A LUXLIV buyer's guide · Figures current as at October 2026
You've found the home. Your offer has been accepted. Then two cost estimates arrive from two different attorneys, and suddenly the numbers feel less clear than the view from the main bedroom.
This is one of the most common points of confusion for buyers in South Africa. The good news: once you understand the difference between transfer costs and bond costs, you can budget with confidence instead of surprise.
The short answer
- Transfer costs pay for moving ownership of the property from the seller into your name. They include transfer duty, a tax paid to SARS.
- Bond costs pay for registering your home loan over the property. They only apply if you are financing the purchase with a bond.
Both are paid by the buyer, both are handled by conveyancing attorneys, and both are in addition to your deposit. The transfer and the bond are registered at the Deeds Office at the same time.
Who are the attorneys?
When you buy with a bond, there are usually two attorneys involved:
- The transferring attorney is normally appointed by the seller. Their job is to register the property in your name. You, the buyer, pay their fees.
- The bond registration attorney is appointed by your bank from its approved panel. Their job is to register the bond in favour of the bank. You pay their fees too, as the bank does not cover them.
If you are buying cash, only the transferring attorney is involved. It is also possible for the same attorney to handle both the transfer and the bond.
What makes up transfer costs?
- Transfer duty – a tax paid to SARS by the person acquiring the property, calculated on a sliding scale.
- The transferring attorney's fee – based on a guideline tariff and scaled to the purchase price.
- Deeds Office registration fee – for registering the transfer.
- Disbursements – administrative costs such as electronic platform and document charges.
Transfer duty rates for 2026/27
SARS confirmed that the rates effective from 1 April 2026 are unchanged from the previous year:
| Property value | Transfer duty |
|---|---|
| R1 – R1 210 000 | 0% |
| R1 210 001 – R1 663 800 | 3% of the value above R1 210 000 |
| R1 663 801 – R2 329 300 | R13 614 + 6% of the value above R1 663 800 |
| R2 329 301 – R2 994 800 | R53 544 + 8% of the value above R2 329 300 |
| R2 994 801 – R13 310 000 | R106 784 + 11% of the value above R2 994 800 |
| R13 310 001 and above | R1 241 456 + 13% of the value above R13 310 000 |
Source: SARS. The same rates apply to individuals, companies, close corporations and trusts.
What that looks like in practice
Calculated using the SARS table above:
| Purchase price | Transfer duty |
|---|---|
| R1 200 000 | R0 |
| R2 500 000 | R67 200 |
| R3 000 000 | R107 356 |
| R5 000 000 | R327 356 |
| R15 000 000 | R1 461 156 |
Attorney and Deeds Office fees are added on top of these amounts.
VAT or transfer duty – never both
A property sale attracts either VAT or transfer duty, not both. If the seller is a registered VAT vendor selling in the course of their business, such as a developer selling new units, VAT applies instead of transfer duty. If you are buying in a new development, confirm whether the price is VAT inclusive.
When transfer duty is paid
Transfer duty is payable within six months of the date of acquisition. After that, SARS charges interest at 10% per year for each completed month. Your conveyancer pays it on your behalf via SARS eFiling, and the transfer cannot be registered without the SARS receipt.
What makes up bond costs?
- The bond registration attorney's fee – scaled to the size of your bond, not the purchase price.
- Deeds Office fee – for registering the bond.
- The bank's initiation fee – a once-off fee for opening the home loan. Under the National Credit Regulations, the maximum for a mortgage is R1 100 plus 10% of the amount above R10 000, capped at R5 250 excluding VAT.
- Disbursements – administrative and document charges.
A smaller bond means lower bond costs. A larger deposit therefore reduces both your monthly repayment and your upfront bond registration costs.
Transfer costs vs bond costs at a glance
|
| Transfer costs | Bond costs |
|---|---|---|
| Purpose | Registers the property in your name | Registers your home loan over the property |
| When they apply | Every purchase | Only when you take a bond |
| Attorney appointed by | Usually the seller | Your bank |
| Paid by | Buyer | Buyer |
| Calculated on | Purchase price | Bond amount |
| Includes SARS tax? | Yes – transfer duty (unless VAT applies) | No |
How to budget with confidence
- Ask for estimates early. Request a cost estimate from the transferring attorney as soon as your offer is signed, and from the bond attorney once your bond is approved.
- Keep the cash ready. Transfer and bond costs are paid over and above your deposit, and must be settled before registration.
- Check VAT vs transfer duty. Especially on new developments and off-plan purchases.
- Get your tax affairs in order. SARS uses property transfers to check tax compliance. Outstanding returns or payments can delay your transfer. SARS now also requires a tax reference number for individual buyers and sellers on transactions above R2 million.
- Use a reputable calculator. Many conveyancing firms offer free online bond and transfer cost calculators for a quick estimate.
Frequently asked questions
Who pays transfer costs – the buyer or the seller? The buyer pays transfer costs, including transfer duty.
Can I choose my own transferring attorney? The seller usually appoints the transferring attorney. The bank appoints the bond attorney from its panel.
Is there transfer duty on a property under R1 210 000? No. Properties valued up to R1 210 000 are exempt from transfer duty.
Do I pay transfer duty on a new development? Not if the developer is a VAT vendor. In that case VAT applies instead.
Do cash buyers pay bond costs? No. Bond costs only apply when you register a home loan.
The LUXLIV view
Luxury isn't only about the home. It's about the experience of buying it. Knowing exactly where every rand goes before you sign means fewer surprises and more certainty on the way to your keys.
Ready to find the home that matches your idea of luxury? Speak to a LUXLIV agent today.
This article is for general information only and is not legal or financial advice. Always request a written cost estimate from your conveyancing attorney before you sign.