Transfer costs in South Africa explained: what buyers actually pay

Buyers are often shocked when their property lawyer sends the first quote. Understanding the costs upfront prevents nasty surprises and helps you budget properly.

1. Transfer duty (paid to SARS)

Transfer duty is the biggest single line for most buyers. It scales with purchase price. Current SA thresholds (2026):

• Up to R1,100,000 — 0% (no transfer duty)
• R1,100,001 – R1,512,500 — 3% of the value above R1.1m
• R1,512,501 – R2,117,500 — R12,375 + 6% above R1,512,500
• R2,117,501 – R2,722,500 — R48,675 + 8% above R2,117,500
• R2,722,501 – R12,100,000 — R97,075 + 11% above R2,722,500
• Above R12,100,000 — R1,128,600 + 13% above R12.1m

Important: If you're buying from a VAT-registered developer (new-build), there's no transfer duty — VAT applies instead (usually included in price). Check which applies.

2. Bond registration costs

Only applicable if you're financing the purchase. Two components:

• Bond attorney fees: scaled to loan value. Around R17,000 on a R1m bond, R30,000 on R2m, R45,000 on R3m.
• Bond registration at Deeds Office: R1,500–R2,500 depending on bond value.

3. Transfer attorney (conveyancer) fees

This is the lawyer who actually transfers the property into your name at the Deeds Office. Scales with purchase price. Approximate:

• R500,000 property — R12,000–R15,000
• R1,000,000 — R18,000–R22,000
• R2,000,000 — R25,000–R30,000
• R3,000,000 — R32,000–R38,000

Seller chooses the transfer attorney in SA, but the buyer pays these fees. Buyer chooses the bond attorney.

4. Deeds Office transfer fees

A fixed admin fee paid to the Deeds Office:

• R250,000 property — about R700
• R1,000,000 — about R1,500
• R2,000,000 — about R1,700
• R5,000,000+ — about R2,500

5. Rates and levies clearance

The seller needs a rates clearance certificate. Municipality charges the seller for this, but you as buyer pay the pro-rata levies and rates from transfer date forward — often 3 months paid in advance. Typical R5,000–R25,000 depending on property.

6. Bond initiation / application fees

Your bank charges an initiation fee (usually R6,000–R7,000) plus a monthly "service fee" of R69 that adds up over 20 years.

Real-world examples

Example A: R850,000 starter home, 100% bond

• Transfer duty: R0 (under R1.1m threshold)
• Transfer attorney: ~R15,000
• Deeds Office: ~R1,200
• Bond attorney: ~R14,000
• Bond initiation fee: ~R6,000
• Rates clearance + initial levies: ~R4,000
• Approx total extra costs: R40,200 (~5% on top of purchase price)

Example B: R1.8m family home, 90% bond

• Transfer duty: ~R29,500
• Transfer attorney: ~R25,000
• Deeds Office: ~R1,600
• Bond attorney: ~R20,000 (on R1.62m bond)
• Bond initiation fee: ~R6,000
• Rates clearance + initial levies: ~R10,000
• Approx total: R92,100 (~5.1%)

Budgeting rule of thumb

Budget 8–12% of the purchase price for your deposit plus all transfer costs. That's a starting point. If you're putting down a 10% deposit, that's already 5–7% of the price in cash, so add the transfer costs on top.

What to ask your attorney upfront

1. Please send me a detailed written cost estimate before I commit.
2. Is transfer duty or VAT applicable?
3. When will you need each payment (and how much at each stage)?
4. Typical timeline from offer acceptance to registration at Deeds?
5. What happens if my bond isn't approved in the conditional period?

Reputable conveyancers will answer all of these in writing. If yours hesitates, find another.