What Costs to Look Out for When Buying a Property in South Africa
South African Home Buyer Guide
What Costs Should You Budget for When Buying Property in South Africa?
The purchase price is not the full cost of buying a home. Transfer duty, conveyancing, bond registration, bank charges, insurance, levies, moving expenses and ongoing ownership costs can all affect how much cash you need before and after transfer.
A buyer who understands these costs before signing an offer is in a much stronger position than one who discovers them after the transaction is already underway.
Transfer Duty Does Not Start at R1.1 Million Anymore
For the 2026 tax year, SARS confirms that the first R1,210,000 of property value is taxed at 0% for transactions subject to transfer duty. Above that, transfer duty is calculated on a sliding scale. These rates took effect on 1 April 2025 and remain the published 2026 rates.
Think About Costs in Four Different Buckets
This makes budgeting much easier than treating every amount as one mysterious “transfer cost.”
Taxes & Government Fees
Transfer duty where applicable and Deeds Office registration charges.
Legal / Conveyancing
Transfer attorney fees, disbursements and, if financed, separate bond-registration legal costs.
Finance Costs
Deposit if required, bank initiation charges, bond-registration costs and insurance linked to the home loan.
Move-In & Ownership
Levies, municipal charges, security, utilities, moving, maintenance and the ordinary costs of owning the property.
Transfer Duty Is a Tax — Not the Attorney's Transfer Fee
This is one of the most common buyer misunderstandings. Transfer duty is the tax administered by SARS. Transfer costs normally refer to legal fees and related disbursements involved in transferring ownership.
SARS applies transfer duty to property acquisitions that are not subject to VAT, subject to exemptions. A transaction is generally subject to either VAT or transfer duty, not both; SARS states that VAT takes preference where the property sale is a taxable VAT supply.
The conveyancer handles the transfer-duty process with SARS as part of the transfer workflow.
What Does the Transfer Duty Scale Mean in Rand?
These examples show transfer duty only. They do not include attorney, bond, Deeds Office or other costs.
Transfer Attorney Costs and Bond Attorney Costs Are Separate
The transfer attorney handles the legal transfer of ownership from seller to buyer. The buyer ordinarily pays the purchaser-side transfer fees and disbursements associated with that process, while the seller appoints the transferring attorney in a conventional sale unless the agreement provides otherwise.
If the buyer uses a home loan, a bond attorney is separately instructed to register the bank's mortgage bond. That creates another set of legal and Deeds Office costs linked to the amount of the bond.
Because professional fees, VAT and disbursements vary with the transaction and amount, buyers should obtain a written cost estimate from the conveyancer and bond attorney rather than rely on a generic percentage.
You avoid bond-registration legal costs because no mortgage bond is being registered, but transfer costs and transfer duty (if applicable) still need to be considered.
There Is No Universal “10%–20% Deposit Rule”
The deposit required depends on the sale agreement and the finance you qualify for. Some buyers may obtain a 100% home loan, while others may need to contribute a deposit because of the bank's credit decision, the purchase price, affordability or the structure of the transaction.
A deposit can still be strategically useful because it reduces the amount that needs to be borrowed and can improve the buyer's finance position. But buyers should not assume that every bank automatically requires 10% or 20%.
If the offer to purchase requires a deposit, pay it only into the account specified by the proper conveyancing or stakeholder process — not into an arbitrary private account because someone is pressuring you to “secure the deal.”
Before Signing, Know:
Budget for More Than the Monthly Bond Repayment
Your bank's quotation and loan agreement should set out the fees and requirements that apply to your particular home loan.
The lender may charge an initiation fee when establishing the credit agreement. Check the exact amount and whether the bank permits it to be financed as part of the loan.
The bond attorney charges for registering the mortgage bond, together with applicable VAT and disbursements.
A lender may require suitable insurance over the mortgaged property. Sectional-title buildings are generally insured by the body corporate, so confirm what your bank requires for the specific property.
Insurance requirements vary. Read the bank's quotation and policy requirements carefully, including your right to use qualifying alternative cover where applicable.
Do Not Forget Deeds Office Fees
The Deeds Office charges prescribed registration fees, and the schedule changes from time to time. The Chief Registrar of Deeds publishes the official fee schedule; the conveyancer's cost statement normally includes the applicable Deeds Office amount rather than requiring the buyer to calculate it independently.
