Transfer Duty and Deeds Office Fees
When purchasing a property in South Africa, buyers encounter various costs, including transfer duty and deeds office fees. Below we have taken the time to summarise these fees for you in order to provide you with a clearer understanding regarding what these fees entail, as well as what these fees may be in relation to the value of your property purchase:
Transfer Duty
Transfer duty is a tax levied by the South African government on the transfer of property from one owner to another. It is payable by the purchaser and calculated based on the purchase price of the property by the buyer. The rates are progressive, meaning they increase in accordance with the value of the property. The more expensive the property, the higher the transfer duty.
Below we provide you with the latest transfer duty values based on the property’s purchase price:
| Value of the property (R) | Rate |
| 1 to 1 100 000 | 0% |
| 1 100 001 to 1 512 500 | 3 % of the value above R1 100 000 |
| 1 512 501 to 2 117 500 | R12 375 + 6% of the value above R1 512 500 |
| 2 117 501 to 722 500 | R48 675 +8% of the value above R2 117 500 |
| 2 722 501 to 12 100 000 | R97 075 +11% of the value above R2 722 500 |
| 12 100 001 and above | R1 128 600 + 13% of the value above R12 100 000 |
*These fees are accurate as of the latest updates to this fee structure from March/April 2023
Note that for property purchases less than R1,100,000.00 there is no transfer duty payable.
Deeds Office Fees
Deeds office fees are the charges associated with the registration of the property transfer in the deeds registry. This process involves the legal transfer of ownership from the seller to the buyer and the registration of the new owner in the official government records. These fees cover administrative costs and vary depending on the property’s value and the complexity of the registration process.
Below we provide you with the latest Schedule of Fees of Office for:
| Item | R | |
| (i) | does not exceed R100 000 | 45,00 |
| (ii) | exceeds R100 000 but does not exceed R200 000 | 101,00 |
| (iii) | exceeds R200 000 but does not exceed R300 000 | 642,00 |
| (iv) | exceeds R300 000 but does not exceed R600 000 | 800,00 |
| (v) | exceeds R600 000 but does not exceed R800 000 | 1 126,00 |
| (vi) | exceeds R800 000 but does not exceed R1 000 000 | 1 293,00 |
| (vii) | exceeds R1000 000 but does not exceed R2 000 000 | 1 453,00 |
| (viii) | exceeds R2 000 000 but does not exceed R4 000 000 | 2 014,00 |
| (ix) | exceeds R4 000 000 but does not exceed R6 000 000 | 2 443,00 |
| (x) | exceeds R6 000 000 but does not exceed R8 000 000 | 2 909,00 |
| (xi) | exceeds R8 000 000 but does not exceed R10 000 000 | 3 401,00 |
| (xii) | exceeds R10 000 000 but does not exceed R15 000 000 | 4 048,00 |
| (xiii) | exceeds R15 000 000 but does not exceed R20 000 000 | 4 863,00 |
| (xiv) | exceeds R20 000 000 | 6 477,00 |
b) a bond of which the capital amount …
| Item | R | |
| (i) | does not exceed R150 000 | 496,00 |
| (ii) | exceeds R150 000 but does not exceed R300 000 | 642,00 |
| (iii) | exceeds R300 000 but does not exceed R600 000 | 800,00 |
| (iv) | exceeds R600 000 but does not exceed R800 000 | 1 126,00 |
| (v) | exceeds R800 000 but does not exceed R1 000 000 | 1 293,00 |
| (vi) | exceeds R1000 000 but does not exceed R2 000 000 | 1 453,00 |
| (vii) | exceeds R2 000 000 but does not exceed R4 000 000 | 2 014,00 |
| (viii) | exceeds R4 000 000 but does not exceed R6 000 000 | 2 443,00 |
| (ix) | exceeds R6 000 000 but does not exceed R8 000 000 | 2 909,00 |
| (x) | exceeds R8 000 000 but does not exceed R10 000 000 | 3 401,00 |
| (xi) | exceeds R10 000 000 but does not exceed R15 000 000 | 4 048,00 |
| (xii) | exceeds R15 000 000 but does not exceed R20 000 000 | 4 863,00 |
| (xiii) | exceeds R20 000 000 but does not exceed R30 000 000 | 5 667,00 |
| (xiv) | exceeds R30 000 000 | 8 098,00 |
*These fees are accurate as of the latest updates to this fee structure from March/April 2023
Property Calculator
If you would like a more accurate indication of what fees you should budget for should you have a property in mind of a specific value, our Property Calculator was built to assist our clients in order to understand the estimated costs involved during this process.
Key Points to Note
Responsibility: The buyer is responsible for paying both the transfer duty and the deeds office fees.
Payment Timing: These fees are typically paid early in the property transfer process to ensure the legal transfer of ownership can proceed.
Calculation and Payment: Transfer duty is calculated based on the purchase price, while deeds office fees are based on a fixed schedule of fees which can be obtained from the deeds office or through the conveyancer handling the transaction.
Understanding these costs is crucial for budgeting when purchasing a property, ensuring that buyers are fully prepared for the financial obligations involved in acquiring property in South Africa.
We hope that this information helps you in your property purchase process. Buying property, especially your first property, is a big financial decision, and therefore our Conveyancing Team here at EW Serfontein & Associates Inc. are well versed in assisting buyers and sellers navigate this process.
Contact Us
For expert legal guidance on matters pertaining to the purchase or sale of property, please reach out to EW Serfontein & Associates Inc. Our conveyancing team is here to assist you every step of the way.
This article is not intended to constitute any form of legal advice.
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