Costs paid by the purchaser
| Cost | What it is |
|---|---|
| Transfer duty | A tax payable to SARS on the purchase price. No duty is payable on property up to R1 210 000. Not payable where the seller is a VAT vendor and VAT is charged instead. Calculate it here. |
| Conveyancing fee | The transferring conveyancer's professional fee for the transfer, which is generally based on the value of the property. VAT is added. |
| Deeds Office fees | A registration fee charged by the Deeds Office, based on the value of the property. |
| Disbursements | Costs such as FICA verification, deeds searches, postage and document copies. |
| Bond registration costs | If you take a home loan: the bond attorney's fee, Deeds Office fees for the bond and the bank's initiation fee. |
Costs paid by the seller
| Cost | What it is |
|---|---|
| Agent's commission | Payable to the estate agent on registration, as agreed in the mandate or offer. |
| Bond cancellation costs | The cancellation attorney's fee, and any early termination penalty if the bank was not given the required notice. |
| Rates and levies | Municipal charges required for the rates clearance certificate, usually including an amount in advance for the period the certificate is valid, and levies or HOA fees for the levy clearance. |
| Compliance certificates | Electrical certificate of compliance and, where applicable, gas, electric fence, beetle and (in Cape Town) water installation certificates. |
| Capital gains tax | May be payable on the profit when filing your tax return, subject to exclusions such as the primary residence exclusion. |
Adjustments on registration
Rates and levies are usually apportioned on the date of registration. If the seller has paid in advance for a period after registration, the purchaser refunds the seller for that period, and the conveyancer includes this in the final statement of account.
Getting an accurate figure
Every transfer is different. We provide a written quotation before you instruct us, so that you know the full cost before you commit.
Frequently asked questions
Who pays transfer duty, the buyer or the seller?
The purchaser pays transfer duty, unless the parties agree otherwise.
Are conveyancing fees fixed by law?
No. Conveyancing fees are not prescribed by law. Many conveyancers use an industry guideline as a reference. We confirm our fee in writing before you instruct us.
This guide is general information and not legal advice. Contact Julian Bartlett for advice on your circumstances.