Transfer Costs in South Africa: What You'll Actually Pay to Buy a Home

Transfer costs South Africa buyers pay come as a genuine surprise to a lot of first-time buyers, since they sit on top of your deposit and bond, and they must be paid in cash before registration. On an average home, these costs can add anywhere from R20 000 to well over R100 000, depending on the price and whether transfer duty applies.

Here's the part that catches people off guard. Transfer costs are not one single fee, they're four separate cost categories bundled together: transfer duty, conveyancing fees, bond registration costs, and a handful of smaller disbursements.

What Transfer Duty Actually Is

Transfer duty is a tax paid to SARS, calculated on a sliding scale based on the purchase price. For 2026, properties priced at or under R1 210 000 pay zero transfer duty. Above that threshold, the percentage increases in bands as the price climbs.

Here's the part that works hugely in your favour if you're buying from a developer. When you buy a new development directly from a registered developer, like the homes we build at Kwantu Homes, you pay no transfer duty at all, since the developer pays VAT instead. This alone can save a buyer tens of thousands of rands compared to a resale purchase of the same value.

Conveyancing Fees Explained

Conveyancing fees, sometimes called attorney fees home loan buyers see listed on their statement, are what the transferring attorney charges to handle the legal transfer through the Deeds Office. These follow a sliding scale set by the Legal Practice Council, where the percentage decreases as the property value increases.

As a rough guide using current 2026 conveyancing fee guidelines:

• A R600 000 property carries conveyancing fees of roughly R12 000 to R16 000, including VAT

• A R1 000 000 property carries conveyancing fees of roughly R18 000 to R22 000, including VAT

Bond Registration Costs, A Separate Bill Entirely

If you're financing your purchase with a bond, there's a second, entirely separate attorney fee for registering the bond itself over the property. This is handled by a bond attorney, sometimes at the same firm and sometimes a different one.

Bond registration costs South Africa buyers should budget for typically include:

1. The bond attorney's fee, calculated on a similar sliding scale to conveyancing fees

2. A bank initiation fee, usually R6 000 to R7 500

3. Deeds Office levies for the bond registration, roughly R500 to R2 000

4. A property valuation fee the bank charges, typically R1 500 to R7 500

A Real Example, Off-Plan vs Resale

Here's how this plays out for a R700 000 home financed with a full bond:

Buying off-plan from a developer: No transfer duty. Conveyancing fees around R13 000, bond registration costs around R11 000, plus a bank initiation fee of roughly R6 500. Total cash needed for transfer costs: approximately R30 000 to R35 000.

Buying the same value resale, over the R1 210 000 threshold on a pricier home: Add transfer duty on top of all the above, which on a resale home priced above the threshold can add tens of thousands more.

This is exactly why buying a new development, like our stock at Kwantu Homes, can work out significantly cheaper on transfer costs than an equivalent resale home.

How to Prepare for These Costs

Since transfer costs can't be added to your bond, you need this cash separately, on top of any deposit. A few ways to plan ahead:

• Ask your conveyancing attorney for a formal, written cost estimate before you sign anything

• Use a transfer duty calculator to estimate your specific costs before making an offer

• Budget for these costs at the same time you're gathering your required documents, so nothing catches you off guard later in the transfer process

If your income also qualifies for the FLISP subsidy, remember that subsidy money reduces your bond, not your transfer costs, so it's worth keeping these two budgets separate in your mind.

Want to see what you could afford, transfer costs and all? Try our free two-minute pre-approval quiz to get a real starting point.