What Costs Do Sellers Pay When Selling a Property in South Africa?
South African Property Seller Guide
What Costs Do Sellers Pay When Selling a Property in South Africa?
The selling price is not the same thing as the amount that eventually reaches your bank account. Commission, bond cancellation, municipal and levy clearances, compliance work, tax and other transaction costs can all reduce the seller's final proceeds.
The useful number is therefore not only “What can I sell for?” It is also “What am I likely to receive after the costs of selling?”
Follow the Money From Sale Price to Seller Proceeds
The Main Costs Fall Into Six Groups
Not every seller will pay every cost. The property, finance, municipality, scheme, installations, mandate and tax position determine which items apply.
Agency Commission
The commission agreed in the seller's mandate, plus VAT where applicable.
Bond Cancellation
Cancellation attorney costs and possible lender charges if the property is still bonded.
Municipal / Levy Clearance
Amounts required to obtain rates and, where relevant, levy clearance before transfer.
Compliance
Electrical and other certificates or remedial work required by law, installations, locality or the sale agreement.
Tax
Capital gains tax may arise depending on the seller and property; non-resident sellers also face special withholding rules.
Property-Specific Costs
Repairs, special levies, HOA requirements, moving costs and other amounts needed to complete the transaction.
Commission Is Agreed — It Is Not One Fixed National Percentage
The current live article says commission is “usually 5%–7.5% plus VAT.” That kind of range may be seen in the market, but it should not be presented as a legal or universal rate.
The seller and estate agency agree the commission in the mandate. The amount can depend on the agency, mandate type, services, property and commercial agreement. VAT is added where applicable.
In a conventional agency sale, the commission is commonly settled from sale proceeds through the conveyancing process once the agency becomes entitled to payment under the mandate and sale agreement.
Do Not Compare Commission Alone
Your Home Loan Must Be Cancelled at the Deeds Office
If a mortgage bond is registered over the property, the bank appoints a bond-cancellation attorney. The cancellation attorney obtains settlement figures, prepares the bond-cancellation documents and coordinates with the transferring and bond-registration attorneys.
Major lenders such as Absa and Standard Bank currently state that they require 90 days' cancellation notice. FNB likewise warns of an early-termination fee where a home loan is cancelled without the required notice. The seller should therefore ask their own bank about the exact notice period and possible finance charge as soon as a sale is being considered.
Giving notice to cancel the bond does not itself mean the sale must proceed. It tells the lender that cancellation may be coming and can help avoid an unnecessary early-termination charge, subject to that bank's rules.
The Seller May Need Cash Before the Seller Receives the Sale Proceeds
Rates & Services Clearance
The conveyancer requests clearance figures from the municipality. The Deeds Office transfer guide says sellers should keep rates, water and electricity information up to date and describes the seller funding rates and taxes in advance to obtain clearance.
The actual amount comes from the municipality and conveyancer's figures. Do not assume a generic “2–6 months” rule will match every municipality or transaction.
Levy Clearance
For sectional-title properties and many estates or HOAs, the transfer process also requires levy or association clearance. Outstanding ordinary levies, special levies or other amounts may need to be settled or secured before clearance is issued.
The allocation of special levies can depend on the scheme rules, resolutions and sale agreement, so ask the conveyancer and managing agent for the actual figures early.
The Certificate May Be Cheap. The Repairs Needed to Get It May Not Be.
Compliance costs depend on the property, installations, locality and what the sale agreement requires.
The Department of Employment and Labour reiterated in October 2025 that a valid electrical Certificate of Compliance must be obtained and provided before sale or transfer and that non-compliance must be rectified.
Where an electric-fence system exists, a separate electric-fence system certificate may be relevant. The conveyancer will confirm the documents required for the particular transfer.
Where gas equipment is installed, the transaction may require the applicable gas compliance documentation. Confirm the installation and sale-agreement requirements rather than assuming every property needs one.
Plumbing, beetle or other certificates can depend on the municipality, region and sale agreement. They are not all nationwide requirements for every sale.
Capital Gains Tax Is Not Simply “Tax on the Selling Price”
Selling property is a disposal for Capital Gains Tax purposes. Whether CGT is actually payable depends on the seller, the nature and use of the property, the capital gain after allowable base-cost items and the exclusions available.
The current SARS 2026/27 table lists a R3,000,000 primary-residence capital gain/loss exclusion and an R50,000 annual exclusion for individuals and special trusts. The primary-residence exclusion is subject to qualifying rules and may need apportionment where the residence was rented out, used for trade, was not ordinarily occupied throughout the relevant period or includes non-qualifying land.Keep Records That May Matter to Base Cost
Non-Resident Seller? There Is an Extra Tax Withholding Rule to Check
SARS states that where a non-resident disposes of South African immovable property for more than R2 million, the purchaser is generally required to withhold part of the purchase price and pay it to SARS unless a directive changes the amount.
The published withholding percentages are 7.5% for a non-resident natural person, 10% for a non-resident company and 15% for a non-resident trust. This withholding is an advance toward the seller's tax liability rather than automatically the final tax amount.
Some Costs Are Unique to the Property or the Deal
Do Not Mix Up Seller Costs With Buyer Transfer Costs
SELLER TYPICALLY BUDGETS FOR
BUYER TYPICALLY BUDGETS FOR
Work Backwards From the Amount You Need to Receive
If you are selling to fund another purchase, settle debt or release investment capital, do not assume the headline selling price equals the cash you will have available.
Ask your agent and conveyancer for the known transaction costs, get bond settlement figures if applicable, and speak to a tax professional where CGT may be material. That produces a much better decision number.
Seller Net-Proceeds Worksheet
Useful Reading Before You Sell
Seller Cost FAQs
Does the seller pay the transfer attorney's fee?
In a conventional sale, the buyer generally pays the purchaser-side transfer fees while the seller typically appoints the transferring conveyancer. The seller may still pay separate seller-side items such as bond-cancellation attorney costs, clearances and compliance costs.
How much estate agent commission does a seller pay?
There is no single national fixed commission percentage. The seller and agency agree the commission in the mandate, with VAT added where applicable. Compare the service and likely net outcome rather than comparing the percentage alone.
Do I have to give my bank 90 days' notice before selling?
Major lenders including Absa and Standard Bank currently state that they require 90 days' notice for home-loan cancellation, while FNB warns of an early-termination fee without the required notice. Confirm the exact requirements with your own lender because your loan terms and bank process govern the notice.
Does every property seller pay Capital Gains Tax?
No. CGT depends on whether there is a taxable capital gain after base cost and available exclusions. Primary-residence, individual, company, trust, investment-property and non-resident situations can differ significantly.
What is the current primary-residence CGT exclusion?
SARS' current 2026/27 tax information lists a R3 million primary-residence capital gain or loss exclusion, subject to qualifying rules. The separate annual exclusion for individuals and special trusts is R50,000.
Do sellers always need beetle, gas, electric-fence and plumbing certificates?
No. Electrical compliance is a core nationwide requirement, while other certificates depend on the installations, location, applicable regulations and what the sale agreement requires. The conveyancer should confirm the exact certificate list for the property.
Know Your Likely Selling Price — Then Understand What You May Actually Receive.
A+ Properties can help you understand the market position of your property and the normal seller-cost categories so that you can plan the sale with fewer surprises.
Current / official references: Chief Registrar of Deeds — Property Transfer Process · Department of Employment and Labour — Electrical CoC · SARS — 2026/27 CGT Rates & Exclusions · SARS — Non-Resident Property Sellers.