Transfer Costs Explained: What You Actually Pay When Buying Property in SA

Most property buyers focus on the purchase price and monthly bond repayment. What many fail to budget for adequately are the transfer costs — the once-off costs payable before or at the time of registration. For a R2.5 million property, these can easily total R150,000–R200,000.

Why Transfer Costs Matter

Transfer costs are payable in cash — they cannot be bonded. Banks will not include transfer costs in the home loan amount, which means you need cash available on top of your deposit. Failing to budget for these costs is one of the most common reasons property transactions fall through after an offer to purchase has been signed.

Transfer Duty (SARS)

Transfer duty is a government tax collected by SARS. It is payable on all properties bought from a non-VAT vendor (i.e., most private sellers). The 2025/2026 rates start at 0% for properties up to R1,100,000, then rise progressively to 13% for properties above R12,100,000. At R2,500,000, the transfer duty is approximately R81,675.

Important exception: if the seller is a VAT vendor (typically a property developer), VAT at 15% is charged instead of transfer duty. This is usually included in the purchase price but should be confirmed with your attorney.

Conveyancing Attorney Fees

A conveyancing attorney handles the legal transfer of the property. Their fees are guided by the Law Society of South Africa tariff. On a R2.5 million property, expect attorney fees of approximately R20,000–R25,000 plus VAT at 15%. This brings the total attorney cost to approximately R23,000–R28,750.

Bond Registration Costs

If you are taking out a bond, a separate bond registration attorney is appointed by the bank. Their fees are also Law Society-guided. On a R2 million bond, expect bond registration costs of approximately R15,000–R19,000 plus VAT, plus a deeds office registration levy of approximately R1,360.

Total Cost Examples

For a R2.5 million property with a R2 million bond: transfer duty R81,675 + conveyancing fees R26,000 (inc. VAT) + bond registration R20,000 (inc. VAT) + deeds levies R1,800 + postage R850 = approximately R130,000 total. The buyer would need R130,000 in cash for costs plus R500,000 deposit — R630,000 cash total.