Signed, Sealed, Sold! The Conveyancing & Notary Column 

The Conveyancing & Notary Column

What will it cost to purchase a property and who pays what?

The purchase price is not the only cost of transfer to a Purchaser. Transfer costs include transfer fees (conveyancer’s fees), SARS transfer duty and other disbursements, such as payments made to third parties, including the municipality, Deeds Office and lodgement agents.

As a quick estimate, budget approximately 6% of the purchase price for all these costs.

Depending on whether you are a first-time homebuyer, and the value of the purchase price, some banks may allow the transfer costs to be included in the bond approval.

Breakdown of Purchaser Costs

• The transfer (conveyancer’s) fee is calculated according to a guideline tariff issued by the Legal Practice Council annually. Transfer duty, payable to SARS, is also a formula issued by SARS annually – and usually accounts for almost two thirds ofany quoted fees if the purchase price is above R1 210 000 (2026).
• Disbursements are also items necessary in the transaction and paid to third parties, e.g. the Deeds Office fee and lodgement fee, or an item labelled “Postages and Petties” which usually includes any incidentals, attendances, day-to-day, collecting and delivering of items.
• The purchaser also has bond costs. Bond costs are also tariff-driven and attract their own disbursements. More often than not, another attorney’s firm is instructed to do the bond, so two attorneys will be involved, with two sets of costs, payable by the Purchaser – transfer and bond costs. The bond attorney is usually instructed by the purchaser’s new bank.

Understanding Seller Costs

• Another fee worth mentioning is the bond cancellation fee, which is payable by the seller. The attorney handling the cancellation is instructed by the seller’s existing bank, therefore a third attorney may potentially be involved in the transaction.
• A final mention on costs for the Seller. Make provision for compliance certificates (e.g. electrical, fence, plumbing, beetle, gas) as well as rates, levies and homeowners association clearances – up to three months in advance (ensuring arrears are paid), a FICA fee will be charged by the transfer attorneys, and of course agent’s commission if an agent is involved.

Facebook