COST TO BE PAID BY THE PURCHASER: TRANSFER FEES
Category Property Advice
When buying a property, the Purchaser must pay several costs in addition to the purchase price. These include transfer costs, transfer duty, and bond registration costs (if a home loan is used).
1. Transfer Costs
- These are the legal fees the conveyancer charges to handle the property transfer.
- The fees are set according to a national tariff published by the Legal Practice Council, and they increase as the property price increases.
- The latest fee schedule can be found at www.lssa.org.za under "Conveyancing Fees."
- These fees are adjusted annually to account for inflation.
2. Transfer Duty (a tax paid to SARS)
- Transfer duty is a tax that must be paid to SARS when you buy a property.
- The conveyancer will collect the duty from the Purchaser and pay it to SARS. A receipt must be submitted to the Deeds Office before registration can take place.
- The value of the property determines how much transfer duty you must pay.
3. Attorney Software & Electronic Fees
- Conveyancers use specialist systems to manage transactions.
- They may charge additional software or electronic fees, such as:
- R500-R700 for transfer
- ± R1 500 for bond registration
4. Additional Certificates
If you are buying a Sectional Title Unit (like a flat or townhouse), you will also need to pay for:
- Levy Clearance Certificate: ± R1 500
- Insurance Certificate (if applicable): ± R1 500
- Homeowners' Association Certificate (if buying in a complex or estate): ± R1 500
If you are also buying an Exclusive Use Area (EUA), like a garage, garden, carport, or parking bay, there is an additional cost:
- ± R4 080 for the first EUA
- This is because it is transferred with a separate legal process (notarial deed), which has extra legal fees.
5. Bond Registration Costs (if you need a home loan)
- If you are registering a bond (home loan), you will pay:
- Bond registration legal fees, based on the bond amount.
- This is calculated using the same fee schedule as the transfer costs - usually about the same as transfer fees.
Bank Charges:
- Banks charge extra fees such as:
- Initiation Fee: usually R6 037.50 for individuals
- Higher amounts may apply for companies or trusts (juristic entities)
- Some banks may ask you to pay this before registration, others may add it to the loan amount.
6. Advance Payments (Rates & Levies)
- You will also need to pay:
- Around 2 months' worth of levies (for sectional title units)
- Around 2 months' worth of rates and taxes (in some municipalities)
After the property is registered, the conveyancer will calculate the pro rata amounts and refund any overpayments to you.
Author: OYSTER
