Bond and transfer costs explained — the full cost of buying a home

The purchase price isn’t the only cost of buying a home. Knowing the extras upfront helps you budget properly and avoid surprises at transfer.

The four main costs

• Transfer duty: a tax paid to SARS on the property. Homes priced at or below R1,210,000 are currently zero-rated — you pay no transfer duty. Above that, it scales progressively. (SARS revises these figures most years, so confirm the current rate before you buy.)
• Transfer (conveyancing) attorney fees: paid to the attorney who transfers the property into your name.
• Bond registration costs: a separate set of attorney and Deeds Office fees for registering your home loan over the property.
• Deeds Office and disbursements: registration fees plus sundries such as FICA, postage and searches.

What it adds up to

As a guide, total buying costs usually land between roughly 3% and 10% of the purchase price. Bonded purchases sit toward the higher end, because bond registration adds a second set of attorney and Deeds Office fees on top of the transfer. Cash buyers below the transfer-duty threshold pay the least.

Who pays what, and when

The buyer pays transfer duty and most of these costs, and they’re generally due before the property can be registered in your name at the Deeds Office. They are paid in addition to your deposit, so factor them into your savings plan.

Plan ahead

Because exact figures depend on the price, whether you’re bonding, and the current SARS rates, it’s worth getting an accurate estimate early. A transfer cost calculator gives a ballpark, and your conveyancer confirms the final figures.