Costs when Buying Property

Every now and again we get buyers viewing properties or visiting our show houses with no idea that there are transfer and registration costs payable when buying property. Some of them also think that this can be financed with the bond amount.

So just to shed some light on this subject, especially for first-time buyers ….

When buying property, the purchasers (in most cases) are responsible for paying  the Transfer Costs as well as the Bond Registration Costs to the Transferring Attorney upon request. This is done after all suspensive conditions in the Sales Agreement has been fulfilled and needs to be paid in order for the registration process to proceed. In the case where someone buys a property in a new development these costs or a portion of these costs may already be included in the sale. Most property websites and portals as well as banking sites have built-in cost calculators where these costs can be calculated. Please have a look at our website at for more detail.

Transfer Costs - Web.jpg

Transfer Costs: Is paid on the full sales / purchase price.
Bond Registration Costs: Is paid on the bond amount only.

Both these costs are calculated by the Attorney firms involved according the a schedule and sliding scale. Please look at the following example:

Full Purchase Price: R 1 500 000
Deposit Amount: R  100 000
Bond Amount: R 1 400 000

In the scenario above, the following estimated costs will apply.

Property Transfer Costs (R 50 298.00)
Attorney Fees: R 23 598.00
Transfer Duty: R 25 500.00
Post, petties, FICA and other: R 1200.00

Bond Registration Costs (R 29 985.00)
Attorney Fees: R 22 800.00
Bank Initiation Fee: R 5 985.00
Post, petties, FICA and other: R 1200.00

TOTAL COSTS: R 80 283.00

The Purchaser in the above scenario will then have to have R 180 283.00 cash available to cover the deposit and costs. Costs cannot be added to the bond amount / purchase price as this is not allowed by the Banks or Attorney Firms.

It is very important that prospective buyers take the time to calculate all the various costs and payments that they will be liable for before shopping for a new property.

For any queries on the above, please feel free to contact us or send us an email to /

Hope you have a great day …… off to go sell some houses.



Costs when buying a Property

Q: Except for the bond repayment, insurance etc, what will it cost me to buy a property.

A: When buying a property, that property and the bond on the property ( there is a bond) needs to be registered. The registration (Property Transfer) is a legal process, done by an Attorney (Conveyancer) at a Legal Firm and that costs money. The two Registrations can be done by the same Firm but because most banks appoint their own Attorneys for the Bond it is more often than not two separate Firms.  Attorney Firms have clear guidelines as to the amounts they may charge for these Transfers. The price of the Property as well as the Bond amount play a big role.

For example, a R 1 000 000 property with a bond of R 900 000 will generate costs as follows:

1. Property Transfer = +/- R 28 800 of which +/- R 13 000 (Excl. VAT) goes to the Attorney Firm,
R 12 000 goes to SARS as Transfer Duty (only payable on transactions higher than R 600 000).

2. Bond Registration = +/- R 16 500 (maximum of R 5000 initiation fee included)
of which +/- R 8 600 (Excl. VAT) goes to the Attorney Firm.

So to Register this transaction you will need +/- R 45 300
including your deposit of 10% (R 100 000) you are looking at close to R 150 000.00

The above costs are not financed by the banks any more except for some cases where staff get special deals and can sometimes be financed by personal loans depending on the amount.

For more details and a comprehensive Cost Calculator click on the link below.