Changing ownership of a house in South Africa typically costs the buyer about 8% to 12% of the purchase price in total, on top of the price itself. The main components are transfer duty payable to SARS (0% on the first R1 210 000 of value from 1 April 2025), transfer attorney fees, bond registration costs if a mortgage is involved, and municipal clearance and Deeds Office charges.
Ownership of a house changes only when a conveyancer registers the new title deed at the Deeds Office, so attorney fees are unavoidable. This guide breaks down each cost, shows the current transfer duty brackets, explains when duty is not payable at all, and lists the mistakes that inflate the bill.
What Changing Ownership Actually Involves
A sale agreement alone does not transfer a house. A conveyancer, an attorney with Deeds Office practising rights, must collect the purchase price, obtain a rates clearance certificate and transfer duty receipt, and register the deed of transfer. Only once the new title deed is registered does the buyer own the property.
The whole process commonly takes about two to three months from signing to registration, depending on bond approval, municipal turnaround times, and the efficiency of the various attorneys involved.
The Cost Components at a Glance
| Cost | Paid by | What drives it |
|---|---|---|
| Transfer duty | Buyer | Purchase price, per the SARS brackets |
| Transfer attorney fee | Buyer | Purchase price, per the recommended conveyancing tariff plus VAT |
| Bond registration costs | Buyer | Bond amount, if the buyer needs a mortgage |
| Rates clearance deposit | Seller (credited by rates already paid) | About four months’ municipal rates and utilities, refundable less arrears |
| Bond cancellation costs | Seller | Attorney fee plus Deeds Office charge on the seller’s existing bond |
| Deeds Office and search fees | Buyer | Nominal fixed charges |
| Compliance certificates | Seller | Electrical (and gas or beetle where required) |
| Occupational interest | Either party | Only where occupation precedes registration |
Current Transfer Duty Brackets
Transfer duty applies to the purchase price and is payable by natural persons on the sliding scale below, which took effect on 1 April 2025. Companies, close corporations, and trusts pay duty at a flat higher rate, one reason trusts are rarely used purely to hold a residential property.
| Property value | Rate |
|---|---|
| R1 to R1 210 000 | 0% |
| R1 210 001 to R1 663 800 | 3% of the value above R1 210 000 |
| R1 663 801 to R2 317 500 | R13 614 plus 6% above R1 663 800 |
| Above R2 317 500 | Progressive 8%, 11%, and 13% bands, rising to 13% on the highest values |
On a R1 500 000 house, that works out to duty of about R8 700. On a R3 000 000 house, expect duty in the region of R100 000. Check the exact figure against the current SARS transfer duty rates before you budget, because the brackets are adjusted periodically.
Typical Conveyancing Fee Ranges
Transfer fees follow the conveyancing profession’s recommended tariff, scaled to the price, plus VAT. As an honest guide rather than a quotation, transfers commonly fall in these ranges: about R12 000 to R16 000 on a R500 000 property, about R23 000 to R30 000 on R1 000 000, and about R40 000 to R55 000 on R2 000 000. Firms may quote above or below the guideline, so compare.
Registering the buyer’s bond is a separate conveyancing instruction with its own fee, again scaled to the bond amount, plus VAT and the bank’s initiation fee. A practical planning figure is that bond registration adds roughly 3% of the bond amount. Cancelling the seller’s existing bond, paid by the seller, usually costs several thousand rand.
When No Transfer Duty Is Payable
- VAT sales: where the seller is a VAT-registered vendor selling in the course of business, for example a developer, VAT is included in the price and no transfer duty is charged.
- Divorce transfers: a transfer of the primary residence to a divorced spouse under a divorce order is exempt from transfer duty.
- Inheritance: property transferred from a deceased estate to an heir pays no transfer duty, though the estate may face estate duty on its side.
- Between spouses: transfers between spouses in a marriage or civil union are exempt.
Even where duty is exempt, the conveyancing fees, clearance costs, and Deeds Office charges still apply, because the registration process is identical.
Common Mistakes to Avoid
- Budgeting only the deposit. Buyers who forget transfer duty and fees are routinely short by tens of thousands of rand at the worst possible moment.
- Assuming the bond covers the costs. Banks finance the property, not the transfer costs, which must be funded from the buyer’s own pocket.
- Ignoring municipal arrears. Clearance will not issue while rates or utilities are in arrears, and a delayed clearance delays the whole registration chain.
- Assuming the “0% bracket” means no costs. Duty-free properties below R1 210 000 still carry attorney fees, clearance, and registration charges.
- Picking the cheapest attorney blindly. The seller nominates the transfer attorney by convention, but slow conveyancing costs occupational interest and bridging finance.
- Forgetting occupational interest. If the buyer moves in before registration, occupational interest is payable, usually daily, until the deed registers.
Frequently Asked Questions
How much does it cost to change ownership of a house in South Africa?
Buyers should budget roughly 8% to 12% of the purchase price in total. Transfer duty is 0% on the first R1 210 000 of value from 1 April 2025 and then rises on a sliding scale, transfer attorney fees commonly run from about R23 000 on a R1 million property to R55 000 at R2 million, and bond registration adds roughly 3% of the bond amount.
At what price do you start paying transfer duty in South Africa?
From 1 April 2025, transfer duty is 0% on property values up to R1 210 000 for natural persons. Above that, 3% applies to the value between R1 210 001 and R1 663 800, with 6%, 8%, 11%, and 13% bands above. Companies and trusts do not enjoy the threshold and pay duty at a flat higher rate.
Who pays the transfer costs, the buyer or the seller?
The buyer pays transfer duty, the transfer attorney’s fee, bond registration costs, and Deeds Office charges. The seller pays for obtaining the rates clearance certificate, cancelling the seller’s existing bond, and compliance certificates such as the electrical certificate. The contract can shift these allocations, so read the offer carefully.
How long does a change of property ownership take in South Africa?
Registration of transfer commonly takes about two to three months from signing the sale agreement, assuming bond approval proceeds smoothly. Municipal rates clearance, transfer duty receipt issuance, and coordination between the transfer and bond attorneys are the usual bottlenecks, and delays in any one of them hold up the entire chain.
Disclaimer. This article is general information, not legal or tax advice for a specific transaction. Confirm the current transfer duty brackets with SARS and obtain a written conveyancing quotation before budgeting, or consult an admitted property attorney.