Bond Costs (Also known as Registration costs)
Your total bond registration costs on a bond of R540,000.00 is R6986.00. Note: this is excluding your transfer costs.
1. Conveyancing Fees
You have to pay the conveyances (attorneys) who register the property in your name, as well as the conveyances appointed by the bank to register a mortgage bond over your property. These are known as CONVEYANCING FEES. The Law Society has recommended tariffs that conveyances may charge to transfer property into your name and register your bond. Once again the higher the purchase price of the property, the higher the conveyancing fees.
Example conveyancing prices excluding VAT@14%
R 540,000.00 property cost - R 4,600.00 fee
R1,500,000.00 property cost - R 14,000.00 fee
2. Revenue Stamp Fees
Otherwise known as stamp duty. Stamp duty is state government tax that is payable when a property is sold by the buyer of the property. If you're looking for a definition see the following link: Stamp Duty Definition.
For a property valued at R540,000.00 your stamp duty will be R1,000.00.
3. Posts and Petties
Post and petties include all costs to the bank for postage's, admin fees, phones calls and odds and ends (Please you thought you were going to get something free, look again).
For a property values at R540,000.00 your post and petties charges will be R300.00
Thanks SARS without you where would we be :)
VAT charges are R686.00 on a bond of R540,000.00
5. Deeds Office Registration Fees
The deeds office do everything that's required to register the bond into the buyers name. They fall under the Department of Land Affairs so unfortunately they fall under the dreaded "Government Department Sector". This is the final step in the entire process and normally takes up to 15 days.
A fixed fee payable to the Deeds Office for registering the bond.
Deeds office charges are R400.00 for a bond of R540,000.00
Your total transfer costs on a bond of R540,000.00 will be R15,108.00. Note: this excludes your registration costs.
1. Transfer Duties
The South African Government levies a tax on property transactions called transfer duty. This is paid when you buy a property and it is transferred into your name. When you purchase an existing home the transfer duty is based on the value of the land and the building. This is why purchasing vacant land can be such an advantage as you only pay transfer duties on the value of the land.
Transfer duty is charged depending on the price of the property purchased, the more expensive it is, the higher the transfer duty. For more information download our Transfer Duty Costs Pdf.
- The transfer duty on a bond under R500 000.00 is zero
- Bonds from R 500 001.00 to 1 million = R 25 000.00 Transfer Duty
- Above R 1 000 001.00 = R 25 000.00 + 8% Transfer Duty
Purchasing a property in the name of a CC, company or a trust, you will be charged a transfer duty of 10% of the purchase price. Should a property be bought from a property developer, you will pay VAT portion rather than the transfer duty on the purchase price. Should you want to work out your costs check out our Mortgage Calculators.
2. Conveyancing Fees
Example prices excluding VAT@14%
R 540 000.00 property cost - R 6,800.00 fee
R1,500,000.00 property cost - R 12,000.00 fee
3. Posts and Sundries
The cost of documents and certificates that the conveyancing attorney needs for registration submission.
R400.00 on a bond of R540,000.00
R1,008.00 on a bond of R540,000.00
5. Deeds Office Fees
Deeds office fees are As Above.
R400.00 on a bond of R540,000.00
6. Incidental Fees
This also falls under the postage / courier service fee charges. I don't think that this is a definite charge but may be charge should you be residing overseas.
The fee is R1,500.00 on a bond of R540,000.00
Costs and Attorneys (SUMMARY)
When purchasing a property some costs are involved.
Needed if one qualifies for a percentage of the loan. Interest can be earned on the deposit if kept by an attorney in a trust until the property is transferred into your name. It is equity that you introduce. Historically it was a prerequisite, but these days it is more flexible. mount is stated in the Offer to Purchase contract.