Purchase Costs

What are the costs involved?

When purchasing a property there are several costs which need to be taken into account which are over and above the purchase price. Make use of the calculators to see a detailed breakdown of costs.

Transfer Duty

Transfer duty is a percentage of the purchase price levied by the government and is payable to the Receiver of Revenue prior to the transfer of a property.

It is calculated as follows:

Companies, Trusts and CC’s	- 8% of the purchase price
Natural persons	- In the first R500 000 of purchase price – 0%
	- R500 001 to R1 000 000 – 5% R25 000
	- R1 000 001 and above – R25 000 + 8%

Conveyancing Fees

Conveyancing fees are the fees charged by the attorney appointed by the seller to attend to the transfer of the property to the purchaser. It is calculated as a percentage of the purchase price plus VAT and is standard between all attorney firms.

Deeds Office

The deeds office charges a fee of R500 per transaction lodged with the Registrar.

Posts and Petties

A fee of R500 is charged by the attorney for extras including Title Deeds searches, correspondence with parties to the contract, liasing with attorneys linked to the transaction etc.

Bond Registration Costs

Bond registration fees are payable to the bond registration attorney for attending to the registration of a bond. It is calculated as a percentage of the bond to be registered, plus VAT.