What Are Conveyancing Fees in South Africa?

When buying or selling a property, one of the most common questions is: Who pays the conveyancing fees? Understanding who is responsible for these fees is essential for budgeting and ensuring a smooth property transaction. At Burger Huyser Attorneys, we specialise in conveyancing and are here to provide clarity on this important topic. 

Conveyancing fees are the costs associated with the legal transfer of property ownership from the seller to the buyer. These fees cover the services of a conveyancer or conveyancing attorney, who handles the preparation and lodging of legal documents, ensures compliance with South African property laws, and facilitates the smooth transfer of ownership. Conveyancing fees include professional fees, Deeds Office fees, transfer duty, and other administrative costs.

Who is Responsible for Paying Conveyancing Fees?

In South Africa, the responsibility for paying conveyancing fees is generally divided between the buyer and the seller, depending on the specific costs involved. Here’s a breakdown of who pays what:

Buyer’s Responsibilities

The buyer is typically responsible for the following costs:

  1. Conveyancer’s Professional Fees: The buyer pays the conveyancer’s fees for handling the transfer of ownership.
  2. Transfer Duty: This is a tax levied on the purchase price of the property and is paid by the buyer to the South African Revenue Service (SARS).
  3. Deeds Office Fees: The buyer covers the fees for registering the transfer of ownership at the Deeds Office.
  4. Bond Registration Fees: If the buyer is obtaining a home loan, they are responsible for the fees associated with registering the bond over the property.
  5. Postage and Petties: These are small administrative costs, such as postage and photocopying, incurred during the conveyancing process.

Seller’s Responsibilities

The seller is typically responsible for the following costs:

  1. Bond Cancellation Fees: If the seller has an existing bond on the property, they must pay the fees for canceling the bond once the property is transferred.
  2. Rates and Levies Clearance Certificates: The seller is responsible for ensuring that all municipal rates, taxes, and levies are up to date. This includes obtaining clearance certificates from the municipality and, if applicable, the body corporate or homeowners’ association.
  3. Conveyancer’s Fees for Bond Cancellation: The seller pays the conveyancer’s fees for handling the bond cancellation process.

Why Are Conveyancing Fees Split This Way?

The division of conveyancing fees between the buyer and seller is based on the principle that each party should bear the costs associated with their respective responsibilities in the property transaction. For example:

  • The buyer pays for the transfer of ownership because they are the ones acquiring the property.
  • The seller pays for bond cancellation and clearance certificates because these are related to their obligations as the current property owner.

This division ensures a fair and transparent allocation of costs, making the process easier for both parties to understand and manage.

Additional Conveyancing Costs to Consider

In addition to conveyancing fees, there are other costs associated with property transactions that buyers and sellers should be aware of:

  1. Transfer Duty: This is a tax paid by the buyer and is calculated on a sliding scale based on the property’s purchase price. For example:
    • Properties under R1 million: 0% transfer duty.
    • Properties between R1 million and R1.375 million: 3% of the value above R1 million.
    • Properties above R1.375 million: Higher percentages apply.
  2. Municipal Rates and Levies: These costs must be settled before the property transfer can be finalized. The seller is responsible for ensuring that these are up to date.
  3. VAT: If the property is sold by a VAT-registered seller (e.g., a developer), VAT may be applicable instead of transfer duty.

Why Are Conveyancing Fees Important?

Conveyancing fees are a crucial part of the property transfer process for several reasons:

  1. Legal Compliance: A conveyancer ensures that the property transfer complies with South African law, protecting both the buyer and seller from potential legal disputes.
  2. Smooth Transaction: The conveyancer handles all the paperwork, liaises with relevant parties, and ensures that the transfer process runs efficiently.
  3. Peace of Mind: By entrusting the process to a professional, you can focus on the excitement of your new property while knowing that the legal aspects are being handled by experts.
  4. Avoiding Delays: A skilled conveyancer can help avoid delays by ensuring that all documents are accurate and submitted on time.

Why Choose Burger Huyser Attorneys for Conveyancing?

At Burger Huyser Attorneys, we pride ourselves on providing exceptional conveyancing services in South Africa. Here’s why you should choose us:

  1. Expertise: Our team of experienced conveyancers specializes in property law and has a deep understanding of the South African property market.
  2. Personalised Service: We take the time to understand your needs and provide tailored solutions to ensure a seamless property transfer process.
  3. Transparency: We believe in clear communication and provide detailed breakdowns of our fees, so you know exactly what you’re paying for.
  4. Efficiency: We work diligently to ensure that your property transfer is completed as quickly and smoothly as possible.
  5. Client-Centered Approach: Your satisfaction is our priority. We’re here to answer your questions, address your concerns, and guide you every step of the way.

Burger Huyser Attorneys: Your Trusted Conveyancing Experts in South Africa.

Making property transactions simple, transparent, and stress-free.

At Burger Huyser Attorneys, we’re committed to making the conveyancing process as straightforward and stress-free as possible. If you’re buying or selling a property and need expert conveyancing services, contact Burger Huyser Attorneys today. Let us handle the legal complexities while you focus on the excitement of your new journey.

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