What is the process?

  1. When the offer to purchase is signed by buyer and seller, it becomes a deed of sale.
  2. The buyer then applies for a bond directly from a bank or through a mortgage originator.
  3. The conveyancer then needs the bond cancellation figures from the current bond holder and applies for the rates clearance amount from the local authority.
  4. The conveyancer drafts the necessary documents, including a draft deed of transfer.
  5. Buyer and seller than sign the transfer documents and pay the costs.
  6. The conveyancer pays the local authority to get the rates clearance certificate.
  7. Documents are lodged with the Receiver of Revenue to obtain a transfer duty receipt.
  8. Documents are lodged with the Deeds Office for their approval and will then come up on preparation and be registered.
  9. The entire process can take up to 65 days, assuming all documents are available and approved.


What does it cost to transfer a property?

There are Professional Fees and Disbursement Costs (payments made on your behalf). The professional fees are dictated by the Law Society of South Africa. – they are on a sliding scale, dependant on the price of the property. The buyer usually pays the professional fees, but the terms of the contract can state otherwise.

The conveyancer collects the following funds before registration:

From the Seller

From the Buyer

  1. Amounts due to the local authority
  2. Bond cancellation costs
  1. Deeds Office registration fees.
  2. Provision for rates and taxes due.
  3. Professional fees.
  4. Transfer duty payable to the Receiver of Revenue. 

Transfer duty in South Africa is calculated as follows based on the purchase price:

Natural persons:

R0 to R500 000

No transfer duty payable.

R501 000 to R1 000 000

The first R500 000 of the purchase price is exempt.  Transfer duty is charged at 5 % of the balance of the purchase price

R1 000 001 and above

R25 000 plus 8% of the balance of the purchase price over R1 000 001

Legal Entities

(Companies, Close Corporations and Trusts):

8% of the purchase price.


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