Property transfer costs: Who pays what?

The buyer and seller of a property are responsible for certain costs associated with the transfer process. Here’s a look at who’s liable for what.

Buying Property On Auction | Property Blog Articles

THE BUYER

Transfer fees 

These are payable to the transfer attorneys and include provisions to obtain a) the rates clearance figures and certificate and b) the levy clearance figures and certificate from the body corporate or homeowners association, and to cover the cost of the rates consultant as well as the associated management admin fee.  

Transfer duties

Any transfer duties in respect of the purchase price are payable to SARS and are included in the pro forma statement of account issued by the transfer attorneys. 

Levy or rates split

The account issued by the transfer attorneys can also include provisions for a levy or rates split as certain managing agents and local authorities require that the attorneys arrange the pro rata split on registration of the property. 

Bond registration fees 

These are payable to the bond registration attorneys appointed by the bank.

THE SELLER

The bond 

If there is a bond registered over the property, it must be settled along with the bond cancellation attorney fees. The bond cancellation attorney is appointed by the bank once the transfer attorneys have applied for settlement figures from the bank.

Rates clearance figures 

These are issued by the local authority and include the outstanding amount owed to council. They also include provision for the payment of the account for a period of between three and five months. Certain councils may require additional certificates like a water clearance certificate and SPLUMA certificate.

Levy clearance figures 

These are issued by the body corporate and homeowners association, if applicable. They include any arrears amount as well as provision for the payment of the account for a period of between two and three months.

Compliance certificates 

These include electrical compliance, electric fence compliance, gas compliance and beetle certificates, where applicable.

FICA verification fee 

This is required to confirm the identity of the seller in respect of the property. 

Other transfer-specific costs 

These can include the correction of an incorrect title deed, replacement of a lost title deed etc.

To calculate general transfer and bond registration fees, please use our calculator or the Snymans app. For a full and detailed quotation, please contact our office.

Want more Snymans articles? Sign up for our monthly newsletter.

Follow Snymans on Facebook for more legal information, tips and news about property.

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

Pay with complete peace of mind[post_view before=""]

With cybercrime on the increase globally, the team at Snymans is increasingly aware of the importance of safeguarding both our clients and our business against cyber criminals when it comes to making and receiving electronic payments. In fact, phishing crimes have become such a cause for concern in South Africa that the Legal Practitioners’ Fidelity Fund has declared that it will not make good on insurance claims arising from these types of crimes.

Read More
The difference between movable and immovable property
Contractual Matters

What happens if a mistake is made during the transfer of a property?[post_view before=""]

It’s an unfortunate reality that mistakes do sometimes occur in deeds and documents during the transfer process. Fortunately, however, the Deeds Registries Act makes provision for mistakes of this nature to be rectified.

Read More
What Happens To The Ownership Of My Property When I Get Married
Contractual Matters

Customary marriages and ownership of immovable property[post_view before=""]

Recognition of customary marriages in South Africa has undergone several shifts over the years through the implementation of new legislation. This has impacted not only the legal status of the parties to a customary marriage but also their ownership of and rights to matrimonial property.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Rules Board Regulates Non-litigious Fees[post_view before=""]

The introduction of the Legal Practice Act 28 of 2014 has led to several changes in the juridical space, including one related to non-litigious fees – fees charged by attorneys for services that do not constitute litigation and are not finalised in court.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Corporate actions and resolutions[post_view before=""]

In South Africa, the business and affairs of a company must be managed by its board of directors. As such, the board is responsible for the daily corporate and commercial affairs of the company.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Property transfer costs: Who pays what?

The buyer and seller of a property are responsible for certain costs associated with the transfer process. Here’s a look at who’s liable for what.

Buying Property On Auction | Property Blog Articles

THE BUYER

Transfer fees 

These are payable to the transfer attorneys and include provisions to obtain a) the rates clearance figures and certificate and b) the levy clearance figures and certificate from the body corporate or homeowners association, and to cover the cost of the rates consultant as well as the associated management admin fee.  

Transfer duties

Any transfer duties in respect of the purchase price are payable to SARS and are included in the pro forma statement of account issued by the transfer attorneys. 

Levy or rates split

The account issued by the transfer attorneys can also include provisions for a levy or rates split as certain managing agents and local authorities require that the attorneys arrange the pro rata split on registration of the property. 

Bond registration fees 

These are payable to the bond registration attorneys appointed by the bank.

THE SELLER

The bond 

If there is a bond registered over the property, it must be settled along with the bond cancellation attorney fees. The bond cancellation attorney is appointed by the bank once the transfer attorneys have applied for settlement figures from the bank.

Rates clearance figures 

These are issued by the local authority and include the outstanding amount owed to council. They also include provision for the payment of the account for a period of between three and five months. Certain councils may require additional certificates like a water clearance certificate and SPLUMA certificate.

Levy clearance figures 

These are issued by the body corporate and homeowners association, if applicable. They include any arrears amount as well as provision for the payment of the account for a period of between two and three months.

Compliance certificates 

These include electrical compliance, electric fence compliance, gas compliance and beetle certificates, where applicable.

FICA verification fee 

This is required to confirm the identity of the seller in respect of the property. 

Other transfer-specific costs 

These can include the correction of an incorrect title deed, replacement of a lost title deed etc.

To calculate general transfer and bond registration fees, please use our calculator or the Snymans app. For a full and detailed quotation, please contact our office.

Want more Snymans articles? Sign up for our monthly newsletter.

Follow Snymans on Facebook for more legal information, tips and news about property.