Transfer Costs Explained — What You'll Pay When Buying Property

What Are Transfer Costs?

Transfer costs are the once-off expenses that must be paid before a property can be registered in your name at the Deeds Office. They are separate from and in addition to the purchase price itself. As a buyer, you need to have these funds available before transfer can proceed — they cannot be financed as part of your home loan bond (unless you specifically apply for a 100% bond that includes costs, which is less common).

The three main components of transfer costs are transfer duty (a tax paid to SARS), conveyancing attorney fees (paid to the transfer attorney), and Deeds Office levies (a government charge for registration). There are also smaller disbursements such as FICA fees, postage and petties, and the cost of obtaining a levy clearance certificate from the homeowners' association if the property is in an estate.

As a rough guide, budget for 2–5% of the purchase price for transfer costs. The percentage decreases as the purchase price increases, because transfer duty is the largest component and is calculated on a sliding scale. Use our transfer cost calculator to get an accurate estimate for your specific purchase price.

Transfer Duty Explained

Transfer duty is a government tax levied by SARS on the acquisition of immovable property in South Africa. It is payable by the buyer and must be paid before the Deeds Office will register the transfer. The current threshold (effective 1 April 2025) is R1.21 million — properties at or below this value are exempt from transfer duty entirely.

Above the threshold, transfer duty is calculated on a sliding scale. The rate starts at 3% on the portion above R1.21 million and escalates to a maximum of 13% on properties worth more than R13.31 million. The important thing to understand is that transfer duty is marginal — you only pay each rate on the portion of the value that falls within each bracket, not on the full purchase price.

Attorney Fees

The transfer attorney's fees are charged for the legal work involved in managing the transfer — from reviewing the offer to purchase and conducting FICA verification, to preparing the deed of transfer and lodging documents at the Deeds Office. Attorney fees are calculated according to the Law Society of South Africa's tariff guidelines and are subject to VAT at 15%.

On a property worth R2 million, the conveyancing fee component (excluding VAT and disbursements) is typically around R25 000–R30 000. This covers all the legal work from instruction to registration. If you are obtaining a bond, the bond attorney charges a separate fee for registering the mortgage bond — this is a distinct cost from the transfer attorney's fee.

Deeds Office Fees

The Deeds Office charges a registration levy for each transaction it processes. This is a fixed government charge that increases in steps depending on the purchase price. For a property in the R1–2 million range, the Deeds Office levy is typically around R1 200–R2 000. This is a relatively small component of the total transfer costs.

There may also be additional Deeds Office fees for any endorsements, conditions, or registrations required — for example, if the property is a sectional title unit, there are slightly different lodgement fees. The transfer attorney accounts for all of these in the cost estimate they provide to you.

How to Estimate Your Costs

The most reliable way to estimate your transfer costs is to use our transfer cost calculator. Input your purchase price and get an instant breakdown of transfer duty, attorney fees (based on tariff guidelines), and Deeds Office levies. Remember that the calculator provides an estimate — actual fees depend on the specific attorney, disbursements incurred, and whether any complications arise.

For bond costs (if you are taking a home loan), use the separate bond cost calculator to estimate bond registration fees. You will need to budget for both transfer costs and bond costs if you are financing the purchase.

Once you have an estimate, contact a Pretoria conveyancer for a binding written quote. Only a qualified attorney who has reviewed the actual transaction can give you a final, accurate figure.

Pretoria-Specific Considerations

Properties in Pretoria fall under the Tshwane Municipality for rates and services. Before transfer can be registered, the municipality must issue a rates clearance certificate confirming that all municipal accounts (rates, electricity, water) are paid up. The seller is responsible for obtaining this clearance and typically has to pay a few months of rates in advance to Tshwane.

Properties in estates or sectional title schemes also require a levy clearance certificate from the homeowners' association or body corporate. This confirms that all levies are paid up to the date of transfer. The transfer attorney coordinates the obtaining of these certificates and accounts for any advance payments in the settlement statement.

If you are purchasing a property in an area like Centurion, Midstream, or the Equestrian Estate areas, be aware that some developments have both a homeowners' association levy and a separate estate management levy. The transfer attorney will confirm what clearances are required for your specific property.