Closing the deal

Transfer costs for Home Buyers: What You Need to Know

How Much Are the Average Transfer Costs for Buyers?

It is important that buyers are aware of the obligations, both legally and financially placed on them when buying a property. Should the purchaser not be able to comply with these obligations it could result in being in breach of the sale agreement.

In this article we highlight what buyers and sellers should provide for in their cash flow to conclude the exchange of the property from the seller to the buyer and the fees prescribed by:

  • South African Revenue Services (SARS)
  • Municipalities
  • Banks
  • Estate Agents
  • Conveyancing Attorneys
  • Licensed Electricians, Electric Fence, Gas, Pest and Water Specialists

The topics to be covered are: 

  • Closing costs for Home Buyers: What You Need to Know
  • How Much Are the Average Closing Costs for Buyers?  
  • What Are the Closing Cost Fees Involved for Buyers
  • The Buyer is responsible for the following
  • The seller is responsible for the following costs

How Much Are the Average Transfer Costs for Buyers?

The Buyer is responsible for the following fees

Conveyancing Service Fees

Although the conveyancer is appointed by the seller, the purchaser is responsible for their fees. Conveyancing fees are recommended tariffs and on a sliding-scale based on the value of the house sale transaction.

These will include:

  • FICA identification and verification
  • Transfer Fees
  • Deeds Office Fees
  • Deeds Office Search
  • Rates Application Fees
  • Homeowners Clearance Certificate (as may be required)
  • Postage, petties and travel
Someone holding a South African identification document.

New Bond Registration Costs

You will negotiate this with your bank when applying for a bond. Some banks offer to waive this for their valued customers.

Transfer Duty or VAT as applicable

The Conveyancing Attorney will require this from the purchaser and will make payment to SARS based on the current tax tables and the final offer to purchase value.

NB Transfer Duty and Transfer Fees must not be confused. Transfer Duty is a legal tax payment to SARS, and Fees are the conveyancing attorneys fees to provide legal services to affect the transfer. Both are payable to the conveyancing attorneys.

If the property is under 1 Million you will be exempt from transfer duty, but conveyancing fees still apply.

Given the uncertainty of timing to conclude your property transaction, you must make cash flow provisions to fund compliance requisites to minimise delays.

The seller is responsible for the following costs:

The Seller is responsible for:

  • Electrical Compliance Certificate.
  • Gas Certificate of Conformity Compliance, Water System and Beetle Infestation Certificates and Electric Fence System Certificate of Compliance as may be required. 
  • Municipal Rates and Taxes (usually a 4 month forward projection)
    NB: Take your electrical and water meter readings on the day you occupy your property.
  • Bond Cancellation
    Although the purchaser is responsible for most of the conveyancing attorney’s fees, the seller will be required to pay the attorney for their services to cancel their existing bond. 
  • Agent’s Commission.
A series of decorative light bulbs.

Leadhome can assist you

To ease the home buying process, contact one of 

Leadhome’s professional property consultants who will guide your through the process step-by-Step. He/she will also be able to  advise you well in advance with estimated costs based on the property you intend buying.

  • Transfer Duty
  • Transfer Fees 
  • Additional Insurances
  • Municipal Rates
  • Once-off Costs
  • And more…

Putting down a deposit can assist you when negotiating a lower interest rate which, in turn, means that you will have saved on your home loan repayments in total. Also, indicate whether you have any additional income, like rent or investments, which will indicate to the bank that you are in a good position to honour your monthly repayments.

Any reduction in fees and costs should be considered because of the long-term financial benefits.


We’re not your average real estate agency, we are here for you each step of the way and we also have world class technology to give you the real insights that you need when selling.

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