Bond and Transfer Cost Calculator

How the Bond and Transfer Cost Calculator Works

Buying property in South Africa involves two parallel legal processes, each with its own attorney and costs. The transfer attorney (appointed by the seller) handles the transfer of ownership from seller to buyer and lodges the title deed at the Deeds Office. The bond attorney (appointed by the bank) handles the registration of the new mortgage bond over the property.

All attorney fees in South Africa are calculated using the Law Society tariff scale - a sliding scale based on the property purchase price or bond amount. Both sets of attorney fees attract VAT at 15%. In addition to attorney fees, the Deeds Office charges a registration levy on both the transfer and the bond registration.

Transfer duty is a government tax payable by the buyer on property purchases above R1 100 000. It is calculated on a progressive scale (similar to income tax brackets) and must be paid before transfer can be registered. Properties sold by VAT vendors (typically developers) are subject to VAT on the sale price instead of transfer duty - not both.

All of these costs are payable in cash before or on the date of transfer - they cannot be added to the bond. This is a common surprise for first-time buyers who assume the bond covers all costs. The calculator shows the total cash required upfront so you can budget accurately.

How to Use This Calculator

1. 1

   Enter the purchase price

   Use the agreed purchase price from the offer to purchase. This determines the transfer duty and the transfer attorney fee.

2. 2

   Enter the bond amount

   This is the loan amount approved by your bank - the purchase price minus your deposit. If you are paying cash (no bond), leave this at zero and only the transfer costs will apply.

3. 3

   Review the itemised cost breakdown

   The calculator shows each cost line separately: transfer duty, transfer attorney fee, bond attorney fee, deeds office levies, and VAT on attorney fees. Add these to your deposit to get the total cash you need before transfer can be registered.

4. 4

   Budget for additional costs

   The calculator covers the main statutory and attorney costs, but there may be additional costs: home inspection fees (R1 500–R5 000), electrical compliance certificate (R500–R2 000), plumbing certificate, and pre-transfer rates and taxes clearance paid by the seller but sometimes negotiated. Ask your attorney for a full cost estimate at time of mandate.

Frequently Asked Questions

What is transfer duty and when does it apply in South Africa?

Transfer duty is a SARS tax on the purchase of property above R1 100 000. It is calculated on a progressive scale: 0% up to R1 100 000; 3% on R1 100 001–R1 512 500; 6% on R1 512 501–R2 117 500; 8% on R2 117 501–R2 722 500; 11% on R2 722 501–R12 100 000; and 13% above R12 100 000. The buyer must pay transfer duty before the Deeds Office will register the transfer. Transfer duty does not apply if the seller is a VAT vendor (e.g., a property developer) - VAT replaces it.

Who pays the transfer attorney and bond attorney fees?

The buyer pays both. The transfer attorney is appointed by the seller but paid for by the buyer. The bond attorney is appointed by the bank and also paid by the buyer. Both sets of fees are calculated on the Law Society tariff scale and include VAT. Together, attorney fees and deeds office levies on a R2 million property with a R1.6 million bond typically total R55 000–R75 000.

How long does property transfer take in South Africa?

The transfer process typically takes 6–10 weeks from the date of a signed offer to purchase, assuming no complications. Delays occur when: transfer duty is slow to be paid; FICA documents are outstanding; there are outstanding levies or rates that must be cleared; or the Deeds Office (which lodges documents in batches) has a backlog. Transfers in Cape Town's Deeds Office are often faster than Johannesburg's.

What is a Deeds Office levy and who pays it?

The Deeds Office charges a registration levy for recording the transfer of ownership and the bond registration in the national deeds registry. These levies are set by government on a sliding scale based on property and bond values. Both are paid by the buyer - the transfer levy through the transfer attorney, and the bond levy through the bond attorney. They are relatively modest (typically R1 000–R5 000 each) compared to attorney fees.

Can transfer costs be added to my home loan?

No. Transfer duty, attorney fees, and deeds office levies must be paid in cash before or on the date of registration - they cannot be financed through the bond. This is a firm requirement of South African property law. Some banks offer a separate 'moving loan' or 'bond costs loan' to help buyers cover these upfront costs, but these are separate credit agreements with their own interest rates and repayment terms.

What happens if transfer duty is not paid on time?

SARS must issue a transfer duty receipt before the Deeds Office will register the transfer. If duty is not paid, the transfer is blocked and the registration cannot proceed. SARS charges interest on late payment of transfer duty at the prescribed rate. Once paid, SARS issues the receipt within a few days. Your transfer attorney manages the payment and timing as part of the transfer process.