If you’re buying or selling a property in South Africa, one of the first questions that comes up is: “Who’s actually responsible for all these transfer and conveyancing costs?”
Property transactions are exciting, but they also come with a lot of paperwork and fees that aren’t always obvious at the start. Let’s break it down in plain English so you know exactly what to expect.
First things first – what are conveyancing and transfer fees?
Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. It’s handled by a conveyancing attorney (or conveyancer), who makes sure everything is done according to the law, the Deeds Office requirements, and your sale agreement.
Transfer fees cover the attorney’s professional charges for doing this work, along with a few other costs like:
- Transfer duty (a tax paid to SARS if the property is above a certain value)
- Deeds Office fees (for registering the property in the new owner’s name)
- Various administrative costs like postage, courier fees, FICA checks, and document preparation.
💡 Tip: Want to get a personalised estimate of these costs? You can use our Property Transfer & Bond Cost Calculator to see how much you might need to budget based on your property value.
Who pays for what?
Here’s the simple answer: the buyer usually pays the bulk of the conveyancing and transfer costs in South Africa.
Buyer’s responsibilities
- Transfer duty – This is a tax payable to SARS, and it’s based on the purchase price of the property. If the property is below the threshold set by SARS, no transfer duty is payable, but the buyer still pays the attorney’s fees.
- Conveyancer’s professional fees – The buyer chooses (or at least has the right to choose) the transferring attorney, and pays for their services.
- Deeds Office fees – These are set by a government tariff and are based on the property value.
- Other costs – Things like bank initiation fees, bond registration fees (if taking a home loan), and any bank attorney charges.
Seller’s responsibilities
- Rates clearance certificates – The seller must ensure all municipal rates, utilities, and levies are up to date before transfer. This means paying any outstanding amounts plus a few months in advance so the municipality can issue the clearance certificate.
- Compliance certificates – Depending on the province and the property type, the seller is responsible for providing certificates such as electrical compliance, water installation (in Cape Town), beetle clearance (common in coastal areas), or gas compliance.
- Settling the existing bond – If the seller still owes money on the property, they’ll need to pay off their existing home loan in full on transfer.
- Estate agent commission – If an agent was involved, their commission is usually deducted from the sale proceeds.
Why does the buyer pay the conveyancer?
It might feel a little one-sided, but the buyer pays because the attorney’s job is to transfer the property into the buyer’s name – essentially, they’re working to protect the buyer’s interests. That said, the attorney is still legally obliged to act fairly and follow the law for both parties.
Can these costs be negotiated?
In most cases, the split of costs follows tradition, but there’s nothing stopping a buyer and seller from negotiating. For example, in a buyer’s market, a seller might offer to pay some or all transfer costs to sweeten the deal. Just make sure any agreement is written clearly into the sale contract.
A quick example
Let’s say you’re buying a property for R1.5 million:
- Transfer duty: Around R17,000 (calculated using SARS’s table)
- Conveyancing attorney fees: ± R20,000 (according to the recommended tariff)
- Deeds Office fees: ± R1,500
- Bank bond registration: ± R20,000 (if you’re taking a loan)
The seller, meanwhile, might have to pay R8,000 for rates clearance, R2,500 for electrical and water certificates, and settle their existing home loan.
You can plug your own numbers into our Property Transfer & Bond Cost Calculator to get a more accurate picture of your costs.
Final thoughts
Understanding who pays for what in a property sale can save you a lot of confusion – and possibly some awkward conversations later. As a rule of thumb, the buyer covers the legal and registration costs to take ownership, while the seller settles all outstanding obligations tied to the property before handing it over.
Whether you’re buying your dream home or selling to move on to your next chapter, knowing the financial responsibilities upfront makes the process smoother and less stressful.
