Bond Registration Costs and Transfer Costs

We all know that there are costs when registering a bond or a home loan in South Africa.transfer-duty-costs

The problem is when you’re a first time buyer or even a second time buyer those hidden bond registration costsare often the ones that can nab you in the “ahem”, unless of course you get proper legal advice.

There are loads of sites on the web that do give a very good breakdown of these costs, but we thought we’d join the masses and give some of our own advice too.

Who knows, maybe we spot something they didn’t. The bond registration costs are: Bond/Registration Costs and Transfers Costs.

The entire process of property transfer involves a number of people, beginning with the seller who will sell his/her home either privately or with the assistance of an Estate Agent. If the property is sold by an estate agent the seller will pay commission to the agent. The amount payable is negotiable but the normal tariff, recommended by the Institute of Estate Agents is 7.5% – this commission will attract VAT as the agent is providing a service to the seller (14%).

The buyer is responsible for the payment of transfer costs and the costs of registering any new mortgage bonds for the property purchased. He/she will also have to pay an inspection fee and initiation fee. Transfer costs include transfer duty and conveyancing fees. Transfer duty is calculated as a percentage of the purchase price and varies depending on the purchaser’s legal status. Bond and transfer costs are always overlooked when buying a property, especially your first one, and should be thoroughly understood . These costs more often than not catch people out and amount to thousand’s of rand’s. Understand them and read this document carefully as they DO affect the total value of the property you are purchasing.

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

 4. VAT

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

Transfer Costs

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

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

4. VAT

As Above.
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.

Conveyancing Fees / Transfer fees consists of:

Includes “transfer duty” payable to the receiver of revenue, as well as “deeds office fee” and “administrative fee” payable to the transferring attorney pro rate to the local authorities or Body Corporate – if sectional title. Be aware that transfer duty is not to be paid if the transaction involves a VAT registered party. The deeds and admin fee is payable on a VAT transaction.

Transfer Duty

– Paid to the receiver of revenue, a form of tax levied when transfer of land ownership is registered.

Administration Fee

– Monthly fee charged on loans on residential property – payable to the transferring attorney.

Deeds office transfer fee

– Fixed fee payable to Deeds Office or transferring the fee

Postage and sundries

– The cost of documents and certificates that the conveyancing attorney needs for transfer submission

Bond Registration Fees consists of:

Includes a registration fee/bond costs. Calculated on total loan amount registered or further advance amount.

Deeds Office Registration Fee

– Fixed fee payable to Deeds Office for registering fee

Postage and Sundries

– The cost of documents and certificates that the conveyancing attorney needs for registration submission.

Valuation Assessment Fee

– Bank assessors carry out valuation and a fee is charged. New Credit Act will possibly influence the existence of this fee. Payable to the bank. Also know as security assessment fee.