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Costs Involved in Buying Immovable Property in South Africa

When it comes to transferring immovable property in South Africa, there are several costs associated with the conveyancing process. Let’s break it down:

Conveyancer’s Fee

The conveyancer’s fee is typically based on a recommended tariff. It covers the legal work involved in the transfer process, including drafting and reviewing documents, liaising with the Deeds Office, and ensuring a smooth transfer. The exact fee can vary but is usually a percentage of the property’s value.

Deeds Office Fee

This fee is based on the value of the transaction. The Deeds Office handles the registration of property transfers and maintains the official records. The fee contributes to the administrative costs incurred during this process.

Transfer Duty

Transfer duty is applicable if the property’s value exceeds a certain threshold (currently set at R1.1 million for the 2023 tax year). It is calculated based on the property’s value and is payable to the South African Revenue Service (SARS).

Rates Clearance Certificate

Before the transfer can take place, the conveyancer obtains a rates clearance certificate from the local municipality. This certificate confirms that all outstanding rates and taxes have been paid up to the date of transfer.

Levy Clearance Certificate (for sectional title properties)

If the property is a sectional title unit (such as an apartment or townhouse), a levy clearance certificate is required. It ensures that all levies owed to the body corporate have been settled.

Deeds Searches and Postage

The conveyancer conducts searches at the Deeds Office to verify ownership, encumbrances, and other relevant details. Additionally, there are postage and petties costs associated with sending documents.

Bond Registration Fees

These fees cover the services of registering the bond with the relevant authorities. They are paid to the bond attorneys.

The exact amount depends on the property’s value and the bond amount.

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Remember that these costs can vary based on the specifics of the transaction and the conveyancer you choose. As a rule of thumb, it’s advisable to allocate between 8% and 10% of the property’s purchase price for these additional costs.

Always consult with a qualified conveyancer to get an accurate estimate for your specific situation.  Keep in mind that these figures can vary based on the specifics of your transaction and the conveyancer you choose.

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