Conveyancing and Property Transfers

 

 

Yes, there are usually sundry fees to cover administrative costs like postage, obtaining a rates clearance certificate from the municipality, and FICA verification.
 

Yes, there is a separate Deeds Office fee for the registration of the mortgage bond.

While it's possible to apply for a slightly higher loan amount to cover some of the upfront bond costs, this will increase your overall loan amount and monthly repayments.

Yes, making extra payments can help you pay off your bond faster and reduce the total interest you pay.

While it's still common to pay a deposit, some banks may offer 100% loans, covering the full purchase price. However, a deposit can reduce the loan amount and your monthly repayments.

It is always recommended to consult with a reputable conveyancing attorney or a bond originator for personalized advice and accurate cost estimations for your specific property transaction. Contact one of our conveyancing attorneys for good sound advice. 

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Transfer, Bond and Repayment Cost Calculator

Know the Costs Before You Buy - Use Our Property Calculator

When buying property in South Africa, it's essential to understand the various costs involved beyond the purchase price. These costs can be broadly categorized into Transfer Costs, Bond Costs, and the ongoing Repayment Costs. At VDM Attorneys, we aim to provide clarity on these aspects, and to assist you in this process, we offer a comprehensive calculator on this page to help you estimate your Transfer Costs, Bond Costs, and Bond Repayment Costs.

1. Transfer Costs - These are the expenses associated with legally transferring ownership of the property from the seller to you, the buyer. A conveyancing attorney, appointed by the seller, handles this process. The main components of transfer costs include:

  • Transfer Duty - A government tax payable to the South African Revenue Service (SARS) on the transfer of the property's title deed. This is a significant cost calculated on a sliding scale based on the property's value. Currently, properties below a certain threshold (e.g., R1,210,000 as of April 2025) may be exempt from transfer duty.
  • Conveyancer's Fees (Transfer Fees) - These are the professional fees charged by the transferring attorney, as per the tariff guidelines set by the Legal Practice Council and based on the property's purchase price.
  • Deeds Office Levy - A mandated fee payable to the Deeds Office for registering the new ownership of the property.
  • Sundry Fees - These cover necessary administrative expenses such as postage, FICA compliance checks, and electronic documentation.

Calculate your Transfer Costs: Utilize our convenient Transfer Cost Calculator on this page for an accurate estimate.

2. Bond Costs - These are the costs related to registering a new home loan (bond) against the property. A bond registration attorney, appointed by the bank, manages this process. Key components of bond costs include:

  • Bond Registration Fees - These are the legal fees paid to the bond attorney for registering the mortgage bond at the Deeds Office. These fees are also calculated based on a tariff scale related to the loan amount.
  • Bank Initiation Fee - A once-off fee charged by the bank for processing your home loan application and setting up your bond account. This fee is regulated by the National Credit Act.
  • Deeds Office Levy - Similar to transfer costs, a fee payable to the Deeds Office for registering the bond.
  • Sundry Fees - These cover administrative expenses associated with the bond registration process.

Estimate your Bond Costs: Our Bond Cost Calculator, available on this page, will help you determine these expenses.

Important Note: If you are purchasing the property with cash and do not require a home loan, you will only be responsible for the Transfer Costs.

3. Repayment Cost - This refers to your ongoing monthly payments towards your home loan. These payments primarily consist of:

  • Principal Repayment - The portion of your payment that reduces the outstanding loan amount.
  • Interest - The cost of borrowing the funds, calculated as a percentage of the remaining loan balance.
  • The amount of your monthly repayment is influenced by:
    • Loan Amount -The total sum you have borrowed.
    • Interest Rate - The rate at which the bank charges interest, which can be either variable (fluctuating with the prime lending rate) or fixed.
    • Loan Term - The duration over which you will repay the loan, typically spanning 20 or 30 years.


 

 

Ready to Calculate Your Property Costs?

Understanding these costs is crucial for effective financial planning when buying a property in South Africa. While transfer and bond costs are typically paid upfront, some buyers might opt to include certain costs within their bond (e.g., applying for a 105% loan), although this will impact their monthly repayments.

For accurate estimations tailored to your specific property purchase, we encourage you to use the calculators provided on this page. Should you have any further questions or require legal assistance with your property transaction, please do not hesitate to contact VDM Attorneys.