If you're buying or selling property, chances are you're already juggling enough — finances, paperwork, and emotions included. But one of the most common questions that causes confusion (and often, unexpected expense) is: who pays for what during the property transfer process?
Between municipal rates, attorney fees, compliance certificates, and transfer duty, it’s easy to feel lost in a sea of line items. And if you’re not clear on who’s responsible for each cost, you could end up making assumptions that stall — or even sink — the deal.
Seller’s Costs During a Property Transfer
If you’re selling your property, there are several non-negotiable legal and practical costs that you’ll need to budget for. Some are once-off, others are conditional, but most are essential to finalising the sale.
1. Estate Agent Commission
If you’ve appointed an estate agent to handle the sale, their commission is typically deducted from the sale proceeds on registration. Rates range from 5–7.5% (plus VAT), and the obligation to pay rests solely with the seller. It’s also worth confirming whether the commission is based on the gross or net selling price, as this can affect your final payout.
Read: How Estate Agent Commission is Negotiated and Paid in SA Property Sales
2. Certificates of Compliance (CoCs)
A property cannot legally be transferred without the necessary compliance certificates, which confirm that various installations on the property are safe and meet legal standards. The seller must cover the cost of obtaining these.
Required certificates include:
- Electrical Certificate of Compliance (CoC)
- Plumbing Certificate (in some municipalities)
- Gas Certificate (if gas appliances are installed)
- Electric Fence Certificate (if applicable)
- Beetle Certificate (still required in some coastal areas)
Each certificate must be issued by a qualified professional and may require repairs before approval — adding to your costs.
3. Bond Cancellation Fees
If you have a mortgage bond registered over the property, even if the balance is paid off, you’ll need to pay for bond cancellation. This involves:
- Legal fees to the bond cancellation attorneys
- Penalties if you didn’t give your bank 90 days’ written notice before selling
Missed the notice period? The bank will likely charge a penalty equal to one month’s bond repayment per month of short notice.
4. Rates Clearance & Additional Payments
Municipal rates and taxes must be paid 60–90 days in advance before transfer can proceed. You’ll also need to settle:
- Outstanding levies or Homeowners’ Association fees
- Any arrears on the municipal account
- SARS tax directive (if required for non-resident sellers)
If funds are tight while you wait for transfer, you may also need bridging finance to cover upfront costs.
Buyer’s Costs During a Property Transfer
For buyers, the bulk of costs come upfront and must be paid before transfer can take place. These costs are often the biggest surprise for first-time buyers — but understanding them can help you plan your deposit, bond, and fees realistically.
1. Transfer Duty and Fees
Transfer duty is a tax payable to SARS when you purchase property above R1 million (subject to the latest tax tables). The buyer must also pay transfer fees to the conveyancing attorneys handling the transaction — separate from the bond costs.
These fees are not optional and must be paid before the attorneys can lodge the transfer.
2. Bond Registration Fees
If you’re applying for a home loan, your bank will appoint attorneys to register the bond. These attorneys are separate from the transferring conveyancer — and you, as the buyer, pay their fees.
Costs include:
- Attorney bond registration fees
- Bank’s bond initiation fee
- Deeds Office charges
- Postage, petties, and FICA compliance costs
3. Occupational Rent
If you move into the property before transfer is finalised, you may be required to pay occupational rent to the seller. This rent is usually calculated on a daily basis and agreed upon in the Offer to Purchase.
Note: If the seller remains in the property after registration, they may pay occupational rent to the buyer.
4. VAT vs. Transfer Duty
If you're buying from a VAT-registered seller, you won’t pay transfer duty — instead, VAT is included in the purchase price. This usually applies to developers or property speculators selling as part of a business.
Depending on the contract, the purchase price may be VAT inclusive or exclusive — and the buyer must know which applies to avoid surprises.
Why a Conveyancer Matters
Whether you’re the buyer or seller, the transfer process can be legally and financially complex. A conveyancer acts as your legal advisor and transaction manager — ensuring everything is done correctly, timeously, and in compliance with the Deeds Office and applicable laws.
As the buyer, conveyancers will:
- Ensure your transfer documents are complete
- Register your property at the Deeds Office
- Liaise with SARS and other stakeholders
- Handle all legal communication and lodge the transfer
As the seller, conveyancers will:
- Manage the cancellation of your bond
- Collect compliance certificates and rates clearances
- Guide you through required declarations and documentation
- Ensure your proceeds are safely and legally disbursed
While estate agents often focus on closing the deal, it’s the conveyancer who ensures it’s done by the book.
Before you sign an Offer to Purchase, make sure you’ve consulted with a property lawyer or conveyancer who can walk you through the real costs, timelines, and legal implications involved.
VDM Attorneys – Conveyancing & Property Transfers
Every property transaction comes with legal and financial responsibilities — and a mistake at transfer stage can cost time, money, and peace of mind. At VDM Attorneys, we guide buyers and sellers through the full transfer process, from contract to registration, ensuring compliance, transparency, and protection at every step.
If you're preparing to buy or sell property, make sure your transfer is in the hands of a conveyancer who puts your interests first.
Contact us for more information.