What to budget for when buying or selling a property

When you buy or sell a property you want to be prepared.


Herewith a list of expenses you need to budget for:



  • Bond cancellation costs: The bondholder appoints attorneys to cancel your bond. You will be responsible for their costs. Currently most attorneys charge between R3000 and R5000 to cancel a bond.
  • Clearance figures at the Local Municipality: You will need to pay any outstanding monies due to the municipality as well as about 4 months in advance for all your rates, services and expenses. After registration, the municipality will refund any credit due to you. This varies from council to council but can take between 3 – 12 months.
  • Clearance figures at the Body Corporate or Home Owners Association: Your account must be paid up to date as well as 2-3 months in advance. Any credit will be refunded after registration.
  • Electrical, plumber, beetle, gas, borer, fencing compliance certificates, where applicable.
  • Estate agent’s commission



  • Transfer Attorneys Costs: The purchaser is responsible for all the costs in a transfer. The transfer costs are calculated on a sliding scale as prescribed by the law society. You are welcome to contact us for a quote.
  • Bond Attorneys Costs: The financial institution where you have applied for a bond will appoint attorneys to register the bond for whose costs you will be responsible.
  • Transfer duty: A tax levied by SARS which is payable before registration takes place. Must be paid within six months of signature of the offer to purchase or SARS will charge interest. There are exemptions in certain transfers ( deceased estates, divorces etc. Contact us for more information) These are the Transfer Duty rates applied to properties acquired on or after 1 March 2017, and apply to all persons (including Companies, Close Corporations and Trusts):
  ​VALUE OF PROPERTY               



0 – 900 000 0%
900 001 – 1 250 000 3% of the value above R900 000
1 250 001 – 1 750 000 ​R10 500 + 6% of the value above R 1 250 000
1 750 001 – 2 250 000 R40 500 + 8% of the value above R 1 750 000
2 250 001 – 10 000 000 R80 500 +11% of the value above R2 250 000
10 000 001 and above R933 000 + 13% of the value above R10 000 000


  • Local Council and/or Body Corporate and/or HOA certificate costs: The administration fees levied by these institutions to issue the clearance certificate are for the Purchaser’s account.
  • Local Council / Body Corporate Electricity Deposit

Things You Should Know When Buying or Selling a Property: The Conveyancing Process from A to Z

Conveyancing  is the process of transferring ownership of immovable property from one person to another. It is done by registering a new deed of transfer at the relevant Deeds Office.

There are usually three attorneys involved in the process:


TRANSFERRING ATTORNEYS: The attorney appointed to transfer the property. In practice the Seller has the right to choose and appoint the transfer attorney but the parties can also agree on an attorney in the Offer to Purchase.


BOND CANCELLATION ATTORNEY: If the Seller currently has a bond registered over his/her property, the financial institution where the is registered will appoint an attorney to cancel the bond.


BOND REGISTRATION ATTORNEY: If the Purchaser is financing the property, the bank/financial institution will appoint an attorney to register the new bond over the property.


Herewith a short schematic of the entire  transfer procedure:



Please note that the above process is for an ordinary transfer. Should the transfer be in terms of a deceased estate, an endorsement transfer, divorce transfer, etc., the process will include more steps and will take longer to register. The efficiency of the various Government departments will determine the length of time it takes to register the transaction but ordinarily does not exceed four months.