Conveyancing and Property Transfer Fees in South Africa

When purchasing property in South Africa, it's essential to account for various fees beyond the purchase price. These include conveyancing fees, transfer duty, and other related costs.

Conveyancing Fees

Conveyancing fees are paid to the attorney responsible for transferring property ownership from the seller to the buyer. These fees are typically calculated based on the property's purchase price and are subject to VAT. The Law Society of South Africa provides guidelines for these fees, but they are negotiable and may vary between firms. 

Transfer Duty

Transfer duty is a tax levied by the South African Revenue Service (SARS) on property transfers. As of March 2024, properties valued up to R1,100,000 are exempt from transfer duty. For properties above this threshold, the transfer duty is calculated on a sliding scale:

R1,100,001 to R1,512,500: 3% of the value above R1,100,000
R1,512,501 to R2,117,500: R12,375 plus 6% of the value above R1,512,500
R2,117,501 to R2,722,500: R48,675 plus 8% of the value above R2,117,500
R2,722,501 to R12,100,000: R97,075 plus 11% of the value above R2,722,500
Above R12,100,000: R1,128,600 plus 13% of the value exceeding R12,100,000

Additional Costs

Other expenses to consider include:

Deeds Office Fees: Charges for registering the property transfer, varying based on the property's value.
Postage and Petties: Miscellaneous costs incurred by the conveyancer, such as postage and administrative expenses.
Rates and Levy Clearance Certificates: Fees to obtain certificates confirming that municipal rates and levies are up to date.
These costs can vary, so it's advisable to consult with your conveyancer for precise amounts.

Calculating Total Costs

To estimate the total costs associated with a property purchase, you can use online calculators provided by various institutions. For instance, ooba offers a transfer cost calculator that can help you determine the approximate fees based on your property's value. 

Conclusion

Understanding the various fees involved in property transactions in South Africa is crucial for effective financial planning. Engaging with a qualified conveyancer will ensure that all legal requirements are met and that you are well-informed about the costs associated with your property purchase.