Conveyancing and Property Transfer Fees in South Africa

When buying property in South Africa, conveyancing fees are a key part of the transaction costs. These fees are paid to the conveyancing attorney responsible for handling the legal transfer of ownership from the seller to the buyer. The process involves a range of legal and administrative tasks to ensure the property is lawfully and correctly registered in the buyer’s name.

Conveyancing fees are usually calculated on a sliding scale based on the property's purchase price. While the Law Society of South Africa provides recommended guidelines, the final fee can vary from one firm to another, as these charges are negotiable. VAT at 15% is also added to the final amount.

In most cases, conveyancing fees cover services such as verifying property ownership, drafting legal documents, communicating with banks and the Deeds Office, managing payments, and ensuring all compliance requirements are met. Choosing a reliable attorney ensures your transaction proceeds smoothly and that any legal risks are managed early in the process.

Transfer Duty

Transfer duty is a government tax collected by the South African Revenue Service (SARS) when ownership of a property changes hands. It applies to residential property purchases above a certain value and is one of the more significant costs buyers need to budget for.

As of March 2024, no transfer duty is payable on properties valued at R1,100,000 or less. For properties exceeding this value, the duty is charged on a progressive scale:

• R1,100,001 to R1,512,500: 3% of the value above R1,100,000
• R1,512,501 to R2,117,500: R12,375 plus 6% of the value above R1,512,500
• R2,117,501 to R2,722,500: R48,675 plus 8% of the value above R2,117,500
• R2,722,501 to R12,100,000: R97,075 plus 11% of the value above R2,722,500
• Above R12,100,000: R1,128,600 plus 13% of the value exceeding R12,100,000

Transfer duty must be paid before the transfer can be registered at the Deeds Office. Your conveyancer will usually calculate this amount and submit the payment to SARS on your behalf. Being aware of this cost early on helps avoid unexpected delays during the registration process.

Additional Costs

Aside from conveyancing fees and transfer duty, there are several other charges involved in transferring property in South Africa. These may seem minor in comparison, but together they can add a few thousand rand to your total costs — so they’re worth factoring into your budget upfront.

• Deeds Office Fees - These are charged for registering the transfer of the property with the Deeds Registry. These fees are based on the value of the property and are set by a fixed tariff issued by the government. The higher the purchase price, the higher the Deeds Office fee. Although they’re not negotiable, your conveyancer will include them in your overall cost estimate.
• Postage and Petties - These cover smaller administrative expenses incurred during the transfer process. This includes courier fees, photocopying, phone calls, and postage — essentially, the day-to-day overheads related to managing your file. While the total amount is usually modest, it’s a standard line item in most conveyancing invoices.
• Rates and Levy Clearance Certificates - Before a property can be transferred, the seller must provide proof that all municipal rates and levies (such as water, electricity, and refuse) are paid up to date. These certificates are obtained from the local municipality and body corporate (in the case of sectional title properties), and the fees for issuing them are usually passed on to the buyer if agreed in the sale agreement.

Because these costs can vary depending on the property type and location, it’s a good idea to ask your conveyancer for a detailed breakdown early in the process. This avoids surprises and helps you plan for the full financial outlay required.

Calculating Total Costs

To avoid being caught off guard by the range of expenses involved in a property purchase, it’s essential to calculate your total transfer costs before signing an offer to purchase. While your bond originator or estate agent may give you a basic idea, the most accurate estimates will come from your conveyancer.

Thankfully, there are several online tools available to help buyers estimate these costs. These tools allow you to enter the purchase price and generate a detailed breakdown of the estimated fees — including transfer duty, conveyancing fees, Deeds Office charges, and other related costs.

Keep in mind that these calculators provide estimates based on average rates. Actual fees may differ slightly depending on the law firm you use, any discounts negotiated, or whether the transaction involves a bond. Some buyers may also need to budget for additional items like bond registration costs or compliance certificates (e.g., electrical or beetle clearance certificates), depending on the property and region.

The more accurate your planning, the smoother the process will be. Ensuring that you understand all expected costs ahead of time can prevent shortfalls and delays when it’s time to proceed with payment.

VDM Attorneys – Conveyancing Attorneys in Sandton

Buying property is a major financial decision, and understanding the full scope of associated costs is vital to avoiding setbacks during the transfer process. From legal fees and government taxes to administrative charges and compliance certificates, each expense plays a role in ensuring a legally sound and seamless property transaction.

At VDM Attorneys, our conveyancing team ensures that buyers and sellers are informed at every step. By offering clear guidance, accurate cost breakdowns, and prompt communication, we help clients manage their transactions with confidence.