Many homebuyers focus on securing a deposit and managing monthly bond repayments, but often overlook the additional costs involved in transferring ownership. Even with a 100% home loan, buyers may still need a significant amount of cash to cover transfer duties, legal fees, bond registration costs, and other expenses.
Understanding the Main Costs
Transfer Duty
Transfer duty is a tax paid to SARS when purchasing property above a certain threshold. As of 1 April 2026:
- No transfer duty is payable on properties valued at R1.21 million or less.
- Properties above this threshold are taxed on a sliding scale.
- Higher-value properties attract progressively higher transfer duty rates.
Importantly, buyers who fall below the transfer duty threshold will still be responsible for other transfer-related costs.
Transfer Costs
Transfer costs generally include:
- Conveyancing attorney fees
- VAT on legal fees
- Deeds Office fees
- Electronic processing charges
- Postage and administrative disbursements
Although the seller appoints the transfer attorney, the buyer is usually responsible for these costs.
Bond Registration Costs
If a buyer is financing the purchase through a home loan, a separate attorney is typically appointed to register the mortgage bond.
Costs may include:
- Bond attorney fees
- VAT
- Deeds Office charges
- Administrative and registration expenses
- Bank initiation fees (where applicable)
Buyers should always request a detailed written quotation to understand exactly what is included.
Budgeting for Hidden Expenses
Beyond transfer and bond costs, buyers should also plan for:
- Deposits
- Occupational rent
- Moving expenses
- Utility deposits
- Homeowners' insurance
- Life cover requirements (where applicable)
- Rates and levy contributions
- Immediate maintenance or repairs
For sectional title properties and estates, buyers should also enquire about:
- Monthly levies
- Special levies
- Stabilisation levies
- Once-off joining fees
The 8% to 10% Rule
A useful guideline is to budget approximately 8% to 10% of the property's purchase price for transaction and moving-related costs, excluding any deposit.
While the actual amount will vary depending on:
- The property's value
- Transfer duty bracket
- Bond amount
- Attorney fees
- Bank incentives or discounts
Having a contingency budget can help avoid financial strain during the transfer process.
Buying from a Developer
The cost structure differs when purchasing directly from a VAT-registered developer.
In many cases:
- VAT is included in the purchase price.
- Transfer duty is not payable.
- Some transfer-related legal costs may be covered by the developer.
However, buyers may still face:
- Bond registration fees
- Deposits
- Bank charges
- Development-specific fees
Always review the sale agreement carefully to understand which costs remain payable.
Plan Before You Sign
One of the smartest steps a buyer can take is to request a full cost estimate from a conveyancer before signing an offer to purchase. Understanding all the upfront and ongoing costs allows buyers to budget accurately, avoid surprises, and enter the transaction with confidence.
Homeownership should begin with financial stability, not unexpected expenses after registration.
