancer and may lawfully handle trust money.
• An itemised estimate: distinguish duty, registry charges, professional fees, VAT, disbursements and bond costs.
• Registry experience: the national law is consistent, but document queries and turnaround times can differ.
• Clear updates: ask how progress, requisitions and delays will be communicated.
• Coordination: confirm who will liaise with the estate agent, banks, municipality, body corporate and other attorneys.

Burger Huyser Attorneys’ Notarial and Conveyancing practice includes Amanda le Roux, a qualified Notary and Conveyancer based at the Bedfordview branch.

Frequently Asked Questions

Are transfer costs paid by the buyer or the seller?

The buyer customarily pays transfer duty, the transfer conveyancing account, VAT and the Deeds Office transfer fee. The seller generally pays agreed seller-side clearance and compliance costs. The offer to purchase can allocate particular expenses differently, so its wording must be checked.

What is included in transfer costs?

Transfer costs usually include transfer duty, the conveyancer’s transfer fee, VAT on taxable professional charges, the Deeds Office registration fee and necessary disbursements. Bond registration costs are separate.

How much are transfer costs on a R1.5 million property?

Under rates effective from 1 April 2026, transfer duty on R1.5 million is R8 700 and the transfer-registration fee is R1 738. Add the transaction-specific conveyancing fee, VAT and disbursements, as well as separate bond costs if applicable.

Do first-time buyers pay transfer duty?

First-time buyers are subject to the same transfer-duty brackets as other individual buyers. No duty is payable when the property value falls within the general zero-rate bracket; this is based on value, not first-time-buyer status.

Why do the conveyancing fees keep changing?

Quoted conveyancing amounts can change when professional fee guidelines, VAT, Deeds Office fees or transaction requirements change. Obtain a current written quotation that itemises each component.

Can transfer costs be added to the bond?

Transfer costs are not automatically added to a home loan. A buyer may finance them only if the lender approves a sufficient loan under its valuation, loan-to-value and affordability rules; otherwise the buyer must provide the cash.

If you are buying property and need a clear, itemised estimate, contact Burger Huyser Attorneys’ Bedfordview branch on 011 201 7190. The firm’s Notarial and Conveyancing practice can explain the transfer process, likely timing and documents required for your transaction. Burger Huyser Attorneys has a 4.8/5 average from 250+ Google reviews, verified by Trustindex.