Understanding Bond and Transfer Costs When Buying Property in South Africa
Breakdown of bond registration, transfer duty, conveyancing fees, and other costs when buying a house or property in South Africa.
Why buying costs matter
When you buy a property in South Africa, the purchase price is only part of the picture. You also pay transfer duty (if applicable), transfer costs, bond registration costs (if you have a bond), and other fees. First-time buyers should budget for these upfront—they can add tens of thousands of rands on top of your deposit. This guide breaks down the main costs.
Transfer duty
Transfer duty is a tax paid to SARS when property is transferred. It applies when the purchase price is above a certain threshold (check current rates). The amount is calculated on a sliding scale. First-time buyers and buyers of lower-priced properties may pay little or no transfer duty. Your conveyancer or attorney will calculate the exact amount and pay it as part of the transfer process.
Transfer costs and conveyancing fees
The transfer of property is handled by a conveyancer or attorney. You pay transfer fees (their professional fees) and other disbursements (e.g. Deeds Office fees, FICA, postage). These vary by firm and property value. Get a quote before you sign an offer to purchase so you know the total cost. Transfer costs are usually for the buyer’s account unless otherwise agreed.
Bond registration costs
If you take out a home loan (bond), the bank registers a bond over the property. You pay bond registration costs: the bank’s initiation fee and the attorney’s fees for registering the bond. These are in addition to transfer costs. Some banks offer cost caps or promotions—compare offers. Bond registration happens at the same time as transfer at the Deeds Office.
Other costs to consider
Budget for bond origination or initiation fees, valuation (if required by the bank), and insurance (building and possibly life cover). If you buy in an estate or sectional title scheme, factor in levies from the date of transfer. Your conveyancer and bond attorney will give you a full cost breakdown before registration.