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In this guide
By Onah Attorneys Inc • Updated July 2026 • Legal information, not a substitute for advice on your specific matter.
The purchase price is only the beginning. Between transfer duty, conveyancing fees, bond registration, clearances and levies, a South African property transaction carries five layers of cost — split between buyer and seller by law, convention and the fine print of the offer to purchase. Here is the complete map, so nothing at settlement surprises you.
Transfer duty: the tax
SARS charges transfer duty on purchases above R1,210,000 (2026 threshold) on a sliding scale from 3% to 13% — nothing below the threshold, which exempts a large share of first-time purchases. New developments bought from VAT-registered developers carry VAT inside the price instead of duty. The buyer pays, before registration, via the conveyancer.
Conveyancing fees: the transfer attorney
The transferring attorney’s fee follows a recommended tariff scaling with price — roughly R30,000–R45,000 plus VAT on a R2 million home, including deeds office levies, rates clearance certificates and sundries. The buyer pays, though the SELLER chooses the conveyancer by convention (negotiable in the offer). Deceased estate and divorce transfers price differently.
Bond costs: the second attorney
Financing buyers also pay a bond registration attorney (appointed by the bank): another tariff-based fee plus the bank’s initiation fee (capped around R6,000). Bond registration and transfer run simultaneously and lodge together. Sellers with existing bonds pay bond CANCELLATION costs — and must give their bank the required notice (usually 90 days) or pay penalty interest, the most commonly forgotten seller cost.
Clearances: rates and levies
The seller pays municipal rates clearance figures (often 3–6 months’ rates in advance, refundable pro-rata) and, in sectional title or estates, the body corporate/HOA levy clearance including any special levies raised before transfer. Disputes over municipal figures are a leading cause of transfer delay — start clearance early.
Occupational rent and other frictions
If occupation and registration dates differ, occupational rent (set in the offer — market-related, monthly) flows between the parties. Add compliance certificates the seller must fund: electrical (COC), gas, electric fence — and in coastal provinces beetle and plumbing certificates by convention. Each is negotiable; each must be in the offer to be enforceable.
A worked example
R2,000,000 freehold purchase with a R1,800,000 bond: buyer pays ±R51,000 transfer duty + ±R42,000 transfer fees + ±R35,000 bond costs ≈ R128,000 in costs (6.4%). Seller pays agent commission (5–7% plus VAT as agreed), ±R5,000 bond cancellation, rates advance and certificates. Budgeting buyers: plan 8–10% above purchase price all-in.
Frequently asked questions
Can transfer costs be added to my bond?
Some banks offer costs-inclusive bonds (100%+ LTV) for qualifying buyers — otherwise costs are cash. First-time buyer programmes periodically subsidise.
Why does the seller choose the attorney but the buyer pay?
Convention with historical roots — and fully negotiable in the offer to purchase. Buyers with leverage increasingly nominate.
Are there costs on inherited property?
Estate transfers are exempt from transfer duty; conveyancing fees and deeds office charges still apply, paid by the estate or heir per the will and account.
How long do I budget for the process?
8–12 weeks on a clean transaction from acceptance to registration — bond approval, clearances and SARS being the usual pace-setters.
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