One of the most common shocks first-time property buyers experience in South Africa is the cost of the transaction itself. Beyond the purchase price and deposit, transfer costs can add R80,000 to R200,000+ to what you need on the day of registration. Here is every cost, explained clearly, with 2026 figures.
WORDS: NEWSROOM :: PHOTO: PEXELS
What Are Transfer Costs?
Transfer costs are the fees and taxes required to legally transfer ownership of a property from a seller to a buyer. They are paid by the buyer (not the seller), and they must be settled before or on the date of registration at the Deeds Office. They consist of four main components: transfer duty, conveyancing fees, bond registration fees, and miscellaneous disbursements.
- Transfer Duty
Transfer duty is a tax paid to SARS (South African Revenue Service) on the purchase of property. The rates are based on the purchase price and are revised periodically. Below are the 2026 transfer duty rates:
| Property Value | Rate | Amount Due |
| R0 – R1,100,000 | 0% | R0 (exempt) |
| R1,100,001 – R1,512,500 | 3% on amount above R1.1M | R0 – R12,375 |
| R1,512,501 – R2,117,500 | R12,375 + 6% on amount above R1.512M | R12,375 – R48,675 |
| R2,117,501 – R2,722,500 | R48,675 + 8% on amount above R2.117M | R48,675 – R97,075 |
| R2,722,501 – R12,100,000 | R97,075 + 11% on amount above R2.722M | R97,075 – R1,128,345 |
| R12,100,001 and above | R1,128,345 + 13% on amount above R12.1M | R1,128,345+ |
| Transfer Duty Examples — 2026 |
| • R1,000,000 property: R0 transfer duty (exempt)
• R1,500,000 property: R12,000 transfer duty • R2,500,000 property: R57,075 transfer duty • R4,000,000 property: R213,475 transfer duty |
- Conveyancing (Transfer Attorney) Fees
The conveyancer is the attorney who handles the legal transfer of ownership. Their fees are set according to the Law Society guidelines (though attorneys can charge slightly more or less). For a R2.5M property, expect to pay approximately R28,000–R35,000 in conveyancing fees.
These fees cover preparation of transfer documents, liaison with the Deeds Office, obtaining rates and taxes clearance certificates from the municipality, and managing the full transfer process.
- Bond Registration Fees
If you are taking out a home loan, the bank requires a bond to be registered over the property at the Deeds Office. This is handled by a bond registration attorney (appointed by the bank, not you). Their fees are separate from the conveyancing fees.
| Bond Amount | Approximate Bond Registration Fee |
| R800,000 | R12,000 – R15,000 |
| R1,500,000 | R18,000 – R22,000 |
| R2,000,000 | R22,000 – R27,000 |
| R2,500,000 | R25,000 – R30,000 |
| R3,500,000 | R30,000 – R38,000 |
- Other Costs
- Bond initiation fee: R6,000–R6,500 charged by the bank to initiate the home loan. Some banks waive this for new customers.
- Deeds Office levies: R500–R1,500, paid to the Deeds Office for registration.
- Pro-rata rates and taxes: you will reimburse the seller for rates already paid beyond the transfer date.
- Homeowner’s insurance: required by the bank from the date of transfer. Budget R500–R1,200/month depending on property value.
- Moving costs: R3,000–R15,000 depending on distance and volume.
Total Cost Summary — Three Property Price Points
| Cost | R1,500,000 Property | R2,500,000 Property | R4,000,000 Property |
| Transfer duty | R12,000 | R57,075 | R213,475 |
| Conveyancing fees | ~R20,000 | ~R30,000 | ~R42,000 |
| Bond registration fees | ~R18,000 | ~R27,000 | ~R36,000 |
| Bond initiation fee | R6,000 | R6,000 | R6,000 |
| Deeds Office levies | ~R800 | ~R1,000 | ~R1,200 |
| TOTAL TRANSACTION COSTS | ~R56,800 | ~R121,075 | ~R298,675 |