Rates, Levies and HOA Charges Matter to Affordability — Even If They Are Not All “Transfer Costs”
The old version of this article suggested that buyers normally pay three to six months of municipal rates upfront. That is too broad. Rates-clearance requirements are part of the transfer process, and how amounts are paid or adjusted between seller and buyer depends on the transaction, municipal process and conveyancer's statement.
What every buyer should do is establish the ongoing monthly ownership cost before signing. Ask for the current rates and taxes, sectional-title levies or homeowners-association charges, and whether there are known special levies or once-off amounts that could affect the buyer.
The offer to purchase should also deal clearly with occupation and any occupational rental if the buyer moves in before registration or the seller remains after registration.
The Smaller Costs Can Still Arrive All at Once
A professional inspection is optional in many ordinary purchases but may help a buyer understand maintenance or defect risks before proceeding, where the contract allows for it.
Movers, boxes, storage, fuel, furniture dismantling and time off work can make relocation more expensive than expected.
Budget for municipal or service-provider deposits, electricity arrangements, fibre installation or reconnection and other move-in setup costs.
Alarm activation, armed response, access tags, locks, remotes, cameras or electric-fence maintenance may need immediate attention.
A house can be perfectly habitable and still need paint, plumbing, garden work, appliances or repairs shortly after occupation.
A larger home can create immediate spending pressure if the buyer tries to furnish every room at once. Separate “need now” from “nice later.”
Build a Cash Requirement — Not Just a Monthly Bond Budget
A buyer can be comfortable with the monthly home-loan repayment and still be short of cash when transfer costs, deposits and moving expenses become payable.
Ask your bank or bond originator for the finance quotation and ask the conveyancer for an estimated transfer-cost statement. Then add your own move-in and ownership costs.
Your Pre-Offer Cost Checklist
Be Careful With “Budget an Extra 8%–11%” Rules
The old article used a blanket 8%–11% rule of thumb. That can badly overstate or understate the cash needed because transfer duty is zero below R1.21 million, bond costs disappear on a cash purchase, attorney fees vary, and high-value properties face a very different transfer-duty scale.
Better approach: calculate the actual transfer duty from the current SARS table, obtain legal-cost estimates for the specific purchase and bond amount, then add the real move-in and ongoing ownership costs for that property.
Useful Reading Before You Buy
Property Buyer Cost FAQs
At what price does transfer duty start in 2026?
The current SARS table applies 0% transfer duty to property values up to R1,210,000. The first transfer-duty bracket begins above R1,210,000, subject to the transaction actually being one to which transfer duty applies.
Are transfer duty and transfer attorney fees the same thing?
No. Transfer duty is a tax administered by SARS. Transfer attorney costs are the legal fees and disbursements associated with transferring the property into the buyer's name.
Do I need a 10% or 20% deposit?
Not necessarily. The required deposit depends on the offer to purchase and the buyer's finance approval. Some buyers may qualify for 100% finance while others may need or choose to contribute a deposit.
Do I pay transfer duty if VAT applies to the property sale?
SARS states that a property sale is subject to either VAT or transfer duty, not both, and VAT takes preference where the transaction is a taxable VAT supply. The transaction should be checked by the conveyancer because the VAT treatment depends on the seller and the nature of the supply.
Who pays the bond registration costs?
The buyer who is obtaining the home loan normally carries the costs associated with registering that mortgage bond. These are separate from the property-transfer legal costs.
How much extra cash should I budget beyond the purchase price?
There is no single percentage that is accurate for every buyer. Calculate the actual transfer duty, obtain specific transfer and bond legal-cost estimates, check the deposit and bank requirements, then add insurance, moving, utilities and an emergency maintenance reserve.
Know What the Property Will Cost Before You Commit to the Property.
A+ Properties can help you understand the buying process, property information and the next steps while your bank, bond specialist and conveyancer provide the transaction-specific finance and legal cost figures.
Official/current references: SARS — 2026 Transfer Duty Rates · SARS — VAT vs Transfer Duty · Chief Registrar of Deeds — 2026/27 Fee Schedule · Legal Practice Council — Fees / Tariffs.