Property Transfer and Conveyancing Fees
Property transfer and conveyancing fees refer to the legal and administrative costs associated with transferring ownership of immovable property from a seller to a buyer.
Only an admitted conveyancer may attend to this process in South Africa, and the transfer cannot be registered at the Deeds Office without the required documents, certificates, and statutory payments being completed. These fees form part of the buyer’s expenses and must be budgeted for alongside the purchase price.
What are Property Transfer and Conveyancing Fees?
Conveyancing exists to ensure that the transfer documents meet statutory requirements, that the seller has valid title to transfer, and that the property is registered accurately in the Deeds Registry. Each step has legal consequences: errors or omissions can delay registration, affect ownership rights, or expose parties to financial loss. Conveyancing fees therefore reflect the level of legal oversight, verification, and formal compliance involved in a property transaction.
How Conveyancing Fees Are Determined
Conveyancing fees are generally calculated using a sliding scale based on the property’s purchase price. While the Legal Practice Council issues recommended guidelines, the fees are not fixed by law and may differ between firms. VAT at the prevailing rate is added to the final amount.
The scale-based approach reflects the amount of work required to prepare, lodge, and finalise transfer documents for properties of varying values. Higher-value transactions often involve more extensive verification and greater financial risk if errors occur. The fee is not a simple administrative charge—it covers a regulated legal process with strict statutory requirements.
Because conveyancers also incur disbursements during the transaction, the fee quotation usually includes both the professional fee and the anticipated statutory charges. Buyers benefit from requesting a detailed breakdown early in the process to understand the full financial requirement before signing an offer to purchase.
What Conveyancing Fees Typically Cover
Although the details vary depending on the transaction, conveyancing fees generally include:
- Examining the Seller’s Title Deed and Verifying Ownership
- Preparing Transfer Documents Required by the Deeds Office
- Obtaining Figures and Clearances for Municipal Rates or Levies
- Coordinating with Banks Where Bonds Are Cancelled or Registered
- Confirming Compliance with Statutory Requirements, Including SARS Submissions
- Overseeing Payment Flows to Ensure the Transfer Proceeds Correctly
These steps are essential to ensure that ownership passes lawfully and that the buyer receives a clean, registerable title. The conveyancer must confirm that all regulatory obligations have been met before submitting the transfer for registration, as the Deeds Office will not allow the transaction to proceed if documentation or compliance is incomplete.
Transfer Duty and SARS Requirements
Transfer duty is a tax payable to the South African Revenue Service (SARS) when a property is acquired, unless the transaction qualifies for an exemption. The duty is calculated on a progressive scale based on the purchase price, and no transfer may be registered until SARS has received payment and issued the transfer duty receipt.
Properties valued at R1,100,000 or less attract no transfer duty under the current thresholds. Beyond this level, duty increases according to the applicable brackets published by SARS. Because transfer duty is often one of the largest costs associated with a property purchase, buyers should confirm the applicable amount before committing to the transaction.
The conveyancer is responsible for preparing the documentation needed for SARS, calculating the duty, and arranging payment. Errors in filing or late submission can delay the transaction or result in penalties. Where a property is sold by a VAT-registered seller and VAT applies, transfer duty may be excluded, but this must be verified during the drafting of the sale agreement.
Deeds Office Fees
The Deeds Office charges a tariff-based fee for registering property transfers. These fees are determined by regulation and increase with the value of the property. Because they are statutory charges, they are not negotiable and apply uniformly across the country.
The fee covers the administrative and registration processes undertaken by the Deeds Registry, including examination of the lodged documents and updating the official property records. The conveyancer includes this amount in the cost estimate provided to the buyer, as the transfer cannot proceed without payment of the prescribed fee.
Other Disbursements and Compliance Costs
In addition to the professional fee and statutory charges, property transfers involve several smaller disbursements that are necessary to complete the process.
Rates and Levy Clearance Certificates
Before transfer, the seller must provide confirmation that municipal rates and, where applicable, body corporate levies are fully paid. The municipality or managing agent charges a fee for issuing these certificates, and the amount may vary depending on location and administrative requirements.
Administrative Disbursements
Conveyancers incur routine expenses such as courier charges, document preparation, and related administrative items during the transfer. While these amounts are usually modest, they form part of the overall cost estimate and must be disclosed to the buyer.
These disbursements are essential to the registration process and arise from statutory or practical requirements rather than professional discretion.
Calculating Total Transfer Costs
A clear understanding of transfer costs is essential before signing an offer to purchase. While online calculators can provide a general estimate, the most accurate figures come from the conveyancer handling the transaction. The full calculation includes the professional fee, transfer duty, Deeds Office fees, clearance charges, and administrative disbursements. Where the transaction involves a mortgage bond, additional costs for bond registration and related certificates must also be factored in.
Buyers should confirm all expected costs at the outset to avoid shortfalls or delays during the registration process. Property transfers operate on strict timelines, and outstanding payments can postpone lodgement at the Deeds Office or disrupt coordination between the conveyancer, the bank, and other parties involved in finalising the transaction.
Additional Expenses That May Apply
Certain transactions require further certificates or inspections before transfer can take place. Depending on the property and agreements between the parties, this may include electrical, water installation, gas, or beetle certificates. These items are typically addressed in the sale agreement, and responsibility for payment varies. Where compliance work is required before issuing the certificate, additional costs may arise.
Where a bond is registered simultaneously with the transfer, the buyer must also budget for the bond registration fee, the bank’s administrative charges, and the cost of preparing the bond documents. These expenses are separate from the transfer fee and are paid to the bond attorney.
VDM Attorneys – Conveyancing and Property Transfer Attorneys
VDM Attorneys assists clients with all aspects of property transfers, including the preparation of transfer documents, calculation of statutory charges, and coordination of lodgement at the Deeds Office. We review sale agreements, manage compliance requirements, and guide buyers and sellers through each step of the transfer process so that ownership is transferred correctly and within the required timeframes.